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Nokia Scores $7 Billion Deal To Build LTE Network
Harbinger LTE/Satellite network project rattles forward
by Karl Bode 05:37PM Tuesday Jul 20 2010
As we mentioned in March, Harbinger Capital Partners owns a satellite subsidiary by the name of SkyTerra -- who just so happens to have the spectrum necessary to build a national LTE network. Harbinger wants to go wholesale, proposing conditions to the FCC that would prevent AT&T or Verizon from using the new company's spectrum without FCC approval, or consuming more than 25% of the new network's total traffic. GigaOM's Stacey Higginbotham, who is doing the best job covering this story of anyone we've seen, notes that Nokia has won the $7 billion contract to build the LTE network, now officially named "Lightsquared":
quote:
In a deal valued at $7 billion over the next eight years, LightSquared, backed by Harbinger Capital Partners, has hired Nokia Siemens Network to create a wholesale 4G wireless network on its behalf using satellite and terrestrial coverage that will cover 260 million people in the U.S. by 2015. LightSquared is the new name for mobile satellite communications service SkyTerra, and along with the NSN deal, the company also announced its executive team, as well as the fact that it had raised part of $1.75 billion in debt and equity from unnamed investors to begin construction of the network.
As Higginbotham notes, there's a lot of moving parts necessary for success, and the project faces tight spectrum holdings, as well as reliance on (in part) satellite broadband connectivity -- a sector most of our readers know well is littered with failures on the broadband front. Lightquared sent us an e-mail this afternoon claiming the network will consist of approximately 40,000 cellular base stations and cover 92 percent of the U.S. population by 2015. There's more detail at the new Lightsquared website.

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brianiscool

join:2000-08-16
Tampa, FL
kudos:1

Nokia - Eating up the cell phone market.

They own the phones now they are building the cellular networks.

KrK
Heavy Artillery For The Little Guy
Premium
join:2000-01-17
Tulsa, OK

Re: Nokia - Eating up the cell phone market.

This could also be a game changer, if LTE is available coast to coast then finally the open handset market could start to kick in. (As in buy any phone you like and you can use 4G anywhere you like.) Problem is, of course, if they will be a decent carrier or not.
--
"Fascism should more properly be called corporatism because it is the merger of state and corporate power." -- Benito Mussolini
tdouglas22

join:2001-09-25
Memphis, TN

Re: Nokia - Eating up the cell phone market.

If they can get the subscribers and their tech is up to par for reasonable prices... they can be a game changer. Hell Cricket Wireless was a very small operation and they have grown to actually be a credible threat to mobile carriers.
Youngjm

join:2002-04-01
Ada, MI
We may find ourselves not liking the price of that phone. We all hate the contracts that come with the big four but that also comes with phone subsidies and better phones at better prices. Choices!

KrK
Heavy Artillery For The Little Guy
Premium
join:2000-01-17
Tulsa, OK

Re: Nokia - Eating up the cell phone market.

True, but...

Better to have the choice(s) and not want some of them then to want the choices and not have them!
DMS1

join:2005-04-06
Plano, TX
said by brianiscool:

They own the phones now they are building the cellular networks.
Nokia and Nokia-Siemens Networks (NSN) are not the same company.
BosstonesOwn

join:2002-12-15
Wakefield, MA
They have been making the network gear for quite some time.
bcltoys

join:2008-07-21
Lost today

Sat/internet

Is it going to suck like sat/internet does now.

Camelot One
Premium,MVM
join:2001-11-21
Greenwood, IN
kudos:1

I'm not sure I've ever seen a story so incorrectly reported

Every major news outlet is running stories on this, and aside from a handful of tech sites, everyone has it completely wrong. Some (my local TV news) are saying they are building a replacement for the Satellite TV broadband network, to compete with DirecWay!
hottboiinnc
ME

join:2003-10-15
Cleveland, OH

Re: I'm not sure I've ever seen a story so incorrectly reported

i wanna know why they're going to use Sat HSD?

Nobody will know until this is completely done or they're offering service.
caco
Premium
join:2005-03-10
Whittier, AK

I guess we can't get to 100% coverage

I guess the new it phrase is 90 + percentage of population. So basically they are over lapping the same folks that get service from the big four. Anyone think the price is gonna be any cheaper?

I guess it will be great if you live in a major population center.
--
Politicians and diapers have one thing in common. They should both be changed regularly, and for the same reason.

vpoko
Premium
join:2003-07-03
Boston, MA

1 edit

Re: I guess we can't get to 100% coverage

said by caco:

I guess the new it phrase is 90 + percentage of population. So basically they are over lapping the same folks that get service from the big four. Anyone think the price is gonna be any cheaper?

I guess it will be great if you live in a major population center.
And that's the way it goes, trying to cover some really out of the way areas where a tower will only server a few subscribers doesn't seem feasable with current technology and costs.
nonymous
Premium
join:2003-09-08
Glendale, AZ

Maybe the price will not be cheaper but CAPS may be higher

We can only hope. If they are going for more data than phone calls as a market maybe design a more usable data product?