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       #Post#: 52--------------------------------------------------
       New 4G Network to ChallengeWireless Carriers
       By: eba95 Date: July 25, 2010, 7:33 am
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       S. consumers are going to have
       more options with fourth-
       generation, or 4G, service, as
       private-equity firm Harbinger Capital
       announced plans to build out a new
       high-speed network to challenge the
       major carriers.
       The New York, N.Y.-
       based company said
       its new venture, to be
       called LightSquared,
       will spend $7 billion
       to roll out 4G service
       in the first markets by
       mid-2011. By 2015, it
       aims to build about
       40,000 base stations
       that reach 92 percent
       of the U.S. population.
       In addition, the firm
       plans to use a risky
       and expensive
       strategy of launching
       new satellites from
       SkyTerra, a company
       it acquired earlier
       this year, for
       additional coverage.
       The new network will
       provide fast Web
       browsing on
       smartphones using a 4G technology
       called Long-Term Evolution, or LTE.
       Verizon is already building out its
       own LTE network, to be turned on
       later this year.
       "The business is well positioned to
       capitalize on key trends," said Philip
       Falcone, Harbinger Capital's chief
       executive.
       LightSquared is looking to partner
       with wireless carriers. In May,
       reports surfaced that T-Mobile was in
       early-stage talks with Harbinger
       about a 4G licensing deal.
       LightSquared is also trying to entice
       well-known brands like Wal-Mart and
       Best Buy to launch their own mobile
       virtual network operator, or MNVO,
       service. MVNOs are companies that
       do not own infrastructure, but
       instead, rent airtime from other
       network owners.
       "Demand for wireless broadband is
       growing at a rapid pace and there is
       an increasing need for additional
       network capacity and reach," Falcone
       said.
       But the firm is moving into fiercely-
       competitive waters. Verizon and
       AT&T are rushing to roll out 4G
       networks that can support
       smartphones, led by Apple's iPhone
       4. Sprint has already activated its 4G
       network in several markets.
       Regardless, LightSquared said Nokia
       Siemens, which recently paid $1.2
       billion to buy Motorola's network
       equipment business, will deploy and
       maintain its new network under an
       eight-year contract.
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