Thursday, December 16, 2010

MetroPCS Eyes TerreStar Assets - WSJ.com

MetroPCS Communications is exploring a purchase of assets of mobile-communications business TerreStar Networks Inc. out of bankruptcy court, the Wall Street Journal reports.

TerreStar's most attractive assets are government licenses to use spectrum for mobile satellite applications. MetroPCS, the fifth-largest U.S. wireless carrier by subscribers, has been on the hunt for spectrum that will help it become a national operator.

It isn't clear whether the spectrum could be "re-purposed" for terrestrial fourth-generation networks, but LightSquared has been able to get such authority, as Terrestar has customers already making use of the satellite communications network.

MetroPCS also could use wholesale capacity from the proposed LightSquared network, as well. MetroPCS might also bid on spectrum Clearwire wants to sell. 

AT&T's "Satellite Augmented Mobile Service" uses the TerreStar network and dual-mode handsets that use both cellular and satellite networks.

The TerreStar "Genus" smartphone operates with terrestrial mobile as the primary default mode and satellite access capability as a secondary option for voice, data and messaging.

The access to the TerreStar satellite network enables wireless communications coverage in remote areas for government, energy, utility, transportation and maritime users, as well as backup satellite communications capabilities for public safety agencies, first responders and disaster recovery groups.

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