LightSquared, AirTouch Communications Enter into Multi-Year Wholesale Agreement

LightSquared, the first wholesale-only integrated LTE wireless broadband and satellite network in the United States, has signed a multi-year wholesale agreement with telecom products developer AirTouch Communications.

“We're proud to add AirTouch to our increasingly diverse partner portfolio,” Sanjiv Ahuja, chairman and chief executive officer of LightSquared said in a press release.

“In addition to cellular voice and data products, AirTouch can now add a new source of revenue by delivering a bundled wireless offering to their customers. This represents the true spirit of LightSquared's wholesale-only business model, and we look forward to AirTouch using our network to develop next-generation products and services, and forge new strategic alliances,” Ahuja added.

AirTouch has been offering next generation cellular cordless telephone technology and wireless signal amplification products including its cell@home, HomeConnex, UFO and FocalPoint products which are sold through various channels.

Using the LightSquared network, AirTouch will now offer its own branded wireless connectivity, opening up an important new revenue stream for the company. The current deal with AirTouch has helped the company to qualify as the first device manufacturer that will sell wireless connectivity over LightSquared's network combined with its communications devices. 

With this deal, customers who purchase AirTouch products can now directly sign up for accompanying AirTouch wireless connectivity for those devices. AirTouch also said that it will offer its devices through LightSquared's other wholesale partners. 

“With LightSquared's wholesale-only business model, we can not only provide wireless connectivity to existing customers, but we are now able to tap new revenue streams while generating additional value for our customers and shareholders,” said Hide Kanakubo, chief executive officer at AirTouch.

“This agreement will help us energize our business model to deliver a much broader range of innovative new products and services,” Kanakubo added.

LightSquared statement also revealed that it has now signed 15 partner agreements with companies that are eager to develop innovative mobile services, devices and applications on LightSquared's open network.

In related news, LightSquared announced that it will implement Convergys' state-of-the-art Rating and Billing Manager to deliver extraordinary transaction volumes and flexible handling of complex account hierarchies.