London-based satellite operator Inmarsat, now owned by Viasat of California, is likely to win an appeal in which it is involved over the bankruptcy of Ligado Networks. The Court’s finding says that Inmarsat has demonstrated “a reasonable chance, or probability” of prevailing in its contract dispute.

A Delaware federal judge on February 27th granted Inmarsat Global Ltd.’s emergency request to stay a bankruptcy court order requiring the Viasat subsidiary to support a spectrum-rights application.

Ligado Networks has been seeking FCC approval for its deal with AST SpaceMobile over certain L-band spectrum rights in the US and measuring 40 MHz of spectrum. One of the arguments in favour of the application is said to be the need for competition beyond SpaceX’s rapidly expanding D2D satellite footprint

Ligado in its application to the FCC said: “Approval of this Modification Application is all the more important given SpaceX’s announcement of its agreement to purchase EchoStar’s S-band spectrum, since the Commission will want to ensure the market for space-based mobile broadband is competitive, dynamic and responsive to the increasing threat from China.”

The basis of the deal is an agreement between AST and Ligado, where AST will pay Ligado $550 million and of that sum $535 million would go to Inmarsat. Ligado entered bankruptcy protection in January last year, and its exit from Chapter 11 has been proceeding through the bankruptcy court over the past year.

AST SpaceMobile plans to use Ligado’s spectrum for direct-to-device satellite applications over North America.

The ruling on February 27th means that Inmarsat Global Ltd. (and thus Viasat) was relieved from immediately having to support an application by bankrupt Ligado Networks and AST SpaceMobile Inc. for federal regulator approval of certain commercial satellite operations.

Bloomberg Law says that Inmarsat has carried its burden to pause a bankruptcy court order directing it to back an FCC license application for AST to operate 96 satellites within the L-Band mobile satellite services spectrum in North America, Judge Gregory B. Williams of the US District Court for the District of Delaware ruled on February 27th.

One observer (Dr Tim Farrar of TMF Associates) suggests that the end result could be made that AST will come to terms and pay Viasat/Inmarsat even more money for international spectrum rights: “That would be especially likely if Viasat is struggling to secure some of the hoped-for partners in its Equatys (joint-venture with Space42).”

However, a late filing came on March 3rd from satellite rival Iridium, which is asking federal regulators not to allow a deal that would see AST SpaceMobile offer direct-to-cell service on Ligado’s satellite spectrum. Iridium uses the same spectrum band, and claims the two applicants hadn’t properly coordinated with incumbents to prevent interference, and that the deal would ultimately amount to a transfer of license without the proper process.

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Categories: Blogs, Inside Satellite, Policy, Regulation

Tags: AST SpaceMobile, Inmarsat, Ligado