Network Wholesaler LightSquared Signs Deal with Best Buy

Posted 03/23/2011 at 3:04pm | by Ryan Whitwam

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LightSquared is a start up that intends to build out a robust nation-wide 4G LTE network that it will lease out to network providers. They have announced today that a deal has been inked with retailer Best Buy, but details have not been made public as of yet. The Minnesota-based company will use the LightSquared network to expand its Best Buy Connect mobile broadband service.

Just earlier this week, LightSquared also reached an agreement with regional cell carrier Leap Wireless that will allow their phones to roam onto the LightSquared network. LightSquared hopes that it will be able to carve out a niche for itself as the coming mobile spectrum crunch approaches. Beign a wholesale data provider is not without risk, though. LightSquared is often compared to ClearWire, but they would say that is a false dichotomy. 

LightSquared intends to never sell direct to consumers, unlike ClearWire. They will dole out network access only to companies that want to resell it. LightSquared has stated they will be spending an additional $14 billion on network infrastructure over the next eight years. Maybe the next phone you buy will be running off LightSquared towers.