LightSquared says it won't pay until Inmarsat answers unresolved contractual questions LightSquared has defaulted on a US$56.25 million payment due under a 2007 wireless spectrum cooperation agreement with Inmarsat, the U.K. satellite communications operator said Monday, adding that it could terminate the agreement if LightSquared doesn’t make payment within 60 days. LightSquared later denied defaulting on the payment.The future of LightSquared’s project to offer LTE (Long Term Evolution) broadband wireless services across the U.S. using a combination of satellite and terrestrial signals was thrown into doubt last week, when the U.S. Federal Communications Commission said it was minded to withdraw its approval for the project. LightSquared is considering a legal challenge to the FCC’s decision.The FCC had initially made its approval conditional on LightSquared working with the GPS industry to reduce concerns over interference with GPS navigation devices, which operate on frequencies adjacent to those LightSquared intends to use. LightSquared’s spectrum cooperation agreement with Inmarsat is key to the proposals it made to solve the GPS interference issue: Of the frequencies LightSquared could use for its network, Inmarsat controls the block furthest from that used by GPS receivers, and so the least likely to cause interference problems.LightSquared has already invested $4 billion in building its network, and will need to invest another $14 billion in private financing to complete its plans, it says. In early January the company said it had enough financing to wait several more quarters for regulatory approval to begin operating its network, but Monday’s default on the payment to Inmarsat suggests LightSquared’s finances may be tighter than the company has previously let on.As of Nov. 2, LightSquared had paid Inmarsat $420.6 million under their spectrum cooperation agreement, of which $268.1 million was paid last year, according to Inmarsat’s financial statements. Following LightSquared’s failure to pay Monday’s $56.25 million installment, Inmarsat said it had given the company notice that it has 60 days to pay, after which Inmarsat can terminate certain of LightSquared’s rights to spectrum set out in their cooperation agreement. Inmarsat warned its investors that although it is negotiating with LightSquared, it cannot be sure that it will receive any further payments from the company.LightSquared later denied defaulting on the payment, saying that the payment wasn’t due until Inmarsat had fulfilled certain contractual obligations, concerning which LightSquared had raised a number of questions. The cooperation agreement allows for additional time to resolve such questions before payment is due, it said.Peter Sayer covers open source software, European intellectual property legislation and general technology breaking news for IDG News Service. Send comments and news tips to Peter at peter_sayer@idg.com. Related content feature 8 tips for unleashing the power of unstructured data For most organizations, data in the form of text, video, audio, and other formats is plentiful but remains untapped. Here’s how to unlock business value from this overlooked data trove. By Bob Violino Nov 28, 2023 10 mins Data Mining Data Mining Data Mining opinion What you don’t know about data management could kill your business Organizations without a solid data management strategy are on a collision course with catastrophe. Unfortunately, that’s most businesses, judging by the fundamental disconnect on the importance of strong data foundations. By Thornton May Nov 28, 2023 6 mins Data Architecture Data Governance Master Data Management brandpost Sponsored by Dell Technologies and Intel® Gen AI without the risks Demystifying generative AI: Practical tips for cost-effective deployment in your organization. By Andy Morris, Enterprise AI Strategy Lead at Intel Nov 27, 2023 6 mins Artificial Intelligence brandpost Sponsored by SAP Old age isn’t what is used to be: a versatile solution for a more independent breed of seniors An award-winning company from Down Under gives today’s seniors the power to access the services they need while keeping control of their own destinies and preserving their independence. By Michael Kure, SAP Contributor Nov 27, 2023 4 mins Digital Transformation Podcasts Videos Resources Events SUBSCRIBE TO OUR NEWSLETTER From our editors straight to your inbox Get started by entering your email address below. Please enter a valid email address Subscribe