NEW YORK – The first wholesale-only nationwide 4G-LTE network is coming to the United States as early as next year.
Known as LightSquared, the new network will provide wireless broadband capacity to at least 100 million Americans by December 2012, and aims to cover 92% of the U.S. population by 2015, the company said Tuesday.
The network will allow customers such as retailers, wireline and wireless communication service providers, cable operators, device manufacturers, web players, and content providers to offer satellite-only, terrestrial-only, or integrated satellite-terrestrial services to their end users. LightSquared said that its wholesale-only business model ensures that it has no conflict of interest with its customers.
"LightSquared will be a disruptive force in the U.S. wireless landscape by democratizing wireless broadband services," said chairman and CEO Sanjiv Ahuja, in the announcement. "We’re not only delivering exciting opportunities for manufacturers and retailers, but also real change for consumers, dealers, and service providers. We’re providing everyone, including underserved communities, with a fast, reliable experience regardless of where they are located in the United States. This network will return our country to its rightful position as a leader in wireless broadband technology and solidify its reputation as the center of global innovation."
Nokia Siemens Networks has signed an 8-year agreement with LightSquared network worth $7 billion to deploy, install, operate, and maintain the network.
LightSquared controls high quality spectrum assets of 59 Mhz of nationwide spectrum in what it referred to as “an advantageous frequency position”, and will consist of approximately 40,000 cellular base stations.
In addition to the $2.9 billion of assets already contributed by Harbinger Capital Partners and affiliates, LightSquared announced an additional debt and equity financing of up to $1.75 billion.
