Satellite operator Ligado Networks, currently undergoing Chapter 11 bankruptcy proceedings, has filed a lawsuit against Viasat's Inmarsat subsidiary, accusing it of breaching a long-standing partnership related to L-band spectrum.
Ligado Networks, which is embroiled in a legal battle with the U.S. government over its delayed 5G plans, filed the lawsuit on January 7. The company is seeking financial damages and restitution for more than $1.7 billion it claims to have paid to Inmarsat under a 2007 cooperation agreement.
At the core of the dispute is Ligado's allegation that Inmarsat failed to fulfill its obligations related to the provision of L-band spectrum for Ligado's planned terrestrial 5G network. According to Ligado, Inmarsat was responsible for upgrading its satellite terminals to prevent interference with Ligado's network. However, Ligado argues that Inmarsat did not address terminal interference issues, which ultimately delayed the Federal Communications Commission's (FCC) approval for the network in 2020, particularly near airports and waterways.
The lawsuit also claims that the delays and interference concerns contributed to the derailment of Ligado's ground-based 5G plans, which were further impacted by GPS interference worries from both industry and government agencies.
“Over a 17-year period, Ligado paid Inmarsat over $1.7 billion in fees, while Inmarsat willfully avoided performing its contractual duties to upgrade its own satellite terminals,” Ligado CEO Doug Smith said in a statement. “In fact, due to its choice to delay upgrading its terminals, Inmarsat is likely still years away from completing the upgrades required under the Agreement.”
In response, a spokesperson for U.S.-based Viasat, which acquired Inmarsat in 2023, dismissed the lawsuit, calling it without merit. “This legal filing has absolutely no legal merit and is replete with unfounded allegations of fact,” the spokesperson said, adding that Viasat would “vigorously defend against this transparent tactic filed in connection with Ligado's bankruptcy filing.
Ligado also accuses Inmarsat of failing to deliver certain portions of the spectrum outlined in their cooperation agreement, further complicating the dispute. The company's legal troubles extend beyond its fight with Inmarsat, as Ligado has also launched legal action against the U.S. government, alleging that federal agencies obstructed its 5G plans in favor of Department of Defense (DoD) use of the spectrum.
The U.S. Department of Justice has declined to comment on the ongoing case.
Despite the setbacks to its terrestrial 5G ambitions, Ligado continues to provide satellite connectivity services to government and enterprise clients through its SkyTerra-1 and MSAT-2 geostationary satellites. The company is seeking to restructure its operations under Chapter 11 bankruptcy protection, with plans to convert $7.8 billion in debt into equity, reducing its total debt to $1.2 billion.
As part of its restructuring, Ligado has proposed a potential agreement to lease its spectrum holdings to AST SpaceMobile, a low Earth orbit satellite operator. AST SpaceMobile plans to use the spectrum to expand its direct-to-smartphone connectivity services.
