LightSquared, a U.S-based broadband and satellite network provider, has said that it will accelerate the execution of its spectrum co-operation plan with Inmarsat. The move comes after a strong market demand for its 4G wholesale network and the eagerness of the British satellite firm to provide that spectrum.
Inmarsat operates a number of satellites providing voice, data and broadband services to shipping and aircraft. LightSquared is working with the company to increase the amount of spectrum available and to start 4G services.
The company said in a statement that it intends to accelerate the implementation of Phase 2 of the Inmarsat Cooperation Agreement to the fourth quarter of this year. This will enable it to improve its access to spectrum controlled by Inmarsat. The company first expressed the plans of boosting its spectrum in August.
LightSquared is looking for an increased capacity to its network as it has closed an $850 million credit facility by UBS. The company has signed its first wholesale agreements and is in negotiations with a number of potential customers. Insiders say the negotiations have reached the advance stage.
Inmarsat did not see a boost from this statement as its shares saw a dip of 3.7 percent in early morning trading. The plummet followed a newspaper report which said that Harbinger Capital, a U.S. hedge fund, was planning to sell a 10 percent stake in the company.
Harbinger has said that it has not reached a decision yet although it is reviewing its options, including its shares in Inmarsat.
