Ligado Networks is celebrating successfully raising nearly $4 billion in new capital. The satellite company says this helps it take “a major step” toward realizing its 5G plans and expediting the FCC efforts to increase the country’s use of mid-band spectrum for next-generation services.
Led by JPMorgan Chase & Co., Ligado secured $3.85 billion from existing and new investors, which will bolster the company’s plan to expand the roster of vendors supporting its plan to provide broadband connectivity using L-band. The FCC approved Ligado’s plan this April.
In June, Ligado submissions to 3GPP – the industry forum that adopts technical specifications for terrestrial spectrum – were approved. They were supported by vendors such as Nokia, Intel, Samsung, and Sequans, according to Ligado. The company adds that the newly-raised capital will strengthen its collaboration with chipset designers, device manufacturers, and network infrastructure providers.
Ligado President/CEO Doug Smith says the capital enables the company to focus on developing strategic and industry partnerships and enhance its satellite service capabilities to include IoT technology. It also allows Ligado to advance the development of a private network solution that will offer enterprise and industrial sectors managed network services run on fully licensed, dedicated spectrum.
However Ligado’s plans remain controversial. Critics, including the Pentagon, fear Ligado’s plans will disrupt GPS signals, according to Politico. The Wall Street Journal recently reported Ligado needed a cash infusion to fend off potential bankruptcy.