LightSquared misses second Inmarsat payment deadline

3 Apr 2012

LightSquared, the ill-fated USD7 billion open-access Long Term Evolution (LTE) venture backed by billionaire hedge fund manager Philip Falcone, has reportedly failed to make the second payment of USD29.6 million it owes to British satellite partner Inmarsat for the use of its radio spectrum in the US. The UK-based company reported a previous non-payment, of USD56 million, back in February. Inmarsat has indicated that, although it remains in discussions with LightSquared regarding the future of the cooperation agreement, it cannot provide any assurance that this dialogue will result in any further payments being received from the stricken US LTE firm.

As previously reported by TeleGeography’s CommsUpdate, in February this year the FCC declared that Lightsquared’s use of non-traditional spectrum in the 1.4GHz and 1.6GHz bands interfered with GPS satellite navigation devices and aircraft flight safety equipment. Subsequent weeks have seen the stricken company beset with myriad financial and legal problems.

United States, Inmarsat, Ligado Networks (formerly LightSquared)