Leap taps LightSquared for LTE roaming and backup

ORLANDO -- Leap Wireless (NASDAQ:LEAP) has always said it has multiple options for a long-term evolution (LTE) strategy, and today it picked more than one (CP: Leap covering all of its 4G bases). In addition to rolling out its own LTE network in its regional footprint, Leap became the first commercial mobile operator to commit to using LightSquared’s future wholesale LTE network.

Leap will launch LTE over its own networks in 2011 and will use LightSquared’s terrestrial LTE service over the satellite bands for roaming outside of its footprint as LightSquared brings its network online. As Leap fills its own mobile broadband pipes and requires more LTE capacity, it will turn to LightSquared’s networks within its footprint to provide the additional bandwidth, said Leap CEO Doug Hutcheson.

“Our business progress demonstrates how data services are increasingly important to our customers, as evidenced by our customers’ significant uptake of smartphones and data-focused, higher-ARPU service plans,” Hutcheson said in a statement. “We intend to deploy our own LTE networks beginning this year to complement the existing nationwide 3G services we currently offer to customers. This new roaming arrangement will allow us to offer customers an even-greater 4G service area as LightSquared expands its own network. We believe that the broad coverage resulting from this business agreement will enhance our ability to offer compelling products and services and allow us to strengthen our retail relationships and distribution capabilities. It will also give us flexibility to access additional 4G capacity where needed as data-centric devices become more popular and require more and more bandwidth.”

Though Leap is calling it a roaming agreement, it appears to be more of a direct wholesale agreement, with Leap effectively operating as a mobile virtual network operator on LightSquared’s system. Either way, any roaming deal wouldn’t be reciprocal. Leap will likely deploy LTE over its advanced wireless service (AWS) or PCS spectrum, while LightSquared is deploying a nationwide network in the L-Band (CP: LightSquared swapping spectrum with Inmarsat). Leap will need to procure dual-or tri-band LTE handsets in order to full take advantage of both its own LightSquared’s network.

LightSquared may be facing pressure from regulatory and financially corners, but operators appear to have confidence its multi-billion network will roll out as planned. Earlier this month, Open Range Communications announced a spectrum sharing and reciprocal roaming deal with LightSquared, which allows the rural broadband provider to use its L-band spectrum to build a 4G—presumably LTE—network in its markets, which would be integrated into LightSquared’s larger wholesale footprint (CP: Open Range does 180 on network plans).