Ligado Networks filed a lawsuit against rival Inmarsat over alleged breaches of contract between the pair, with the troubled satellite company seeking financial damages covering a 17-year period.
The company accused Inmarsat of intentional and wilful breaches of an agreement struck in 2007, after which it made payments amounting to more than $1.7 billion for the latter to upgrade its satellite terminals.
Ligado Networks’ move was intended to eliminate potential terminal interference in areas including near airports and waterways, to enable it to offer its ancillary terrestrial component service in all areas of the country.
However, Ligado Networks argues Inmarsat did not honour the agreement by failing to upgrade the satellite terminals and deliver portions of L-band spectrum.
It also claims Inmarsat failed to assist it in efforts to gain permission from the Federal Communications Commission to pursue a goal of providing nationwide terrestrial services to expand 5G capabilities in the US.
The complainant is seeking a court order requiring Inmarsat to perform its duties, an award of monetary damages and repayment of billions Ligado Networks argues it lost due to “intentional inaction”.
Years away
Ligado Networks CEO Doug Smith stated it entered into the agreement in good faith and had every intention of upholding its end of the deal.
However, he added Inmarsat was still likely years away from completing the upgrades required.
“After a prolonged effort to reach a path forward, Ligado is compelled to seek legal recourse to make Inmarsat perform its duties and pay damages for the harm it has caused,” added Smith.
Earlier this week, Ligado Networks filed for bankruptcy protection as part of a move to address its near-term liabilities and struck a deal with AST SpaceMobile for access to mid-band spectrum.
The post Ligado sues Inmarsat over 2007 contract appeared first on Mobile World Live.
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