LightSquared has officially exited Chapter 11 and settled its lawsuit with Deere, paving the way for it to roll out a wholesale mobile network.
Under the terms of the settlement, LightSquared has agreed to reduce out-of-band emissions – emissions on frequencies immediately outside an allocated band that are caused by modulation – and to forego using spectrum adjacent to Deere’s GPS airwaves for its terrestrial network.
In return, Deere has agreed to not object to the deployment of LightSquared’s terrestrial mobile network, which will operate in the 1627-1680 MHz and 1526-1536 MHz bands.
"We believe this agreement sets forth the framework that enables GPS and broadband to peacefully coexist, and we will continue to work with industry and government stakeholders to reach consensus that enables this spectrum to be utilised," said LightSquared C EO Doug Smith, in a statement on Tuesday.
The settlement was reached a day after LightSquared exited bankruptcy protection.
"Although the last three and-a-half years have been challenging, I am grateful for the skill and professionalism that our employees have demonstrated each and every day," Smith said.
In February 2012, the U.S. Federal Communications Commission (FCC) withdrew its support for LightSquared’s proposal to build a combined satellite and terrestrial LTE network and operate it on a wholesale basis following complaints from GPS providers Deere, Garmin and Trimble that the network would interfere with their signals.
Without a network, LightSquared had no business, and it filed for Chapter 11 in May that year. In 2013, the company sued the GPS firms for not disclosing the interference issues earlier.
In February this year, shortly before LightSquared’s bankruptcy restructuring plan was approved, a judge dismissed most of LightSquared’s claims against the GPS firms, and by the summer the two sides had begun working towards a settlement.
Late last week, the FCC approved the transfer of LightSquared’s spectrum to a new entity, called New LightSquared.
The newly reorganised company is controlled by equity firms Fortress Investment and Centerbridge Partners, as well as JPMorgan. Fortress owns 26.2%, Centerbridge 8.1%, and JPMorgan 21.25%. The remaining 44.45% is held by LightSquared’s original backer, Philip Falcone’s Harbinger Capital.
"As mobile broadband demand continues to grow, the U.S. wireless industry needs more spectrum now. Policymakers must consider all near-term options to increase spectrum availability, and our mid-band spectrum is a key part of the equation," said Smith. "Mid-band spectrum is ideal for mobile broadband as it offers a combination of coverage and capacity that is essential to the accelerati on of next-generation mobile networks."
