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[Satellite News 12-09-11] LightSquared’s quest to challenge a perceived 4G LTE market duopoly in the United States has been anything but easy. Plagued by interference issues surrounding nearby GPS signals and scrapping with the U.S. Federal Communications Commission (FCC) regarding an acceptable solution to those issues, the company highlighted the importance of its realization by announcing the signature of more than 30 agreements to its network of customers.
LightSquared Executive Vice President Frank Boulben asserted that the 4G LTE’s domestic market is being run by two incumbent carriers and that the situation is fueling demand for an alternative low-cost, nationwide wireless broadband network that will allow industry participants to remain or become competitive.
“Even as LightSquared’s network has been delayed by the ongoing process in Washington, dozens of American companies — big and small — continue to seek access to our network,” Boulben said in a statement issued Dec. 9. “These contracts demonstrate the magnitude of the pent-up market demand for an alternative wireless broadband solution. LightSquared’s success is not just about LightSquared. It’s about enabling the success of other companies as well.”
The 4G LTE wholesaler’s customers include well-known wireless companies like Sprint to smaller, regional carriers, such as Leap Wireless, Elevate and C Spire. LightSquared also inked contracts with rural carrier SI Wireless and a slew of national and online retailers, including Best Buy and Simplexity.
LightSquared CEO Sanjiv Ahuja has been at the front lines of his company’s political and enterprise battles. Armed with studies emphasizing how low broadband usage remains in several U.S. states, Ahuja believes LightSquared’s partnerships will improve access to underserved communities across the country and help contribute to the U.S. government’s goal of making broadband available to 98 percent of Americans within five years.
“Imagine a wireless industry that fosters innovation, competition and entrepreneurship, and connects those on the wrong side of the digital divide. With a unique business model and competitive wholesale pricing structure, LightSquared is poised to make this a reality, and we’re thrilled that such a broad and diverse group of companies is joining us on this journey to transform the wireless landscape,” Ahuja said in a statement to Satellite News.
Late last month, the company promoted the testimony of a group of experts at a forum convened by Roll Call to discuss America’s spectrum crunch. The event, co-sponsored by LightSquared and the Information Technology & Innovation Foundation, aimed to focus attention to the demand for support the nation’s escalating use of smart phones, tablets and personal computers.
LightSquared’s allies in Congress and the CTIA spoke in support of the company’s potential to provide the critical spectrum resource. “If we want to have the future we all think about and want to have, we need to have more spectrum, more wireless broadband,” Information Technology and Innovation Foundation (ITIF) Spokesman Rob Atkinson said at the event.
Congressman Cliff Stearns (R-Fla.) also spoke at the event and said he was disturbed that the United States falls behind South Korea, Romania, Bulgaria and Lithuania in download speeds. “We should be doing something about it. There is a spectrum crunch … and it’s really a little bit embarrassing, even though we’re a large economic power, that we have, as a country, allowed this to occur.”
To be part of the solution, LightSquared still needs to convince the FCC. In September, the commission delayed the launch of LightSquared’s L-band terrestrial and satellite 4G LTE network, prohibiting the company to commence ATC operations until the commission, in consultation with the National Telecommunications and Information Administration (NTIA) finds that the network’s GPS interference issues have resolved.
The FCC notice supported a request made by the U.S. Department of Commerce for further testing of LightSquared’s proposed broadband network and its impact on global positioning systems. “Following extensive comments received as a result of the technical working group process required by the International Bureau’s Order and Authorization dated Jan. 26, 2011, the FCC, in consultation with NTIA, has determined that additional targeted testing is needed to ensure that any potential commercial terrestrial services offered by LightSquared will not cause harmful interference to GPS operations,” the FCC said in the notice.
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