LONDON (Alliance News) - Satellite communications provider Inmarsat PLC on Friday said Ligado Networks has elected the 30 mega hertz option under the cooperation agreement between the two.
Inmarsat said it remains in talks with Ligado around the details of the plan and a consequent change in payments under the agreement between the pair.
Inmarsat entered into a cooperated agreement with Ligado, then called LightSquared, in 2007, as part of LightSquared's plans to develop a 4G network integrated with satellite coverage in the US.
However, revenue from LightSquared has been a source of uncertainty for Inmarsat, which it had said early in March would be determined by the end of the first quarter of 2016.
In 2012 the US Federal Communications Commissioned moved to bar LightSquared's planned network over concerns of interference effecting signals, and in May of that year, the company filed for bankruptcy protection. This meant that for much of 2015, payments from LightSquared under the agreement with Inmarsat were subject to significant uncertainty.
However, LightSquared emerged from bankruptcy protection in December of 2015, raising new capital. Inmarsat said last month in its 2015 results that LightSquared must decide by the end of March how much spectrum it wishes to use under the current cooperation agreement.
LightSquared still needs to get FCC approval to build and operate its network, so Inmarsat said last month it was unable to provide guidance on the level of revenue coming from LightSquared in the future, or the level to which it will need to reorganise its spectrum in relation to the deal, with accompanying costs.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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