& cplSiteName &

Harbinger Hatches LTE Challenger in US

Michelle Donegan
LR Mobile News Analysis
Michelle Donegan
7/20/2010
50%
50%

The idea hatched by private equity firm Harbinger Capital Partners LP to launch a national wholesale Long Term Evolution (LTE) network in the US looks more like a plan now that the company has gained some additional financing, selected an equipment supplier, set coverage goals, and put an executive team in place. (See Harbinger Picks NSN for US LTE Plans.)

But the new venture, called LightSquared , has not yet secured all the financing that it will eventually need to meet its ambitious mobile broadband plan to cover 92 percent of the US population by 2015.

LightSquared has tapped Nokia Networks to supply the radio access and core networking equipment as well as deploy and operate the LTE network in a deal worth $7 billion to the vendor over eight years. (See NSN Lands $7B LTE Deal in US .)

The company said today that is has secured $1.75 billion in debt and equity financing to fund the LTE project. And the new financing adds to the $2.9 billion of assets that Harbinger has already contributed to LightSquared.

Frank Boulben, LightSquared's chief marketing officer, tells Light Reading Mobile that the company will need more financing to meet its network build out goal for 2015. He says that the company has no plans to pursue US government broadband stimulus funds, but in the next couple of years, it will look to raise more debt and equity financing.

"As we build out the network, we will start to generate revenue... Our contract with Nokia Siemens will be funded by the cash flow generated by the business," says Boulben. "In the coming two years we'll be raising additional debt and equity to meet that target. It will be easier to raise additional financing based on operational milestones."

LightSquared's plan is to build out 40,000 base stations to cover 92 percent of the US population with an LTE network by 2015 and sell capacity on that network on a wholesale basis to other fixed or mobile service providers, retailers, device manufacturers, and content providers. The company also has to meet coverage requirements set by the Federal Communications Commission (FCC) that are attached to the spectrum that it uses: that is, LightSquared needs to cover 100 million people by the end of 2012; 145 million by the end of 2013; and 250 million by the end of 2015.

LightSquared has 59MHz of spectrum that is mostly in the 1.6GHz band, or "L-band," according to Boulben. The L-band can be used for satellite or terrestrial wireless networks.

Boulben explains that the company's relationship with Nokia Siemens will enable it to "exceed" the FCC's coverage milestones and roll out the network more quickly than expected. "Nokia Siemens has the workforce already on the ground in the US to deploy our network," he says.

What about devices?
Because LightSquared's network will be a combination of satellite and terrestrial LTE, it will need new dual-mode devices to run on it. The satellite portion of the network is intended to be a complement to the terrestrial LTE network and it will support voice and some low-bandwidth data like text messages and emails without attachments, says Boulben.

The company will announce in the fall a "series of partnerships" with mobile device chipset manufacturers, which will integrate both the satellite protocol used and LTE support at 1.6GHz in their silicon for the LTE devices, according to Boulben.

"The devices will look exactly the same as regular mainstream devices," he says.

LightSquared will launch trial LTE networks in the first half of next year in Denver, Phoenix, Las Vegas, and Baltimore. And the commercial launch is planned for the second half of 2011.

— Michelle Donegan, European Editor, Light Reading Mobile

(4)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
Gabriel Brown
50%
50%
Gabriel Brown,
User Rank: Light Sabre
12/5/2012 | 4:29:21 PM
re: Harbinger Hatches LTE Challenger in US


Is that clear then, the devices have to also support satellite? Or is that something they can fudge later?

James_B_Crawshaw
50%
50%
James_B_Crawshaw,
User Rank: Blogger
12/5/2012 | 4:29:21 PM
re: Harbinger Hatches LTE Challenger in US


Yes but how much will they cost? I would have thought a custom radio chip (for the satellite component) will add $20+ dollars. And that is assuming mass market volumes. I doubt Apple, RIM, Nokia, etc will be rushing to make a phone for this technology. I think Lightsquare will need to get a few ODMs to make a few custom devices. But why would consumers give up their iPhones and Blackberries to switch to this network? Satellite coverage when they are up a mountain? Niche market. They will have to undercut on service costs and give the phones away for free. If they spend $7bn on capex they might need to spend the same again on customer acquisition. 

James_B_Crawshaw
50%
50%
James_B_Crawshaw,
User Rank: Blogger
12/5/2012 | 4:29:20 PM
re: Harbinger Hatches LTE Challenger in US


That is the current legislation. Harbinger and other satellite spectrum owners have been lobbying hard for the FCC to change this. But I imagine AT&T and Verizon are lobbying just as hard for no change. Who do you think has the bigger lobby?

Honestly
50%
50%
Honestly,
User Rank: Light Beer
12/5/2012 | 4:29:14 PM
re: Harbinger Hatches LTE Challenger in US


This was the last sentence in a Business Journal Article.  Terre Star is a Harbinger company and part of Lightsquared.  This pie in the sky (big idea) is a good one, but there are many questions and mile stones that need to be met.


 




<div id="storycontent">

Sprint is locked in a dispute with satellite companies&nbsp;ICO Global Communications&nbsp;(Nasdaq: ICOG) and&nbsp;TerreStar Corp.&nbsp;(Nasdaq: TSTR), which Sprint claims are required to reimburse part of the project&rsquo;s $750 million. The companies have denied they are obligated to pay and are awaiting a final decision by the FCC.

</div>


Read more:&nbsp;Sprint Nextel wraps up $750M project to add U.S. wireless capacity - Kansas City Business Journal&nbsp;



&nbsp;


&nbsp;

From The Founder
Either we perform a complete 'factory reset' on the way the telecom industry creates and deploys virtualization, or we face the consequences.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
LRTV Custom TV
The Urgency of Commercial 5G Services

4|26|17   |     |   (0) comments


The progress of 5G has been closely monitored in the industry. At the 2017 Brooklyn 5G Summit, the sense of urgency for a commercial 5G launch had started to surface among operators.
Women in Comms Introduction Videos
How Diversity Helps Comcast Mirror Its Customer Base

4|26|17   |   2:55   |   (0) comments


Diversity brings innovation, creative ideas and a way to reflect the broad spectrum of your customer base, Comcast Director of Customer Experience Jenelle Champlin says.
LRTV Huawei Video Resource Center
Mobile Operators & Video

4|25|17   |     |   (0) comments


Ovum's Ed Barton discusses the latest mobile operator strategies for mobile video.
LRTV Custom TV
Infinera Introduces Instant Network

4|20|17   |     |   (1) comment


Mike Capuano, vice president of marketing at Infinera, discusses the advancement from Instant Bandwidth to new Instant Network capabilities, which include Bandwidth License Pools, Moveable Licenses and Automated Capacity Engineering (ACE).
Women in Comms Introduction Videos
Vodafone's Eubank on Sponsors, Mentors & Moving On Up

4|19|17   |   4:25   |   (0) comments


Vodafone America's Head of Operations Kimberly Eubank breaks down the difference between a sponsor and a mentor and shares why both made a big difference in her career.
LRTV Custom TV
NYC Auto Show: Are We Smart Yet?

4|18|17   |     |   (0) comments


The auto industry is facing some big transformations as electric vehicles, autonomous technology and connected cars are seen as the future of the industry. During the much-anticipated NY international auto show, there was an emergence of new technology and mobility service on the show floor. Aside from performance, brands like Lincoln, Hyundai, Honda, Mercedes and ...
LRTV Huawei Video Resource Center
The Impact of Video

4|18|17   |     |   (0) comments


David Mercer from Strategy Analytics discusses the impact of video on current strategies.
LRTV Custom TV
Pardeep Kohli Discusses Network Transformation & the Market Opportunity for the 'New' Mavenir Systems

4|13|17   |     |   (0) comments


In a brief discussion at MWC 2017, Heavy Reading analyst Adi Kishore talks to Pardeep Kohli, CEO, Mavenir Systems about the creation of the 'new Mavenir' and some of the key challenges facing operators in today's market. A key theme of the discussion centers around operator need for software-only, virtualized solutions and how they will need to adapt to ...
Women in Comms Introduction Videos
Tech Maverick Shares Her Tips for Gender Inclusivity

4|12|17   |   7:28   |   (0) comments


Wendy Hall Bohling, a corporate escapee, author and gender exclusivity consultant, tells her story of sexism, bias and progress along the road to gender equality in the workforce.
LRTV Huawei Video Resource Center
Huawei at MWC 2017

4|11|17   |     |   (0) comments


At Mobile World Congress 2017, the biggest mobile industry gathering of the year, Huawei showcased its new innovations and solutions with the theme "Open Road," which focuses on cloud, 5G, operation transformation, videos and consumer-oriented products. Its campaign has been recognized by three awards given by GSMA.
LRTV Custom TV
China Telecom NFV Infrastructure on RSD

4|6|17   |     |   (0) comments


Lynn Comp, senior director of market development of Intel, is joined by Chong Zhang, storage engineer at Inspur and Ou Li Yan, architect for technology strategies of China Telecom, for a discussion of what NFV brings.
LRTV Custom TV
Nokia's IMPACT Software Demo

4|6|17   |     |   (0) comments


Khamis Abulgubein of IoT market development at Nokia demonstrates IMPACT (intelligent management platform for all connected things), a software solution with a horizontal approach to managing any device on any application.
Upcoming Live Events
May 15-17, 2017, Austin Convention Center, Austin, TX
May 15, 2017, Brazos Hall - Austin, TX
May 15, 2017, Austin Convention Center - Austin, TX
June 6, 2017, The Joule Hotel, Dallas, TX
All Upcoming Live Events
Infographics
With the mobile ecosystem becoming increasingly vulnerable to security threats, AdaptiveMobile has laid out some of the key considerations for the wireless community.
Hot Topics
Surprise! AT&T Markets 4G Advances as '5G Evolution'
Dan Jones, Mobile Editor, 4/25/2017
Did Verizon Outbid AT&T for Straight Path?
Dan Jones, Mobile Editor, 4/25/2017
First Year TIPs the Scale Toward Success
Denise Culver, 4/24/2017
Verizon: Small Biz in Cybercrooks' Crosshairs
Carol Wilson, Editor-at-large, 4/27/2017
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
One of the nice bits of my job (other than the teeny tiny salary, obviously) is that I get to pick and choose who I interview for this slot on the Light Reading home ...
TEOCO Founder and CEO Atul Jain talks to Light Reading Founder and CEO Steve Saunders about the challenges around cost control and service monetization in the mobile and IoT sectors.
Live Digital Audio

Playing it safe can only get you so far. Sometimes the biggest bets have the biggest payouts, and that is true in your career as well. For this radio show, Caroline Chan, general manager of the 5G Infrastructure Division of the Network Platform Group at Intel, will share her own personal story of how she successfully took big bets to build a successful career, as well as offer advice on how you can do the same. We’ll cover everything from how to overcome fear and manage risk, how to be prepared for where technology is going in the future and how to structure your career in a way to ensure you keep progressing. Chan, a seasoned telecom veteran and effective risk taker herself, will also leave plenty of time to answer all your questions live on the air.