LightSquared, Sharp Team Up on 4G Devices

LightSquared and Sharp signed a deal to develop mobile devices for its LTE network, hinting that the satellite provider expects U.S. authorities to approve its 4G plans.

Sharp, the largest mobile-phone maker in Japan, has been looking to reach the U.S. market with new mobile devices, but so far those efforts have been stalled. The company held back the launch of its Galapagos tablet in the U.S., and cancelled the launches for two other tablets already on the Japanese market.

LightSquared CEO Sanjiv Ahuja, meanwhile, said his company's wholesale business model will "provide Sharp with a platform from which they can aggressively expand into the U.S. wireless market with an exciting portfolio of smartphones and tablets."

But, LightSquared's service is not yet guaranteed, and Sharp's plans to release its devices in the U.S. may well be put on hold.

The network provider is seeking the government's permission to offer wholesale 4G service over airwaves reserved for satellites. But, GPS makers contend LightSquared's airwaves may disrupt navigation signals for planes, boats, automobiles, among others, so the Federal Communications Commission has ordered a series of tests on the service.

Regulators have threatened to block LightSquared's plans if its system blocks GPS service, but it maintains it has solved the spectrum issue, and should be allowed to move forward with its plans. The network intends to invest $14 billion over eight years, maintaining the controversy is fueled by rivals such as AT&T.

The ongoing investigation indicates Sharp is banking on a technology that might be some time away from approval. Meanwhile, LightSquared says despite Sharp's lack of presence in the U.S., it picked the Japanese tech company as the its first manufacturer for wireless devices based on several factors.

"The goal of the agreement is to leverage Sharp's leading-edge product solutions to develop a range of innovative devices which will incorporate an extensive selection of unique device components, such as Sharp's advanced LCD panel and camera module, for LightSquared's 4G-LTE network partners including carriers, retailers and others," said Ahuja.

One of those partners may be Sprint, which penned a $9 billion agreement allowing LightSquared to use its network of cell phone towers for the LTE service. LightSquared also expects to sell service to other wholesalers such as Best Buy, which may eventually carry Sharp devices.

The final decision over LightSquared's U.S. service, though, depends on the FCC's ruling, which is expected in late November. However, if LightSquared can iron out the federal agency's concerns, Sharp may well have found a way to tap into the emerging U.S. 4G market.

LightSquared, Sharp Team Up on 4G Devices originally appeared at Mobiledia on Tue Oct 04, 2011 11:42 am.

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