[SatNews] An initial public offering could be in the works for the coming summer...

LightSquared, the USD7 billion Long Term Evolution (LTE) open-access mobile network that will use satellite spectrum acquired by New York investment firm Harbinger Capital, is considering filing for an initial public offering (IPO) as early as this summer. Reuters cites three unnamed sources as saying that LightSquared has already entered into discussions with a number of New York-based institutional investors, including Morgan Stanley, with similar meetings on the West Coast scheduled for next month. LightSquared has been dogged by questions regarding how it will fund its large-scale rollout since the company’s formation in 2010 — an IPO now seems like the likeliest option for billionaire hedge fund investor Philip Falcone, the founder of Harbinger Capital. A LightSquared spokesperson refused to comment on the mooted IPO, unwilling to validate ‘rumours’.

In March 2011, LightSquared signed a wholesale deal with Best Buy to allow the retail chain's Best Buy Connect service to piggyback on its planned LTE network; the same week the firm struck a long-term 4G roaming agreement with pre-paid mobile operator Leap Wireless, to supplement the latter’s own planned LTE coverage. Further, LightSquared CEO Sanjiv Ahuja recently admitted that his firm is in advanced negotiations with a further 15 companies that want to use its wholesale LTE network. According to the terms of its licence, the LightSquared network must achieve coverage of 100 million people by the end of 2012, 145 million people by the end of 2013 and 260 million people (not including satellite coverage) by the end of 2015. The network is expected to launch during the second half of this year. (Source: TeleGeography)