CEO

LightSquared CEO announces Best Buy deal

Reuters News
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Posted: Mar 23, 2011 10:45 AM

ORLANDO, Florida (Reuters) - Harbinger Capital-backed telecommunications startup LightSquared has signed a retail distribution agreement with electronics retailer Best Buy Co Inc, according to the service provider's chief executive.

LightSquared, which was started by high-profile hedge fund manager Philip Falcone, plans to offer wireless services on a wholesale basis to other companies like Best Buy, which want to offer mobile services to consumers under their own brands.

LightSquared CEO Sanjiv Ahuja did not provide details on the retail distribution agreement with Best Buy except to say that the companies would plan to start tests of a service in early 2012.

As well as wholesale customer agreements, the company also needs to raise more financing to fund the $14 billion it needs over the next 8 years to build its high-speed network.

(Reporting by Sinead Carew and Barbara Liston, editing by Gerald E. McCormick)