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Inmarsat to get $340m in LightSquared pact
19 August 2010
Inmarsat has won a $340m contract from LightSquared to provide the satellite capacity for its US mobile network
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Inmarsat
LightSquared
Harbinger
mobile broadband
Inmarsat will receive about $340 million over the next 18 months as part of a cooperation agreement with LightSquared.
The payment follows the triggering of the first phase of a pact signed in 2007 by Inmarsat and SkyTerra Communications, the US company that has been called LightSquared since its acquisition by Harbinger.
Under the pact, UK-based Inmarsat will restructure its L-band radio spectrum covering North America so that LightSquared can develop and launch 4G mobile broadband across the US. LightSquared will merge satellite and terrestrial communications to create a national network.
Inmarsat has already received an initial $81 million, which will be followed by five instalments of $40 million, to be paid every quarter. At completion, it will get a final payment of $56 million.
As part of the second phase, Inmarsat will get an annual payment of $115 million when LightSquared takes up its option to use its services. GTB