Harbnger to build Nationwide 4G LTE network using Mobile Satellite Service ATC spectrum.
tmfassociates.com
Now that the FCC has announced their intention to effectively remove the "integrated satellite/terrestrial service requirements) for MSS ATC spectrum in the National Broadband Plan. This proposed removal of the required Satellite connectivity in association with the use of MSS frequencies for terrestrial-only communications is worthy of taking note. So MSS spectrum which was one seen near valueless will now be repurposed to allow terrestrial only communicatIons without the subject spectrum being subject to competitive bidding requirements.
Harbinger Capital Management whom has quietly been amassing what should be illegally cheap long term leases on various MSS licensee's ATC spectrum rights and holdings (See Terrestar), and the outright purchase of Skyterra for pennies on the dollar of post National Broadband Plan spectrum valuations. Now, Harbigner in close association and cooperation with the FCC plans to build a Nationwide 4G Network claiming rights to over 25Mhz of nationwide spectrum, with commitments for another 20Mhz in the next three years using mostly Mobile Satellite Service Spectrum with out the need of actually including Satellite Service.
For instance.. Harbinger signed a long term lease with Terrestar to lease 8 Mhz of nationwide L Band Spectrum for 2 Million per month beginning in 2011, now paying 1 Million per month. The lease term if for 24 years.
From the Terrestar 10-K
We have leased our 1.4GHz terrestrial spectrum to Harbinger.
In September 2009, we entered into a Spectrum Manager Lease Agreement with an affiliate of Harbinger Capital Partners Master Fund I, Ltd. under which the Harbinger affiliate is leasing our rights to use certain 1.4GHz terrestrial spectrum. The lease has an initial term through April 2017, renewable at the lessee's option for two additional terms of ten years each subject to FCC renewal of the licenses. The lease payments are initially $1 million per month and will increase to $2 million per month no later than July 2010, and could increase earlier depending upon the satisfaction of certain conditions. Under certain conditions the lessee has an option, but not the obligation, to purchase the licenses, subject to the approval of our board. The lessee also has a right of first refusal to match the price (less credit for certain amounts paid under the agreement) in any potential transfer of the licenses to a third party.
In January 2010, in exchange for a $30 million prepayment of amounts due under the lease, we entered into further agreements with Harbinger. We agreed to negotiate with Harbinger on an exclusive basis for a period of 90 days towards an agreement under which our S-band spectrum would be pooled with other spectrum to provide mobile communications services. As part of this exclusivity agreement, we have agreed that we would not enter into any agreement relating to the S-band spectrum other than with Harbinger, nor grant any third party rights with respect to the S-band spectrum that would interfere with use of the S-band spectrum by Harbinger or limit our ability to enter into a transaction with Harbinger regarding the S-band spectrum.
Anyone else interested in 8 Mhz of Nationwide 1.4Ghz Spectrum for 2 Million a month????
(Sounds like FleetCall which became Nextel in the late 1980's)
>The predecessor to Nextel, known as FleetCall, was founded in 1987 by Morgan O'Brien, a telecommunication lawyer, and Brian McAuley. The company changed its name to Nextel Communications in 1993. In 1995, wireless industry pioneer Craig McCaw became a significant investor in the company. Mark Warner, now a United States Senator from Virginia, and Jack Markell, the current Governor of Delaware, were also early investors.
The company was originally named FleetCall because it used frequencies designated by the Federal Communications Commission for use in fleet dispatch. The core of the business model was to buy these fleet dispatch frequencies at a substantial discount to the cost for the same bandwidth in designated frequencies set aside and being auctioned for wireless telephone service. These "non-cellular" frequencies were made usable for a consumer and business wireless voice telephone service with the iDEN technology developed by Motorola, which some observers initially said would not be practical. Initially, FleetCall did not want to include the push to talk feature in their phones, but the FCC required it as the initial frequencies were licensed for dispatch use. Subsequently, Nextel used the feature as a key marketing advantage.<
For the full story via Tim Farrar's blog...
blog.tmfassociates.com
Sure glad Globalstar hasn't leased out their spectrum for pennies on the dollar.. Great News for Globalstar investors.. Which doesn't include Maurice... How Ironic???
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