[Satellite TODAY Insider 01-31-11] Hybrid wireless and satellite broadband network LightSquared has entered the second phase of its $337.5 million cooperation agreement with Inmarsat to increase the amount of contiguous spectrum available to both companies, LightSquared announced Jan. 28.
    LightSquared commenced the first phase of the agreement in August. The second phase will focus on Inmarsat providing LightSquared with enhanced operational flexibility for the deployment of its 4G-LTE integrated terrestrial and satellite network. Inmarsat will make additional spectrum available to LightSquared at an annual cost of $115 million, which will increase at an annual rate of 3 percent.
    “In preparation for the notice received today, Inmarsat has already initiated programs to ensure our customers are protected from interference risks and has conducted analysis of the issues over an extended period. Inmarsat is confident that the effects on customers will be minimal and, where needed, will be dealt with responsibly,” Inmarsat COO Perry Melton said in a statement.
    When the second phase of the deal is fully executed, LightSquared will have the use of up to 59 MHz of terrestrial and L-band ATC spectrum over the continental United States and Canada.  
   Progress on the contract follows a Jan. 27 decision from the U.S. Federal Communications Commission (FCC) that will allow LightSquared to launch its hybrid broadband service and to circumvent a federal rule by offering wireless broadband service without forcing clients to also lease satellite connections. As a condition of this decision, LightSquared said it would establish a cooperative process to work with the FCC and other federal agencies to address and resolve issues relative to its network deployment.
   A LightSquared spokesman told Satellite TODAY Insider that the FCC’s decision was a key milestone for the service. The decision “was a major step for us. It gave us the green light to advance our long-term plans and initiate our short-term spectrum acquisition strategy. Inmarsat is proving to be an invaluable partner on this endeavor.”
    LightSquared, financed by Harbinger Capital, is building a wholesale-only nationwide 4G-LTE network complemented by satellite coverage to compete in the mobile broadband space with market leaders AT&T and Verizon Wireless. 

Related Stories-

FCC Drops Satellite Cellphone Requirement for LightSquared   Satellite Today   January 27, 2011
[Satellite TODAY 01-27-11] The U.S. Federal Communication Commission (FCC) granted a LightSquared request to drop its requirement that mobile phones using satellite airwaves must be able to communicate with satellites, the company announced Jan…

SkyTerra-1 Launch Adds Mobile Capabilities Over the United States   Satellite Today   December 15, 2010
LightSquared sees the launch of SkyTerra-1 as a major step in combining satellite systems and 4G-LTE terrestrial networks and a peek into the future of the North American consumer market. Launched Nov. 15 by International Launch Services…

ABI: Market Saturation Will Impact Fixed Broadband Sector Growth    Satellite Today   December 1, 2010
[Satellite TODAY Insider 12-01-10] The global DSL fixed broadband platform contributed nearly 60 percent of the sector s total service revenues at the end of the 2010 third quarter, but ABI Research Home Practice Director Jason Blackwell expects…