Harbinger-Skyterra $7 billion deal with Nokia gives AT&T Competition with LIGHTSQUARED

• Today marks the launch of LightSquared™, a new nationwide 4G-LTE wireless broadband network integrated with satellite coverage that will revolutionize communications in the United States. As the nation’s first wholesale-only integrated wireless broadband and satellite network, LightSquared will provide wireless broadband capacity to a diverse group of customers, including retailers; wireline and wireless communication service providers; cable operators; device manufacturers; web players; content providers; and many others. The LightSquared network will allow these partners to offer satellite-only, terrestrial-only, or integrated satellite-terestrial services to their end users. This wholesale-only business model ensures LightSquared has no conflict of interest with its customers. LightSquared seeks to transform the wireless broadband industry to one that fosters innovation, creativity, and freedom of choice via the first truly open and net neutral wireless network.
• First-ever wholesale nationwide 4G-LTE wireless broadband network integrated with satellite coverage allows partners to offer terrestrial-only, satellite-only, or integrated satellite-terrestrial services to their end users.
• Telecommunications luminary Sanjiv Ahuja becomes Chairman and CEO, joined by a seasoned management team
• First truly open and net neutral wireless network spurring the development of new wireless devices, applications, and services
• Unique wholesale-only business model avoids conflict of interest with customers
• LightSquared is announcing up to $1.75 billion in additional debt and equity financing
• LightSquared network build-out anticipated to generate more than 100,000 direct and indirect private sector jobs within five years

Harbinger Capital, a New York investment firm with extensive telecommunications holdings, plans to announce Tuesday a eight-year, $7 billion deal with Nokia Siemens Networks to build and operate a satellite and mobile broadband network for wireless providers and other businesses.

The new venture will feature the mobile high-speed Internet service developed by Nokia Siemens and rely on satellites and terrestrial spectrum that Harbinger acquired through its purchase of Reston-based SkyTerra earlier this year, according to an announcement scheduled for Tuesday morning. The partners plan to name the venture LightSquared and have selected Sanjiv Ahuja, a former chief executive of France Telecom’s Orange subsidiary, to run it.

With the deal, Harbinger hopes to meet important financing and coverage requirements set by the Federal Communications Commission as contigencies of the firm’s purchase of SkyTerra. Satisfying those requirements would allow Harbinger to join the race to provide broadband service to the growing horde of wireless customers who are hungry for faster and more powerful devices.

“With a strong management team and a world-class partner to build and manage the network, the business is well positioned to capitalize on key trends; demand for wireless broadband is growing at a rapid pace and there is an increasing need for additional network capacity and reach," said Philip Falcone, chief executive of Harbinger Capital.

In an interview, Ahuja said that LightSquared plans to launch in its first markets by the middle of next year and hopes to have 92 percent coverage of the United States by 2015. He said the venture sees its customer base as a wide-ranging group including wireless carriers, device makers, and retailers such as Best Buy and WalMart that want to provide high-speed mobile services.

"We see a great diversity of customers to put to use one or all three propositions we offer," Ahuja said. "That would be satellite only, satellite and terrestrial or only terrestrial. This is one of its kind."

Source : SkyTerra.com & The Washington Post.