Broadband wireless: LightSquared gets money, Alvarion deal in trouble

LightSquared, seen by some as a wireless ally for the cable industry, has received new life via $850 million in financing to be used for "general corporate purposes which include constructing its world class, 4G-LTE wholesale network," the company said in a news release.

The funding "endorses our overall business model while providing LightSquared with a solid step forward to execute our strategy," Sanjiv Ahuja, LightSquared's chairman-CEO said in the news release. LightSquared could provide cable with an alternate or even separate source of wireless spectrum if things ever go sour with its Clearwire (Nasdaq: CLWR) partnership.

In less positive wireless news, Alvarion could be in danger of losing a $100-$150 million five-year WiMAX hardware and services deal with Open Range Communications. Open Range's goal is to deliver Internet to rural regions within the U.S. using broadband frequencies from satellite-based provider GlobalStar. Those frequencies, though, are enmeshed in an FCC dispute which threatens to close them off, leaving Open Range looking for alternate communications channels.

On the plus side, Alvarion has been fully paid for all equipment it's thus far supplied and Open Range has federal funding of $267 million as well as a $100 million investment from JPMorgan Chase. On the negative side, if GlobalStar can't comply with FCC regulations, Alvarion's future orders may be canceled.

For more:
- see this news release
- and this story

Related articles:
Harbinger brings new player to wireless space with LightSquared; could cable be next?
Report: LightSquared gets more funding
Alvarion lassos $100M WiMAX deal with Open Range

Suggested Articles

Comcast/NBCUniversal is reportedly shifting around its management team ahead of the company’s high-profile launch of Peacock.

In recent years, a number of factors have shifted the video services landscape, including the introduction and explosive growth of OTT services.

Streaming TV services like AT&T TV Now (formerly DirecTV Now) could soon be considered “effective competition” for cable operators like Charter.