Can Ivan Seidenberg, a former chairman of Verizon Communications Inc., and Reed Hundt, a former Federal Communications Commission chairman, create a successful business out of LightSquared spectrum? We are going to get a chance to find out.
LightSquared, emerging from bankruptcy, has asked U.S. regulators to clear the way for another effort to create a mobile high speed access service--presumably using a wholesale model--covering the United States.
LightSquared asked the FCC to transfer spectrum licenses to the entity to be known as New LightSquared.
In what might be seen as an unusual twist, Charlie Ergen, whose firm Dish Network owns a huge block of spectrum licenses, was a major personal creditor to LightSquared. In fact, Ergen had been the controlling investor in LightSquared, with a stake estimated at 60 percent.
As part of the reorganization, Ergen apparently has been bought out, for a sum possibly as much as $1.4 billion.
As part of the reorganization, Ergen apparently has been bought out, for a sum possibly as much as $1.4 billion.
Separately, Dish Network itself must create a retail mobile business, sell the assets or return the licenses to the government.
But LightSquared seems to be exploring a “niche” network supporting industrial or public safety apps. Others have tried that approach with little success, and LightSquared would be one step further removed from retail services if it chooses to offer wholesale capacity to the retailers of such services.
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