LightSquared aims to stay afloat following Inmarsat deal
Embattled wireless broadband firm LightSquared has agreed to a deal which will extend its deadline for making payments to its satellite communications partner Inmarsat, v3.co.uk reported.
The two firms said that they have agreed to defer the $29.6m payment Inmarsat was due to receive from LightSquared for use of its spectrum space as the companies moved forward with their planned wireless network.
LightSquared will have until April of 2014 to deliver the payment to Inmarsat and resume the project.
The deal will give new life to LightSquared's controversial plans to launch a combined land and satellite network. The company had previously contracted with US carrier Sprint on a $9bn deal which promised to deliver a faster and larger network than previous wireless broadband platforms.
The plan dealt a crushing blower earlier this year when the proposed network failed interference tests. Researchers believe that if deployed, the LightSquared network would hamper the operation of the GPS system. The company has disputed the claim and asked for a new series of tests from government agencies.
Following the failed test, Sprint withdrew from the deal, putting LightSquared's immediate future in doubt.
"We remain committed to fulfilling our business vision to bring world-class wireless broadband connectivity to millions of Americans," said LightSquared chief executive Doug Smith.
"The renewed partnership between LightSquared and Inmarsat strengthens the opportunity for consumers across the U.S. to obtain the benefits of increased competition that LightSquared will bring to the broadband wireless market, and the only viable opportunity for rural areas of the country to obtain access to reliable broadband wireless service."
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