Rumors up until this point had it that upstart telecommunications provider LightSquared had its sights set on obtaining its 4G network capacity from Sprint Nextel. Now, Bloomberg has reported that LightSquared intends to enter negotiations with AT&T Mobility. Under the terms of the deal, LightSquared would pay for access to AT&T’s new 4G LTE network, which is rolling out this summer, whenever it requires extra spectrum space. The companies have made it clear that the deal is not yet final.
LightSquared, an organization built on the foundations of a nearly defunct Seattle-based satellite communications company, now is hoping to provide wireless network capacity integrated with satellite coverage. They intend to operate on a wholesale-only basis and sell its services to retailers and device makers with its LTE coverage bundled into products. Now it seems they are attempting to jumpstart their operations through a partnership with AT&T.
John Stankey, the President of Business Solutions at AT&T, said last month that the wireless market is not big enough to support multiple wholesale providers and consolidation would better serve all parties involved. By this, Stankey was referring not only to LightSquared but to Clearwire, the company that runs the WiMAX 4G network, LTE’s rival, and the company in which Sprint Nextel owns a 50 percent share. This isn’t the first time in the recent past that AT&T went over Sprint’s head. AT&T recently outbid Sprint for the acquisition of T-Mobile in what has become the telecommunications event of the decade.
LightSquared hopes to roll out commercial services during the first half of 2012.
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