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Under Phase 2 of the Cooperation Agreement Inmarsat will support a spectrum plan that increases the total capacity available through the LightSquared network. In return Inmarsat will immediately begin to receive payments of US$115m per annum, payable quarterly in advance. Phase 2 of the Cooperation Agreement has an initial minimum commitment period of 5 years. In connection with the notice announced today, Inmarsat has received a first partial quarterly payment of US$20.1m.

Perry Melton, Inmarsat’s Chief Operating Officer said, “In preparation for the notice received today, Inmarsat has already initiated programmes to ensure our customers are protected from interference risks and has conducted analysis of the issues over an extended period. Inmarsat is confident that the effects on customers will be minimal and, where needed, will be dealt with responsibly.”

The notice for Phase 2 follows the notice given in August 2010 for Phase 1. Under Phase 1 Inmarsat and LightSquared agreed to a plan to enable the re-banding and efficient reuse of L-band radio spectrum covering North America. Phase 1, which is currently being implemented, is designed to increase the contiguous spectrum available to support the deployment of 4G Ancillary Terrestrial Component (“ATC”) services and to protect the continued deployment and growth of MSS activities in North America.

The full Press Release and FAQs can be downloaded by clicking here.

In the long term, ATC will result in a reduction in L-band spectrum for Inmarsat services provided by AST in North America.
Inmarsat are positive their migration programme offering enhanced services, such as Inmarsat B to FleetBroadband migration, will allow Inmarsat to continue their North America services with little impact to users.

For further information please contact George Gibbs at AST.

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