How LightSquared will launch its LTE network in less than a year

CommsDay

The ambitious plan by US start-up LightSquared to build a nationwide wholesale LTE network in the US will kick off later this year, with commercial services in select markets expected as early as the second half of 2011.

How it is going to meet the tight timeline is one of the major challenges for the company, Frank Boulben, chief marketing officer at LightSquared, told CommsDay International. The solution was to outsource the whole thing to a vendor in LightSquared’s case, that was Nokia Siemens Networks.

“If we had not partnered for a full outsourcing model with NSN, we would have had to ramp up a technical organisation of at least 3,000-4,000 people, and that would have taken a lot of time,” Boulben said.

“By doing the full outsourcing, we can benefit immediately from the 3,000 people NSN has on the ground in the US, who can immediately start to deploy the network.”

As such, the network is actually scheduled to handle traffic as early as end 2000. According to Boulben, NSN is slated to deliver its equipment for the four initial cities, Denver, Phoenix, Las Vegas and Baltimore – in the November, December timeframe. The first six months next year will be used to install and fine tune the network in those markets before commercial service launch in the second half of 2011.

The other major challenge for LightSquared is aligning device manufacturers to support its service, which is so far

the world’s only network on the 1400MHz spectrum band.

In this area, the company is planning only to make official announcements in the fall, but Boulben did revealed that

the process has already started with some success.

“It is critical for us to have partnerships with the chipset manufacturers and device manufacturers,” he explained, adding that the company has already secured partnerships with three chipset vendors, and already with five device manufacturers, including two brands and three OEMs.

“Now it is all about execution and getting customers on the network,” he said.

“On that front, we have had very good surprises because when we stated to engage companies two, three months ago, we were not expecting so much appetite. We find ourselves in a situation where we are now finalising term sheets with companies already. We expected to be at that stage in the first half of next year, so there is really demand for our model.”

100% SATELLITE COVERAGE: Boulben also give more details to CommsDay on the less talked about satellite component to LightSquared’s business. LightSquared’s LTE network roll out commitment to the FCC

Date Population coverage

End-2012 100 million

End-2013 145 million

End-2015 288 million

Estimated percentage of the US population covered by network: 92%

Estimated number of base stations at end-2005:40,000

“We are launching a next generation satellite in the coming months, which will offer from Day 1, 100% coverage of the territory of the continental US,” he said.

“We will have satellite packet coverage to 100% of the country, which is unique to LightSquared. So whether you live in the rural area, or you happen to be on vacation in Yellowstone Park, you will still have the capability via the satellite connection to make a phone call, send a text, do instant messaging and email – without attachments.”

While the reference to “emails without attachments” implies that the satellite offering won’t be broadband, Boulben points out that the service is still an important complement to its LTE infrastructure.

“Rural operators that we are discussing with are very interested by that satellite backup service, as well as the public safety service operators,” he said. “It is very important to have the satellite backup, if there was a catastrophe, the satellite component of our network is pretty unique.”