LightSquared inked a wholesale LTE deal with communications services provider PowerNet Global, the latest customer to sign up with LightSquared despite continued uncertainty over whether its plan to turn on its terrestrial LTE network will be approved by the FCC.
Under the multi-year agreement, PowerNet Global will become a wholesale customer on LightSquared's LTE network and will develop its own branded voice and high-speed mobile data services for its business and residential customers. Founded in 1992, PowerNet provides voice, data, SIP and managed services.
In the wake of Sprint Nextel's (NYSE:S) 15-year, $9 billion network-hosting deal with LightSquared, LightSquared continues to prove it can attract customers, despite pressure from the GPS industry and government agencies, which are worried that the company's L-band spectrum will cause damaging GPS interference.
LightSquared CMO Frank Boulben told FierceWireless last week that the Sprint deal, in which LightSquared will pay Sprint to host its spectrum on Sprint's Network Vision network architecture, has resulted in "fantastic" feedback from potential customers. He said LightSquared is currently in negotiations with 22 companies for commercial contracts. He also said that LightSquared expects to receive between $3 billion and $3.5 billion in additional funding over the next two and a half years.
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