Satellite/terrestrial 4G-LTE venture LightSquared is seeking to adjust the rules governing the group’s ATC licence to allow its wholesalers to offer terrestrial-only services.
The FCC granted SkyTerra, LightSquared’s predecessor, the ATC licence six…
Satellite/terrestrial 4G-LTE venture LightSquared is seeking to adjust the rules governing the group’s ATC licence to allow its wholesalers to offer terrestrial-only services.
The FCC granted SkyTerra, LightSquared’s predecessor, the ATC licence six years ago on the basis that it was to be used in conjunction with a fully integrated satellite/terrestrial network.
Submitting its revised business plan to the FCC on 18 November, VP for regulatory affairs Jeffrey Carlisle insisted the venture will continue to offer a satellite-only or integrated service to retailers.
“Although LightSquared’s retailer customers will have the ability to offer terrestrial-only plans to their own end users, LightSquared will not provide any preferential terms for customers that offer such service,” Carlisle wrote.
“To the contrary, under LightSquared’s integrated pricing, customers acquiring terrestrial capacity from LightSquared will have to pay for the satellite capacity that comes with it, whether they use the satellite capacity or not.
“Moreover, LightSquared commits that it will not institute policies or practices that would discourage its customers from offering integrated MSS/ATC service.”
Speaking to SatelliteFinance, Carlisle said he was optimistic the FCC would move quickly to approve the updated business plan, dismissing the comments received in opposition so far as statutorily wrong.
He said he was unable to offer an exact timeframe, but was encouraged by an accelerated application process from the FCC, which asked for comments no later than 29 November and replies no later than 6 December.
Some industry observers have criticized the FCC, which on 8 November enabled the launch of LightSquared’s first satellite with a deadline extension, of double standards, given that ATC licence holder Globalstar has been denied similar regulatory adjustments in the past.
In related news, LightSquared is expected to trigger Phase 2 of a spectrum leasing agreement with Inmarsat before the end of the year. The move, which follows an agreement (Phase 1) earlier this year to increase the contiguous L-band spectrum of both parties, will see the satellite operator lease the venture some of its spectrum at a cost of US$115m per year.
It is understood that the aforementioned FCC application process will not conflict with plans to initiate Phase 2.
