Photo: Via Satellite archive

After filing for bankruptcy this week, Ligado Networks sued Inmarsat Global, alleging breach of contract over a spectrum agreement between the companies. Ligado announced the suit on Jan. 7, which deals with a 2007 spectrum agreement. 

According to Ligado, Inmarsat was required to upgrade its satellite terminals to eliminate potential interference with Ligado’s service. Ligado says it paid Inmarsat over $1.7 billion over 17 years, including a $250 million lump sum for these efforts and the rights to use portions of Inmarsat’s spectrum. 

Inmarsat is now owned by Viasat.

Ligado said that when the FCC granted Ligado its license, the company was restricted from providing service near airports and waterways due to potential interference with Inmarsat terminals on airplanes and ships. 

“Inmarsat has failed to honor its obligations under the agreement by neglecting to upgrade its own satellite terminals, deliver to Ligado portions of Inmarsat’s spectrum, and assist Ligado in its efforts to gain permission from the FCC to pursue its goal of providing nationwide terrestrial wireless services to expand America’s 5G capabilities,” Ligado said. 

Ligado is seeking a court order for Inmarsat to make the upgrades, pay damages, and repay “the billions Ligado paid and lost due to Inmarsat’s intentional inaction.” 

Ligado also alleges that Inmarsat “was working with the Department of Defense and likely knew that Ligado would not be able to deploy its authorized terrestrial service at all because of the DOD,” yet continued accepting payments. 

Ligado sued the U.S. government in 2023, alleging the Department of Defense, Department of Commerce, Congress prevented Ligado from using spectrum licensed by the FCC.

This lawsuit comes after Ligado filed for Chapter 11 this week. In total, Ligado said it has $8.6 billion in debt and expects the Chapter 11 process will reduce its debt to approximately $1.2 billion. The company to continue its lawsuit against the U.S. government and continue advancing its mobile satellite plans and L-band ecosystem for its spectrum assets. 

“Ligado entered the agreement in good faith and with every intention of upholding its end of the deal,” Doug Smith, President and CEO of Ligado commented in a release. “After a prolonged effort to reach a path forward, Ligado is compelled to seek legal recourse to make Inmarsat perform its duties and pay damages for the harm it has caused.”