LightSquared wins two-year reprieve for spectrum payments to Inmarsat

LightSquared will use the extra time to focus on obtaining U.S. regulatory approval for its planned LTE network, it said

LightSquared has a further two years in which to seek regulatory approval for its LTE mobile network in the U.S. before it must begin making payments to its radio spectrum supplier Inmarsat, the companies announced Friday.

The first quarterly spectrum rental payment of US$29.6 million fell due on March 31, but now LightSquared has negotiated a reprieve until March 31, 2014, at the latest. It also has the option to resume payments -- and begin using the spectrum -- on any date before then, the companies said.

LightSquared will use the extra time to focus on obtaining regulatory approval for its project to offer LTE broadband wireless services across the U.S., it said Friday.

Inmarsat had previously threatened LightSquared with termination of the cooperation agreement, saying that it was in default of a payment due under the first phase of their agreement. LightSquared, though, said Inmarsat hadn't fulfilled all its obligations under the agreement.

"We complied with everything they asked us to do," said Inmarsat spokesman Chris McLaughlin, and now LightSquared has made the outstanding $56.25 million phase-one payment to Inmarsat.

That payment was to cover Inmarsat's reorganization of the way it used radio spectrum in North America, and also any modifications to its customers' terminal equipment to take account of the spectrum changes.

"We had alternating stripes of L-band spectrum," said McLaughlin. Reorganizing the spectrum allocations allowed LightSquared to obtain the contiguous block it needed to offer its service.

The dispute with Inmarsat wasn't the only thing casting a shadow on LightSquared's future, though.

LightSquared plans to use a combination of satellite and terrestrial signals, which the GPS industry is concerned will cause interference with navigation devices operating on frequencies adjacent to those LightSquared intends to use. In mid-February, the U.S. Federal Communications Commission said it was minded to withdraw its conditional approval for the project, and invited comments on its proposal. The Commission extended the period for comments, finally closing it in late March.

The FCC will now analyze those comments before announcing its decision.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.
Peter Sayer

Peter Sayer

IDG News Service
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Tom Pope

Dynabook Portégé X30L-G

Ultimately this laptop has achieved everything I would hope for in a laptop for work, while fitting that into a form factor and weight that is remarkable.

Tom Sellers

MSI P65

This smart laptop was enjoyable to use and great to work on – creating content was super simple.

Lolita Wang

MSI GT76

It really doesn’t get more “gaming laptop” than this.

Jack Jeffries

MSI GS75

As the Maserati or BMW of laptops, it would fit perfectly in the hands of a professional needing firepower under the hood, sophistication and class on the surface, and gaming prowess (sports mode if you will) in between.

Taylor Carr

MSI PS63

The MSI PS63 is an amazing laptop and I would definitely consider buying one in the future.

Christopher Low

Brother RJ-4230B

This small mobile printer is exactly what I need for invoicing and other jobs such as sending fellow tradesman details or step-by-step instructions that I can easily print off from my phone or the Web.

Featured Content

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?