Globalstar has closed its equity financing of $100 million from One Equity Partners (OEP). The United States Department of Agriculture’s Rural Development Utilities Program (RDUP) has approved a $267 million Broadband Access Loan for Open Range. This has been secured by the private financing. Open Range can now deploy wireless broadband service in rural America using a spectrum lease agreement with Globalstar.
Globalstar is the first satellite service provider to use its spectrum authority to gain additional revenues by providing terrestrial wireless providers enhanced services using both satellite and terrestrial communications. Rural Americans will have access to satellite voice and data service when outside of Open Range’s wireless coverage.
The spectrum lease agreement with Open Range will provide Globalstar with an additional revenue stream. The first down payment is $2.2 million and payments are expected to increase to $10.1 million in year six of the agreement.
Open Range plans to offer affordable dual mode mobile satellite based high speed broadband Internet and voice services. These services will be offered to over six million consumers in 546 rural communities using WiMAX technology. The WiMAX terminals will be able to use Globalstar satellite service when used outside of the WiMAX coverage areas.