Philip Falcone’s LightSquared wireless venture is considering bidding on satellite companies TerreStar Corp. and DBSD North America Inc., according to two people with knowledge of the company’s plans. The two companies’ spectrum holdings would help Reston-based LightSquared handle wireless traffic as it prepares to roll out a nationwide fourth-generation network, said the people, who declined to be identified because the plans aren’t public. LightSquared is backed by Falcone’s Harbinger Capital Partners hedge fund. LightSquared bids would set up a potential battle between Falcone and Charlie Ergen. Dish Network Corp., where Ergen is chief executive officer, said this week it reached agreement to buy DBSD for about $1 billion. DBSD, which filed for bankruptcy in May 2009, is a unit of ICO Global Communications Ltd. of Kirkland, Wash.
TerreStar, also in bankruptcy, has a confirmation hearing on March 4 for approval of a reorganization plan in which control may go to EchoStar Corp., where Ergen is chairman. TerreStar is also looking for an asset sale that would give creditors more money, and is proposing bonuses for its top executives if such a deal is reached.
EchoStar, based in Englewood, Colo., and New York-based Harbinger are TerreStar’s largest shareholders, according to Bloomberg data.
Under an agreement with the Federal Communications Commission, LightSquared is required to build a network that covers up to 100 million Americans by the end of 2012 and 260 million by 2016. The company plans to offer space on its network wholesale to retailers, computer manufacturers and consumer electronics makers, allowing companies such as Apple Inc. and Sony Corp. to sell their own wireless service in competition with existing providers.
