LightSquared partners with rural player OpenRange
Deal will accelerate the LTE wholesaler's expansion into underserved areas with spectrum leasing and roaming
Published: 14 March, 2011
READ MORE: Spectrum | US | Broadband | Satellite | LTE
LightSquared has announced the first of its operator partners, rural broadband carrier OpenRange, which will extend its reach into ultra-rural communities. This may not be one of the big fish - Sprint and/or T-Mobile - with which the wholesale LTE outfit is said to be negotiating, but it brings a well funded customer to LightSquared, and one that addresses markets that the major rivals do not. It also throws doubts over OpenRange's original plan to build its $100m network in WiMAX and with satellite backhaul from Globalstar.
OpenRange gained funding for rural coverage under the US broadband stimulus program and has been working with Alvarion on its WiMAX roll-out. Now it looks set to lease spectrum in LightSquared's satellite L-Band, where the new company is building its hybrid satellite/terrestrial network across the US. This is more complex than a straight MVNO deal, supporting integration and two-way roaming across the LightSquared and OpenRange networks. This will help LightSquared expand its reach rapidly into very rural areas without having to build its own LTE terrestrial element in every area. The firm is also rumored to be discussing spectrum/network sharing with Sprint.
"This partnership enables LightSquared to provide an enlarged and seamless nationwide 4G-LTE footprint to all of our retail partners and their customers," said LightSquared CEO Sanjiv Ahuja. The companies will collaborate on the design, build-out and operation of Open Range's network as well as on product and service evolution. This suggests the rural carrier will move towards LTE even where it is building its own network.
"OpenRange's unwavering vision is for ubiquitous high speed internet Service at an affordable price across all of rural America. The partnership with LightSquared helps fulfill our vision of delivering the most advanced and interoperable broadband wireless communications services to unserved and underserved rural communities across America," said OpenRange CEO Bill Beans.
OpenRange received a $267m federal loan in 2009 to deliver high speed wireless access to 500 communities across 17 states. The company also received a $100m investment from One Equity Partners, the private equity arm of JPMorgan Chase.
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