4G LTE network operator LightSquared expects to get between $3 billion and $3.5 billion in additional funding over the course of next two to three years.
The company, which has been backed by the hedge fund Harbinger Capital Partners, believes that more investment is needed to get the funding that is needed to make the company cash flow positive.
LightSquared, which has received $2.3 billion in capital financing in the last year, has recently signed a 15 year $13 billion deal with US carrier Sprint to host its L-Band spectrum based LTE network.
The move is a big blow to the $7 billion deal LightSquared made with Nokia Siemens Networks to set up radio access, a core network and associated services. After the deal with Sprint, NSN will now only be providing the core network for LightSquared constituting just a fraction of the original deal.
“This agreement gives LightSquared a rapid and cost-effective radio access network build,” LightSquared Chairman and CEO Sanjiv Ahuja said.
“With our next generation satellite already operational and our independent core network build underway, LightSquared is now well positioned to meet the fast-growing market demand for wireless broadband services with its wholesale-only integrated 4G-LTE and satellite network,” he added.