LONDON--(BUSINESS WIRE)--Inmarsat plc (LSE: ISAT.L), the leading provider of global mobile satellite communications services, today announced that it has received notice from LightSquared triggering Phase 2 of the Cooperation Agreement between Inmarsat and LightSquared.
Under Phase 2 of the Cooperation Agreement Inmarsat will support a spectrum plan that increases the total capacity available through the LightSquared network. In return Inmarsat will immediately begin to receive payments of US$115m per annum, payable quarterly in advance. Phase 2 of the Cooperation Agreement has an initial minimum commitment period of 5 years. In connection with the notice announced today, Inmarsat has received a first partial quarterly payment of US$20.1m.
Perry Melton, Inmarsat’s Chief Operating Officer said, “In preparation for the notice received today, Inmarsat has already initiated programmes to ensure our customers are protected from interference risks and has conducted analysis of the issues over an extended period. Inmarsat is confident that the effects on customers will be minimal and, where needed, will be dealt with responsibly.”
The notice for Phase 2 follows the notice given in August 2010 for Phase 1. Under Phase 1 Inmarsat and LightSquared agreed to a plan to enable the re-banding and efficient reuse of L-band radio spectrum covering North America. Phase 1, which is currently being implemented, is designed to increase the contiguous spectrum available to support the deployment of 4G ancillary terrestrial component (“ATC”) services and to protect the continued deployment and growth of MSS activities in North America.
About Inmarsat
Inmarsat plc (LSE: ISAT) is the leading provider of global mobile satellite communications services. Since 1979, Inmarsat has been providing reliable voice and high-speed data communications to governments, enterprises and other organizations, with a range of services that can be used on land, at sea or in the air. The company's services are delivered through a global network of more than 400 distribution partners and service providers operating in 100 countries. For the year ended 31 December 2009, Inmarsat plc had total revenue of US$1,038.1m (2008: US$996.7m) with an EBITDA of US$594.2m (2008: US$531.2m). For more information, please visit www.inmarsat.com.
About LightSquared
LightSquared’s mission is to revolutionize the U.S. wireless industry. Through the creation of the first-ever wholesale-only nationwide 4G-LTE network complemented by satellite coverage, LightSquared offers people the speed, value, and reliability of universal broadband connectivity, wherever they are in the United States. Through its wholesale-only business model, those without their own wireless network or who have limited geographic coverage or spectrum can develop and sell their own devices, applications, and services using LightSquared’s open 4G network—at a competitive cost and without retail competition from LightSquared. For further information about LightSquared, please go to www.LightSquared.com.