LightSquared Raises an Additional $265 Million
LightSquared, which aims to build a 4G cellular network to sell on a wholesale basis to others, said on Monday that it has raised an additional $265 million from a combination of new and existing investors.
With the new money, LightSquared has pulled in $2.3 billion in funding over the last 12 months.
“This latest round of financing signals another endorsement by the financial markets of our business model, and LightSquared’s intent to use private capital to build out a new network to meet the growing demand across this entire nation for wireless broadband access,” LightSquared CEO Sanjiv Ahuja said in a statement.
Meanwhile, the company is also working to address concerns that there could be interference with GPS systems if LightSquared builds its network on the spectrum it currently has a license for.
Last week the company submitted a plan to the Federal Communications Commission that it says takes care of 99.5 percent of interference issues.
“In contrast, the GPS device manufacturers, unlike relevant government agencies, have been largely uninterested in finding a win-win solution,” LightSquared said in a statement. “Rather, their only answer to a problem of their own making is to demand that the government simply block LightSquared from using the company’s own spectrum to roll out the first wholesale-only wireless broadband network for the entire nation -– an economic benefit worth as much as $120 billion to consumers.”