[Satellite TODAY 07-21-10] Harbinger Capital signed an eight-year, $7 billion contract with Nokia Siemens Networks to build and operate a 4G LTE satellite and mobile broadband network for wireless providers, which will rely on satellites and terrestrial spectrum that Harbinger acquired through its $280 million purchase of SkyTerra in March, Harbinger announced July 20.
    The new venture, dubbed LightSquared, plans to launch in its first markets by the middle of 2011 and aims to provide coverage to 92 percent of the United States by 2015. The company will raise up to $1.75 billion in debt and equity before service launch. Harbinger Capital Partners and affiliates have invested $2.9 billion in the venture.
    Sanjiv Ahuja, former CEO of France Telecom’s Orange subsidiary, has been selected to lead LightSquared.
    The deal follows Nokia Siemens Networks’ acquisition July 19 of the majority of Motorola’s wireless network infrastructure assets for $1.2 billion in cash — a transaction that is expected to close by the end of 2010.
    Harbinger said the deal will meet financing and coverage requirements set by the U.S. Federal Communications Commission (FCC) when the firm acquired SkyTerra. One of those conditions requires Harbinger to seek the FCC’s approval before leasing spectrum on its network to major wireless providers such as AT&T and Verizon, in order to promote competition in the next-generation wireless broadband market. Another requirement is that Harbinger must build out its network to provide coverage to at least 100 million people in the United States by the end of 2012, 145 million people by the end of 2013, and 260 million people by the end of 2015.

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