Consumers and businesses in the U.S. could have more connection options next year with the launch of a new broadband wireless network that seeks to compete with the phone.
Harbinger Capital Partners The company on Tuesday introduced its new wireless network LightSquared, which should cover 92% of the country's population by 2015.
But there are still several legal and financial obstacles to overcome. And another thing is that at first the service will not offer LightSquared conventional mobile phone calls, but only exchange of information. You can make phone calls, on the broadband wireless and data connections, but the technology has not reached its full maturity.
Although this represents a different proposition LightSquared in the wireless market. Only two more companies, Verizon Wireless and AT & T Inc., have concrete plans to build nationwide networks using the same technology for fourth generation (4G) that would LightSquared.
Sprint Nextel Corp., through its subsidiary, Clearwire Corp., is building a third network with a different 4G technology that may have less support from equipment manufacturers.
Consumers do not buy directly LightSquared service. Instead, the company will sell access to other companies, which in turn resold. LightSquared seeks to attract cable TV companies, telephone companies do not have access to the wireless broadband network and sellers who want to offer wireless service under its own brand.
The new wireless briadband network
Dan Hays, telecommunications specialist at consulting firm PRTM, said LightSquared "could provide another opportunity for major brands and retailers such as Wal-Mart, Best Buy and Office Depot to enter the wireless market as service providers consumers. "
LightSquared plans to begin service in the second half of 2011 in Las Vegas, Phoenix, Denver and Baltimore.
Nokia Siemens Networks will build, will maintain and operate the network under a contract for 7,000 million dollars and eight years, said LightSquared. Nokia Siemens is a company created by Nokia Corp. of Finland and Siemens AG of Germany.
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