LightSquared misses new payment to Inmarsat

News Wireless United States 3 APR 2012
LightSquared misses new payment to Inmarsat
Satellite operator Inmarsat announced that LightSquared has missed a second payment on their spectrum cooperation agreement. A payment of USD 56.25 million was missed already in February, and LightSquared missed a second deadline of 31 March to pay Inmarsat USD 29.6 million. Inmarsat said it notified LightSquared of the missed deadline, and the company now has 60 days to remedy the situation. Inmarsat said it also confirmed the completion of phase 1.5 in their cooperation agreement in a notice to LightSquared on 30 March, triggering another milestone payment due on 04 April. As the first payments for milestones in phases 1 and 2 were not met, the latest payment is "highly uncertain", Inmarsat said. The company said it remains in talks with LightSquared on the future of their cooperation agreement and will not make any further public statements about eventual non-payments. LightSquared's plans for a hybrid mobile and satellite network in the US have been up for question since the FCC withdrew preliminary approval for the network due to interference with GPS services. The company is fighting the FCC decision in the hopes of gong ahead with the network, but is also struggling to ensure continued financing the project. Sprint last month terminated a spectrum-sharing agreement with LightSquared.

Categories:

Mobile

Companies:

FCC,  Inmarsat,  LightSquared

Countries:

United States

Tags:

Network Access, Wireless, Wholesale, Finance, Satellite, Contract & orders

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