US hedge fund Harbinger Capital Partners has announced plans to build a new nationwide LTE network using terrestrial spectrum owned by satellite networks. The New York-based firm filed its plans with US regulators on Friday after earlier being given approval to acquire SkyTerra, a leading North American satellite network operator. The new network will be an open access platform but current regulations restrict usage by large incumbent operators, which means the network could emerge as a serious competitor to LTE networks from the likes of AT&T and Verizon Wireless. “The company intends to be a wholesale only, data only network operator, providing a competitively-priced 4G option, including network, operations and spectrum,” Harbinger said in its filing. The new network will initially use 23MHz of spectrum, consisting of 8MHz of 1.4GHz terrestrial spectrum, access to 5MHz of 1.6GHz terrestrial spectrum and 10 MHz of MSS/ATC (‘L-band’) spectrum.

Harbinger said the new network will achieve population coverage of at least 260 million by 2015 (not taking into account satellite coverage), which it claims will be comparable to the coverage provided by other nationwide LTE operators. Service will begin in two trial markets – Denver and Phoenix – with a commercial launch before the third quarter of 2011 providing service to a potential market of 9 million (POP). All major markets are scheduled to be live by the end of the second quarter of 2013. According to a GigaOm report, Harbinger’s plans to build a mobile broadband network stretch all the way back to a 2003 order allowing satellite companies owning spectrum in the L and S bands to build out terrestrial networks in conjunction with their satellite networks. It adds that, under the terms of Harbinger’s acquisition of SkyTerra, the network must be a wholesale platform but that traffic from the two largest US operators (AT&T and Verizon) is limited to 25 percent, which will prevent the largest players from buying up capacity. Harbinger added that it was willing to pool its spectrum with other licensees to expand network capacity. GigaOm notes that it is expected to soon consolidate spectrum owned by Terrestar Networks, another satellite firm in which Harbinger holds a stake, and may also look to partner with a tier-two operator such as T-Mobile USA.