Report: LightSquared Mulling IPO

LightSquared could try and go public as soon as this summer in a bid to raise more cash, according to a Reuters report.

The wire service reports that several unnamed sources are saying that the Harbinger Capital Partners LP -backed venture is mulling an initial public offering (IPO). One source says an offering could happen as early as this summer.

The move could help Philip Falcone's Harbinger Capital Partners hedge fund recoup some of its major investment in the wholesale operator. The fund has reportedly invested about half of its US$6 billion in capital in the bid to deploy a nationwide Long Term Evolution (LTE) network that rents 4G capacity to other providers.

Why this matters
An IPO for LightSquared would add another layer of complexity to the fledgling service provider's already over-loaded to-do list:

The company, based in Reston, Va., is trying to deploy the first major terrestrial 4G network in the L-Band frequency. Global positioning system (GPS) providers are already worried that this new network might interfere with existing receivers and take down GPS services. The Federal Communications Commission (FCC) has said that the operator has to work with the GPS industry to find and fix any problems with a final report on the situation due on June 15.

Meanwhile, the operator is busy preparing its LTE network. The FCC has mandated that it has to cover 100 million people in the U.S. by the end of 2012. The network is supposed to be nationwide by 2015.

For more
Keep up with the latest LightSquared news and issues below:

— Dan Jones, Site Editor, Light Reading Mobile

Be the first to post a comment regarding this story.
Sign In