SkyTerra, MSV, Inmarsat ink pact for hybrid mobile satellite services

SkyTerra Communications Inc., Mobile Satellite Ventures L.P. and Inmarsat plc said they reached a major pact to resolve complex technical, regulatory and business issues, a move they believe will better enable each to offer L-band hybrid mobile satellite services in North America.
“This agreement introduces a new era of cooperation among L-Band operators and, we believe, will help unlock the growing value of ancillary terrestrial component technology on our now enhanced spectrum, enabling customers throughout North America to reap the benefits from greater flexibility and choices in air interface technology, coverage and equipment options,” said Alexander Good, CEO of SkyTerra and vice chairman of MSV. “We have worked long and hard with Inmarsat to develop this agreement, which sets operational parameters in the L-band for existing satellite operations and lays the groundwork for future cooperation to address consumers’ demand for next generation technology and services.”
The parties said their cooperative-coordination agreement, among other things, includes a provision for the re-banding of satellite spectrum over North America to permit contiguous spectrum for operations, which is intended to address growing broadband requirements for MSS services with ATC authorization.
“Inmarsat’s agreement with MSV, MSV Canada and SkyTerra lays the groundwork for increased operational and technical cooperation while ensuring that Inmarsat can continue to grow and deploy mobile satellite services in North America, including broadband global area network services and our portfolio of existing and evolved offerings,” said Andrew Sukawaty, chairman and CEO of Inmarsat.
Some elements of the cooperative agreement are subject to approval by the Federal Communications Commission and the State Department, as well as coordination with other governments.
Analysts at Stifel Nicolous & Co. Inc. said the development puts competitive pressure on other MSS licensees such as Globalstar Inc., ICO Global Communications Ltd. and TerreStar Networks Inc. The analysts said they expect U.S. officials to sign off on the SkyTerra-MSV-Inmarsat agreement.
Other highlights of the agreement include provisions for the re-banding of the parties’ spectrum over North America to afford contiguous spectrum for operations; coordination parameters for the parties’ next-generation satellites covering North America to increase spectrum efficiency and protect both MSS and ATC operations from interference; accommodating increased technical flexibility and system enhancements for greater ATC usage and operations while protecting MSS; and flexibility to market and operate devices which address growing wireless broadband demands.
The companies said the agreement also establishes a structure whereby Inmarsat will modify its North American operations to allow MSV to make more extensive use of L-Band spectrum.