updated 02:20 pm EDT, Fri April 20, 2012
LightSquared reworks contract with Inmarsat
LightSquared on Friday changed its agreement with Inmarsat, with the latter effectively extending the deadline for the payments LightSquared is responsible for. The company has already missed its $56.25 million Phase 1 payment, with Phase 2 due on April 1, 2014. The extension will give LightSquared time to try and resolve regulatory issues that are keeping it from launching its 4G LTE network.
The FCC set back LightSquared's plans for a nationwide 4G LTE network by ruling that its proposed frequency bands would interfere with GPS signals and therefore isn't allowed to launch.
Another former LightSquared partner, Sprint, recently cut its ties with the company, refunding its $65 million prepayment. The startup estimated about 40,000 towers would be needed to cover the country, at a cost of more than $13 billion.