Wireless Broadband Network For Launch Next Year: New York:American consumers and businesses can get more choices in wireless service, starting next year with the launch of a new wireless broadband network, which aims at ensuring competition existing telephone companies.Private Investment Company, Harbinger Capital Partners on Tuesday revealed details of the launch of its wireless network, LightSquared, which should cover 92 percent of the population by 2015.
But there are financial and regulatory barriers to overcome. And in another wrinkle, LightSquared will not initially offer regular services to mobile phone, just data. You can send phone calls over data connection, but the technology is not fully mature or standardized.
Nevertheless, LightSquared is a rare new player in the wireless market. Only two other companies, Verizon Wireless and AT & T Inc., is the company planning to build a nationwide network using the same fourth-generation network technology, which LightSquared be used. Corporation Sprint Nextel, through its subsidiary company Clearwire Corp. is building a third one with the other 4G technologies, which are likely to receive less support from equipment manufacturers.
Consumers will not buy services directly from LightSquared. Instead, he will sell access wholesale to other companies who can resell it to the consumer. LightSquared hopes to attract providers of cable television, telephone companies, which do not have a wireless network of its own and retailers who want to provide wireless communication services under its own brand.
Dan Hays, who focuses on the relationship with the consulting firm PRTM, said LightSquared "can provide new opportunities for retailers and major brands such as Wal-Mart, Best Buy and Office Depot, to enter the wireless market as service providers for consumers.
LightSquared plans to begin providing services in the second half of 2011 in Las Vegas, Phoenix, Denver and Baltimore.
LightSquared said Nokia Siemens Networks will build, maintain and operate the network in the $ 7 billion, an 8-year contract. Nokia Siemens is a joint venture of Nokia Corporation in Finland and Siemens AG in Germany.
The Treaty is an important step for Nokia Siemens, which has not had much presence in the U.S. market of wireless equipment. On Monday, he announced a deal to buy a business-networking company Motorola Inc for $ 1.2 billion to improve its position in the U.S.
One of the reasons, it is rare for a new national wireless communications occur that is difficult and expensive to acquire rights to broadcast throughout the country. Verizon Wireless paid $ 9.4 billion for the national rights of the spectrum in 2008 auction, for example.
LightSquared is in the unusual position because it owns a nationwide wireless spectrum once reserved for the use of satellite phone. Harbinger bought SkyTerra, the satellite company, earlier this year.
Placing calls via satellite is expensive and impractical compared with the use of cellular base stations, as FCC allows the owners of the spectrum for the backup satellite coverage with towers. This gives LightSquared "backdoor" to the creation of conventional terrestrial cellular network of base stations.
However, under current rules FCC, all devices that use spectrum LightSquared have come with the ability to connect to the satellite in addition to ordinary cell phone towers, in accordance with the aerospace industry consultant Tim Farrar. This would add to the cost of the device and limit choice.
LightSquared bets on FCC changes the rules for devices that speak only on the towers. Despite this, he must launch a satellite this year to satisfy the condition of the FCC that it will provide satellite communications.
Launching a new network fits into the goals FCC to establish competition in the wireless market. FCC Chairman Julius Genachowski said Tuesday that he was glad to learn about creating LightSquared.
Farrar said he is also not clear if the Herald will be able to raise the billions needed to build the network, as well as other expenses.
"It will be very interesting to see where the money comes from," says Farrar.
Tom Surface, spokesman LightSquared, said the company "will evaluate our funding requirements, as we develop and grow our business."
The Director-General is LightSquared Sanjiv Ahuja, who was CEO of French mobile phone company Orange from 2004 to 2007. He then founded the company, which started wireless in Pakistan and Bangladesh.
