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UBS lends $750m to LightSquared
16 September 2010
Sanjiv Ahuja’s wholesale LTE project in the US, LightSquared, is reported to have borrowed $750m from UBS
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LightSquared
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LightSquared has secured a $750 million four-year loan from UBS, according to US reports. The loan from Zurich-based UBS is secured by assets and subsidiaries of LightSquared.
The wireless venture, headed by former Orange chief Sanjiv Ahuja, is planning to use the proceeds to build a 4G network to offer wireless service to 260 million people in the US over the next five years.
The Virginia-based telecom operator plans to begin trials in Baltimore, Phoenix, Las Vegas and Denver by early 2011. It has also committed to spend $7 billion over eight years through an agreement with Nokia Siemens Networks to build and manage the network, though the company will also use satellites to deliver LTE to rural parts of the US.
The venture plans to sell capacity on its network to existing mobile operators and to other technology companies. It is building its network for as many as nine US metro areas by the end of next year. GTB
Read GTB’s interview with Sanjiv Ahuja, conducted before the UBS deal