LightSquared has entered into an agreement in principle to establish a multi-year strategic network partnership with Open Range Communications, a broadband wireless provider of Internet and digital phone service to rural American communities.

This partnership represents a major step toward fulfilling the promise of the Federal Communications Commission’s (FCC) National Broadband Plan, company said in a press release. 

The partnership is expected to include a licensing arrangement whereby Open Range will lease LightSquared’s L-band spectrum. This wholesale agreement will enable Open Range to sell LightSquared’s next generation satellite capacity. The partnership will also include a 4G nationwide reciprocal roaming arrangement.  Under the arrangement, the companies will collaborate on the design, build-out and operation of Open Range’s network as well as on product and service evolution.

The arrangement, which is set out in an Initial Network Agreement, is subject to the execution of definitive agreements, which are expected to be finalized as soon as possible.  It is also subject to review by the United States Department of Agriculture’s Rural Development Utilities Program, and approval of spectrum lease arrangements by the FCC.

“Open Range’s unwavering vision is for ubiquitous High Speed Internet Service at an affordable price across all of rural America. The partnership with LightSquared helps fulfill our vision of delivering the most advanced and interoperable broadband wireless communications services to un-served and underserved rural communities across America. The combination of satellite and Ancillary Terrestrial Component (ATC) services provides the only feasible way to offer meaningful ubiquitous nationwide rural broadband and meet President Obama's goals,” said Open Range Chief Executive Officer and founder Bill Beans.

“This partnership enables LightSquared to provide an enlarged and seamless nationwide 4G-LTE footprint to all of our retail partners and their customers, and is part of LightSquared’s planned commercial service which will result in billions of dollars of investment, offer consumers a new wireless competitor and create tens of thousands of jobs across America,” said Sanjiv Ahuja, chairman and chief executive officer of LightSquared.