Despite the outcry over LightSquared's proposed wholesale LTE network and its potential to interfere with GPS, LightSquared continues to make news on the partnership front. The company's newest deal is with VoIP service provider.
Under a multi-year wholesale agreement, netTalk will become a wholesale customer on LightSquared's planned network and will develop its own branded voice and high-speed mobile data services for its customers.
NetTalk sells a product call DUO, which allows customers to make free nationwide calls to any landline or mobile phone in the U.S. and Canada from anywhere in the world. The device allows users to connect directly to an Internet connection through a router/modem, rather than passively through a computer. NetTalk also offers smartphone application conference bridge services.
LightSquared has signed up several customers, including Leap Wireless (NASDAQ:LEAP), Cellular South, Best Buy and Open Range Communications. Reports also have indicated that LightSquared inked a network-hosting deal with Sprint Nextel (NYSE:S) but both companies have remained silent on the issue.
During a recent congressional hearing, lawmakers and officials from federal agencies called for more testing of LightSquared's LTE network to ensure that it does not interfere with GPS receivers. Officials, however, said they are still hopeful they can find a solution that will allow LightSquared to proceed with its network buildout while not harming GPS. LightSquared expects to submit a final report to the FCC on GPS interference tests by June 29. Meanwhile, the GPS community wants LightSquared out of the L-band spectrum completely.
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