LightSquared says it has a solution to its GPS interference problems

US greenfield operator LightSquared has announced a plan to switch spectrum bands in an effort to head-off concerns that its frequencies interfere with GPS systems. The announcement comes just two days after the wholesaler secured a last-minute extension to a deadline requiring it to submit a report on interference to the US Federal Communications Commission.

According to a press release issued by the company, LightSquared says it will now shift into a 10 MHz spectrum block that is lower on the spectrum band and “located further away from the GPS frequencies, greatly reducing the risk for interference.” Using the GPS industry test results, LightSquared said that this lower block of frequencies is largely free of interference issues, “with the exception of a limited number of high precision GPS receivers that are specifically designed to rely on LightSquared’s spectrum.” The wholesaler had originally set this spectrum aside for future use.

The company, which earlier this week announced a network share deal with Sprint,  says that this “comprehensive solution” will allow it to “proceed with its business plan, protect the public’s stake in GPS and lay the foundation for future co-existence of a variety of wireless broadband services and GPS.” As part of the plan, LightSquared has also entered into negotiations with satellite company Inmarsat, which controls the alternative block of spectrum to “accelerate the schedule for LightSquared to begin using the frequencies.”

Over the past few months, test results released by the GPS industry have indicated that at least one of LightSquared’s 10MHz spectrum blocks interfered with GPS receivers, sparking transport safety concerns, particularly among the aviation and public safety sectors. The FCC had originally granted the wholesaler the right to use satellite and terrestrial spectrum for its services provided that it didn’t cause any major interference with GPS devices. As part of this revised plan, LightSquared says it will “modify its FCC license to reduce the maximum authorised power of base station transmitters by over 50 per cent.” This, it says, will “limit Lightsquared to the power it was authorised to use in 2005, which will provide additional protection to GPS.”

The company says this new plan will give it enough spectrum to “serve its growing customer base for the next several years.”

Lightsquared launched its SkyTerra satellite in November 2010

Hopeful US market debutante Lightsquared, which is aiming to deploy a combination of LTE and Satellite wireless services on a purely wholesale basis, faces an obstacle to deployment as a number of US governmental agencies have aired concerns that the modification of its licence to allow for terrestrial as well as satellite offerings will cause interference with existing services.

The National Telecommunications and Information Administration (NTIA), part of the US Department of Commerce, wrote to communications regulator the FCC this week voicing its own concerns, along with those of “several Federal agencies” including the Department of Defense, Transportation and Homeland Security (DoD). Danny Price, director of Spectrum and Communication Policy  at the DoD wrote to the NTIA in December, leading to the NTIA communication this week.

Lawrence Strickling, head of the NTIA, wrote: “In our view, this proposal raises significant interference concerns that warrant full evaluation as part of the FCC’s consideration of Lightsquared’s application to ensure that Lightsquared services do not adversely impact GPS and Global Navigation Satellite System receivers, maritime and aeronautical emergency communication systems, and Inmarsat receivers used by the Federal agencies.

The modification of the licence is essential to Lightsquared, headed up by former Orange chief Sanjiv Ahuja and funded by Philip Falcone’s hedge fund Harbinger Investments, as it is the terrestrial offering that represents the real opportunity for the newcomer. Questions have been raised over the commercial viability of the satellite element of Lightsquared’s offering.

Strickling’s letter hints at the concern that Lightsquared may not be genuinely focused on fully exploiting its satellite capability—despite the firm having already launched a satellite in accordance with its licence terms.

“Although Lightsquared intends to make dual-mode handsets available to its wholesale customers, it has not made clear whether it will require its wholesale customers to offer dual-mode handsets to their end users,” Strickling wrote. If this requirement is not passed on, he suggested, the carrier’s wholesale customers could opt to resell only cellular services. “The large increase in terrestrial usage that is expected to result form Lightsquared’s new business model creates a new and mroe challenging interference environment that must be addressed satisfactorily,” wrote Strickling.

Read our interview with Martin Harriman, EVP of Ecosystem Development and Satellite Services.

Solaris confirms faulty satellite

European satellite operator Solaris Mobile, which is owned by Eutelsat Communications and SES Astra, said that it has filed an insurance claim over the faulty satellite launched on April 3.

Solaris, along with Inmarsat, was awarded spectrum in the 2GHz S-band by the European Commission in May to offer satellite-based media and communications services across the 27 member states of the European Union.

Both providers are likely to have a particular focus on rural customers that are ill-served by existing fixed and wireless offerings and will deliver TV, location-based services, video and radio and internet connectivity.

However, Solaris ran into trouble soon after launch, with the W2A satellite suffering an “anomaly” affecting the unit’s capability to provide services.

This week the company said that an investigation of the satellite’s payload confirmed “significant non-compliance from its original specifications,” resulting in the filing of a claim for the full insured value of the payload.

Solaris also said that the technical findings suggest that the company should be able to offer some, but not all of the services it was planning to offer.

Europe gets satellite services off the ground

The European Commission this week designated two providers to offer satellite-based media and communications services, allocating Inmarsat and Solaris Mobile spectrum in the 2GHz S-band.

Under the EC award announcement, Inmarsat has been awarded 30MHz of S-band radio spectrum to run its satellite programme, known as EuropaSat, across the 27 member states of the European Union.

Solaris Mobile, which is owned by Eutelsat Communications and SES Astra, received a similar amount of spectrum. Both providers are likely to have a particular focus on rural customers that are ill-served by existing fixed and wireless offerings and will deliver TV, location-based services, video and radio and internet connectivity.

But Solaris has already run into trouble. It has confirmed that the W2A satellite, which it launched on April 3, is suffering an “anomaly”, which may affect the satellite’s capability to provide services.

Earlier this month Eutelsat introduced a satellite-based consumer internet service in the UK using the Ku-band of spectrum. Catering for consumers in rural areas, Eutelsat’s Tooway service offers 2Mbps internet connectivity on the downlink and 256Kbps on the uplink for £29.99 per month.

However, the satellite operators may get competition from traditional mobile players in the rural areas as the EC goes about addressing the issues of 2G spectrum refarming.

According to research house Analysys Mason this week, the refarming of 2G spectrum will be key to enabling mobile broadband coverage outside major population centres.

Liberalising the usage of the 850/900MHz frequency bands, in which 2G services, such as GSM, currently operate, is a significant emerging trend, which will extend the reach of 3G services to rural areas not covered by operators’ existing 2100MHz 3G networks.

“Cost-effective coverage of large, thinly populated land masses is the key benefit of introducing UMTS in the 850MHz or 900MHz bands,” said Catherine Viola, senior analyst at Analysys. At lower frequencies, radio signals propagate further, meaning that fewer sites are needed for network rollout. At 900MHz, for example, networks can be built and operated with cost savings of around 50-70 per cent compared with networks deployed in 2100MHz core-band 3G spectrum, Analysys claims.

UMTS900 networks have already been launched successfully in Europe, Asia Pacific and South America, by DNA and Elisa in Finland, Síminn in Iceland, Optus in Australia, Vodafone in New Zealand, AIS in Thailand and Digitel in Venezuela.

US-based hedge fund Harbinger Capital has confirmed its designs on UK satellite operator Inmarsat, using its holding in US satellite firm SkyTerra Communications as a platform for the bid.

Harbinger said it will provide $500m in funding for SkyTerra’s business plan as part of an agreement that could see the possible combination of SkyTerra and Inmarsat.

The US equity firm currently owns approximately 28.8 per cent of Inmarsat and around 48.43 per cent of SkyTerra.

Upon completion of the proposed deal, it is expected that Harbinger will own over 85 per cent of the combined Inmarsat/SkyTerra entity.

Alexander Good, SkyTerra’s chairman, CEO and president, said, “The combination of SkyTerra and Inmarsat, assuming financial terms can be reached, makes a great deal of strategic and operational sense.  It would greatly enhance spectrum efficiency and North American L-Band spectrum while providing a foundation for innovation in the global mobile satellite industry. Such innovation would include exciting new applications while preserving essential national defence, public safety, safety at sea, and aeronautical safety services. The combination would also provide opportunities for greater efficiencies and scale benefits and coordination in the pursuit of next generation integrated satellite-terrestrial networks, products and applications.”