LightSquared, which has decided to install a nationwide hybrid wireless/satellite network in the U.S. to offer next-generation (4G) Long-term Evolution (LTE) service, has declared the name of its various vendors. LightSquared is a new telecom venture launched by the hedge fund Harbinger Capital Partners, which has a total corpus of $9 billion. This network is expected to launch in early 2011.
LightSquared will install a wholesale super-fast LTE network which can be shared by other telecom operators, cable MSOs, and satellite service providers. With this network, LightSquared will directly compete with existing 4G wholesalers Clearwire Corp. (CLWR), offering the WiMAX network, which competes with LTE. LightSquared will also compete with the upcoming nationwide LTE networks of telecom giants Verizon Wireless (VZ) and AT&T (T).
LightSquared has selected Nokia Siemens Network; a 50-50 joint venture of Nokia Corp. (NOK) and Siemens AG (SI) as its infrastructure solutions provider. Nokia Siemens Networks has won an 8-year contract of over $7 billion to install and maintain around 40,000 base stations that will cover 92% of the U.S. population by 2015.LightSquared venture aims to provide its LTE services to 260 million people within the next five years in the U.S.Several analysts opined that by far this deal is the single largest contract in the global wireless gear manufacturing industry.
LightSquared has selected Nokia, the largest mobile phone manufacturer of the world, to supply the handset/tablets capable of supporting this hybrid network. Nokia will supply data-centric products for the LightSquared network.
Qualcomm Inc.(QCOM) has been selected as the chipset vendor of LightSquared network enabled devices. The company has developed a satellite air interface technology to create satellite network environment in all the devices that will run on LightSquared network. Qualcomm is integrating the L-Band LTE technology into its chipset platform. Furthermore, LightSquared also selected AnyDATA and BandRich as its two vendors to supply embedded modules, USB data modems, and other devices which will launch during the second half of 2011.
In last July, LightSquared received $1.75 billion of equity funding and in early October, the venture secured another $850 million as debt. Several analysts estimate that this telecom venture needs to raise another $6 billion in order to install its wireless/satellite network. LightSquared has also declared that it has already signed up its first wholesale customer but has not disclosed its name.
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