RESTON, Va., January 28, 2011 – LightSquared, the nation’s first wholesale-only integrated wireless broadband and satellite network, today announced it has delivered notice to Inmarsat for the triggering of Phase 2 the Cooperation Agreement between the two companies.
Under the Cooperation Agreement originally signed in December 2007, Inmarsat and LightSquared designed a two-phase plan aimed at increasing the amount of contiguous spectrum available to both parties and at providing LightSquared with enhanced operational flexibility for the deployment of its 4G-LTE integrated terrestrial and satellite network.
LightSquared triggered Phase 1 of the Cooperation Agreement in August 2010. For Phase 1, LightSquared is currently making a series of payments to Inmarsat totaling $337.5 (USD) million.
Under the provisions of Phase 2 of the agreement, Inmarsat will make additional spectrum available to LightSquared at an annual cost of $115 million (USD) that will increase at a rate of 3 percent yearly.
“We are pleased to report that LightSquared is experiencing very strong demand for capacity on its 4G-LTE wholesale network, and therefore we have decided to accelerate the triggering of Phase 2 of our agreement with Inmarsat,” said Sanjiv Ahuja, chairman and chief executive officer of LightSquared. “When Phase 2 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 to operate its nationwide integrated 4G-LTE and satellite network.”
“LightSquared will work diligently and cooperatively with Inmarsat and its user community to coordinate implementation of all phases of this cooperation agreement to insure a seamless transition,” Ahuja said.
About Inmarsat
Inmarsat plc (LSE: ISAT) is the leading provider of global mobile satellite communications services. Since 1979, Inmarsat has been providing reliable voice and high-speed data communications to governments, enterprises and other organizations, with a range of services that can be used on land, at sea or in the air. The company’s services are delivered through a global network of more than 400 distribution partners and service providers operating in 100 countries. For the year ended 31 December 2009, Inmarsat plc had total revenue of US$1,038.1m (2008: US$996.7m) with an EBITDA of US$594.2m (2008: US$531.2m). For more information, please visit www.inmarsat.com.
About LightSquared
LightSquared’s mission is to revolutionize the U.S. wireless industry. Through the creation of the first-ever wholesale-only nationwide 4G-LTE network complemented by satellite coverage, LightSquared offers people the speed, value, and reliability of universal broadband connectivity, wherever they are in the United States. Through its wholesale-only business model, those without their own wireless network or who have limited geographic coverage or spectrum can develop and sell their own devices, applications, and services using LightSquared’s open 4G network—at a competitive cost and without retail competition from LightSquared.
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For further information about LightSquared, please go to www.Lightsquared.com.
CONTACTS:
Amy Rosenberg
Burson-Marsteller
Tel: +1 (212) 614-4558
Tom Surface
LightSquared
Tel: +1 (703) 390-1579
Forward Looking Statement
This release contains forward-looking statements and information regarding LightSquared and its business. Such statements are based on the current expectations and certain assumptions of LightSquared’s management and are, therefore, subject to certain risks and uncertainties. The forward-looking statements expressed herein relate only to information as of the date of this release. LightSquared has no obligation to update these forward-looking statements to reflect events or circumstances after the date of this release, nor is there any assurance that the plans or strategies discussed in this release will not change.
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