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Deutsche Telekom thinking of merging T-Mobile USA with Sprint?
It ain't as crazy as you may think. If you'll recall, we actually heard last month that Deutsche Telekom was mulling the idea of spinning off T-Mobile USA from its portfolio, and now it looks as if one carrier in particular is interested. According to the inimitable "people with knowledge of the matter," Bloomberg Businessweek is reporting that Deutsche Telekom has gone ahead with talks to "sell its T-Mobile USA unit to Sprint in exchange for a major stake in the combined entity." Granted, there's no guarantees at this point that the two will actually reach a deal that sits well with both boards, and up until now, they haven't been able to come to terms with T-Mob's valuation. As the story goes, Deutsche Telekom has purportedly said that it could sell "all or part of the US business, and all options are open." Meanwhile, Sprint's remaining mum. A merger of these two would combine the number three and four players in America, but if that doesn't pan out, T-Mobile USA may end up buying wireless spectrum from Clearwire as an alternative. We're hearing that an outright sale of T-Mobile in the US is pretty much off of the table, but considering just how many backroom talks are apparently going on in both camps, we won't be surprised until they tell us to be.
Sprint allegedly talking to LightSquared over 4G infrastructure deal, Clearwire should be sweating
Bloomberg is citing "three people familiar with the talks" (it's not often that we get a specific number!) as saying that LightSquared is in active negotiations with Sprint to use its network infrastructure as it builds out its L-band LTE network. As you might recall, LightSquared is the would-be 4G wholesaler that is in the process of repurposing some satellite spectrum for terrestrial LTE use -- a concept the FCC has approved, but concerns over GPS interference could end up delaying or derailing the strategy altogether if they aren't solved to everyone's satisfaction. Of course, building out any sort of national terrestrial wireless network is a multi-billion dollar, multi-year type of venture, and presumably a tie-up with Sprint to use some of its hardware would help move matters along. What this means for Sprint's existing dealings with Clearwire is unclear; the two operate a WiMAX network together, after all, but the carrier has made it clear in the past that LTE could definitely be an option in the future.
US Air Force raises concerns over LightSquared's LTE network messing with GPS
Following a navigation system's instructions without driving into a ravine is hard enough as it is -- can you even imagine how hard it'd be if you kept losing GPS reception every time you drove within range of an LTE tower? There have been a few anecdotal concerns raised over the last several weeks that LightSquared's proposed LTE network -- which would repurpose L-band spectrum formerly used for satellite -- is too close to the spectrum used by the Global Positioning System, leading to unintentional jamming when the towers overpower the much weaker GPS signals. Things have gotten a little more interesting, though, now that the US Air Force Space Command has officially piped in. General William Shelton has gone on record saying that "a leading GPS receiver manufacturer just ... has concluded that within 3 to 5 miles on the ground and within about 12 miles in the air GPS is jammed by those towers," calling the situation "unbelievable" and saying he's "hopeful the FCC does the right thing." Presumably, the USAF thinks that "the right thing" would involve pulling LightSquared's license, but for its part, the company says it believes Shelton is referring to a test conducted by Garmin (possibly explaining that recent outage in the Southeastern US?) using simulated interference filters -- not the actual filters that it has spent several million dollars developing and perfecting. Regardless of how effective the filters might be, the idea that the only thing standing between a functional GPS system and a constellation of space-borne paperweights is a private company's privately-developed, privately-operated filtering equipment... but then again, we love LTE. Decisions! [Thanks, Brian]
LightSquared says it has signed up five companies for its wholesale LTE service
LightSquared has faced something of an uphill battle in getting its wholesale 4G LTE network off the ground -- even including accusations that it's a threat to national security -- but it looks like it's having fairly good luck attracting some customers. According to Chief Marketing Officer Frank Boulben, LightSquared has signed agreements with five companies so far, including two carriers, one website, a national retailer, and a device manufacturer -- none of which it's able to name, of course. Boulben also revealed that the company, which plans to compete with the likes of Verizon, AT&T and Clearwire, is finished raising money for the "short term," and that it plans to begin trials later this year in Las Vegas, Baltimore, Denver and Phoenix once it finishes its lab testing in Dallas.
Dish Network offers $1 billion to buy a bankrupt satellite/antenna company for reasons only it knows
Dish Network has agreed to buy DBSD, a company currently in Chapter 11 bankruptcy protection that's reportedly working on a system to tie together satellite and ground-based antenna communication for wireless phone and internet service, pending approval by the FCC. Dish pegs the purchase price at approximately $1,000,000,000 (subject to certain adjustments) including the interest on DBSD's debts. Exactly what its plans for the company are remain a mystery, as The Hollywood Reporter quotes mystified analysts like Craig Moffett suggesting theories including wireless internet service, mobile TV, or an integrated satellite/phone/TV bundle to compete with cable operators. SpaceNews.com has the most extensive breakdown, from Dish's initial $45 million investment back in 2009, to the recent FCC decision on a similar hybrid service from LightSquared that may have caused DBSD's spectrum & technology to suddenly become much more valuable. Whatever it is, they considered it worth writing an awful large check for, although we can't help but wonder if they couldn't have broken some of that money off to deal with this whole TiVo issue.
FCC grants LightSquared terrestrial-only waiver, puts an end to LTE drama
If you've been following the drama over LightSquared's application to build a wholesale integrated broadband / satellite network, it's time to put away the tissue box and toss out the bonbons. That's right, the FCC finally approved the company's conditional waiver for an ancillary terrestrial component integrated service rule. In other words, the entity gave LightSquared the green light to offer terrestrial-only phones, in addition to satellite service, as long as interference problems are addressed before the company starts building its network. Just two weeks ago, it looked like the FCC might strike down the proposal on a recommendation from the National Telecommunications and Information Administration (NTIA), which warned of potential interference on the SMS network with the likes of Department of Defense Communications. LightSquared remained silent during deliberation, but following the FCC's decision, both parties gave a thumbs up to the outcome. Honestly, we could have done with a more heated back and forth, but we'll leave that to the professionals. What time is Bridalplasty on again?
NTIA says LightSquared proposal could pose national security threat
Last summer it looked like Philip Falcone's LightSquared was on the path to a democratic LTE solution: a coast-to-coast network, incorporating satellite connectivity to cover the entire country. It's an ambitious goal to be sure -- perhaps too ambitious. In a letter to the FCC, the National Telecommunications and Information Administration (NTIA) warned that the wholesaler's wireless network, which would operate on the MSS spectrum, could interfere with systems like Department of Defense communications. Here's the snag: last year the FCC approved the company's initial proposal to create a network that would incorporate both terrestrial and satellite services. Now LightSquared wants to offer the option of terrestrial-only phones to their clients. According to the NTIA, such a system would require far more land-based stations, causing potential MSS overcrowding and increasing the risk of interference with everything from aeronautical emergency communications to Federal agency systems. The FCC has yet to make a decision on the revised proposal, and LightSquared hasn't made a peep, leaving us to wonder whether it was all too good to be true.
LightSquared does LTE and satellite connectivity wholesale, Nokia Siemens to do the heavy lifting (video)
Chances are you're a little sick of different carriers having different qualities of service in different areas of the country, and have probably wondered at some point: "Can't we all just get along?" The answer is no, we can't, but LightSquared is looking to launch something of an alternative. It's starting a multi-billion dollar wholesale LTE deployment that will run coast-to-coast in the United States, covering 90 percent of the population by 2015. It will also mix that in with satellite connectivity somehow, pledging true nationwide coverage. Nokia Siemens Networks will be laying the groundwork, a $7 billion project that will surely be aided by that company's recent acquisition of Motorola's networking bits, and the total rollout is estimated to create 100,000 jobs -- good news regardless of your carrier allegiance. Anyone who wants to offer connectivity to their customers can buy some bandwidth and pass it along, meaning we could see the rebirth of the MVNO. After watching the inspirational video after the break, we're firmly sure that anything is possible.
