Ligado Inmarsat Agreement

CélinePILON > Ligado Inmarsat Agreement
Non classé / 26 septembre 2021 / Posted by celine

The company (as LightSquared) entered into a cooperation agreement in 2007 with Inmarsat, a British satellite communications company that reorganized the L-band spectrum, allowing it to use a wider and consistent frequency range. [11] Potential interference issues at that time prevented LightSquared from providing the network. [12] According to the Telegraph, which first covered the story, Oaktree believes the deal is worth more than its current $6 billion price due to a lucrative spectrum licensing deal Inmarsat has with US satellite communications company Ligado. As part of the agreement between the two, Ligado will use the portion of the radio frequency spectrum it leases from Inmarsat to create a wireless network in the United States, which, in turn, will accelerate the development of high-speed 5G connectivity. UPDATE (26.11.): Another interesting question is the state of the 650MHz EBS (38MHz) spectrum that NextWave holdco controls in New York. I would expect frantic tenders to ensure access to this spectrum if DISH proves to be the winner of much of the AWS-3 spectrum in New York. Of course, Ergen has probably thought about it before, and I think he might even have made a deal to buy that spectrum before the AWS-3 auction, making it harder for Verizon and AT&T to close their potential frequency gap in the New York market. While Ergen`s actions are clearly irritating to the judges involved, they may not be entirely surprising, so Judge Drain`s memo is what it tells us about the terms of LightSquared`s new Chapter 11 plan. Of course, the memo does not specify the terms of the agreement reached by all parties except SPSO/Ergen, but it is quite clear what these conditions are when reading between the lines. UPDATE (7/15): Yesterday, LightSquared`s special committee finally understood the reality of the situation by reaching an agreement with Charlie Ergen to turn his existing debt into a dominant part of the new first mortgage debt and obtain an additional first pledge right of $300 million, which will replace JP Morgan in the new capital structure. It has been said that there will be $1.6 billion in new pledges, with $1.3 billion from Ergen, and I think the remaining $300 million will come from Fortress, which will return its first pledges. It is unclear whether Cerberus will also invest in the new second tranche of the deposit and it certainly seems very implausible that Harbinger would agree to his proposed treatment under the new plan, given that this would prevent Harbinger from asserting claims against the FCC or Ergen and that, as a result, Falcone`s likelihood of recovery will be significantly reduced.

So it seems very likely that, as I predicted, the next phase of the insolvency proceedings will be a dispute between LightSquared and Harbinger, while Ergen just has to sit back and take advantage of Phil Falcone`s discomfort. However, this agreement also requires Ligado to pay millions of dollars to Inmarsat each year to access its portion of the L-band. The current financial situation between the two companies is unclear, given that Inmarsat is now a private company. But Farrar estimated that Ligado Inmarsat has so far paid about $US 1 billion and will likely receive an additional $US 200 million if it gets FCC approval for its plans. NTIA notes that « the agencies do not fully agree that the uplink evaluation appropriately address these issues to support a recommendation to NTIA and the FCC » and « NTIA agrees with DOT that the FCC should ensure that lightSquared`s proposal for a handset is properly supported by data and a full understanding of the potential impact on GPS receivers. » While this seems to irritate the judges involved, Ergen`s actions may not be entirely surprising, so Judge Drain`s memo is what it tells us about the terms of LightSquared`s new plan. . . .