RESTON, Va. and NEW YORK, Nov. 3, 2011 /PRNewswire/ -- LightSquared™, a wholesale carrier building a nationwide wireless broadband network that will create consumer choice and drive industry innovation, and m-banco, a U.S.-based company that delivers innovative mobile communications and financial services to the U.S. Latino community, have signed a wholesale agreement that will enable m-banco customers to conduct financial transactions and data and voice communications using mobile devices.
With m-banco's Mobile Money solution, customers can use mobile devices to conduct data and voice communications and banking services such as wire transfers, device-to-device payments and device-to-ATM transactions. The solution is designed for customers who do not have a bank account, either by choice or for other reasons such as not having enough money to open an account or being unable to afford high bank fees. In fact, according to the Federal Deposit Insurance Corporation (FDIC), 8 percent of American households do not have a checking or savings account, a portion of the population often referred to as the "unbanked." Using LightSquared's nationwide 4G-LTE network, m-banco will provide high-speed data services to support VOIP communications and Mobile Money transactions.
"We are committed to delivering advanced wireless services to our customers so they can conduct voice communications and wireless transactions with friends, family and financial institutions in the U.S. and around the world," said Randolph Kantorowicz-Toro, chairman and chief executive officer of m-banco. "LightSquared's network and wholesale-only model will essentially turn m-banco devices into 'mobile wallets' so our customers can conduct financial transactions at any time, at reasonable rates and regardless of location."
"Once again LightSquared has announced a partnership with an emerging company that is poised to use advanced wireless technology to deliver unique solutions to their customers," said Sanjiv Ahuja, chairman and chief executive officer of LightSquared. "We are pleased to partner with m-banco whose commitment to the Latino market aligns with our plans to provide wireless broadband services to underserved communities throughout the United States."
LightSquared's mission is to revolutionize the U.S. wireless industry. With the creation of the first-ever, wholesale-only nationwide 4G-LTE network integrated with satellite coverage, LightSquared offers people the speed, value and reliability of universal connectivity, wherever they are in the United States. As a wholesale-only operator, LightSquared will deploy an open 4G wireless broadband network to be used by existing and new service providers to sell their own devices, applications and services – at a competitive cost and without retail competition from LightSquared. The deployment and operation of LightSquared's network represent more than $14 billion of private investment over the next eight years. For more information about LightSquared, please go to www.LightSquared.com, www.facebook.com/LightSquared and www.twitter.com/LightSquared.
m-banco is a U.S. financial, telecommunications and entertainment service provider with licenses and permits to operate in the U.S., Central America and South America and offer its services locally and internationally.
The company's strategy is to leverage its global infrastructure and technology to provide mobile banking services (branchless banking) for a low monthly fee to the millions of travelers, immigrants and unbanked in the United States and emerging countries. Services can be bundled with unlimited national and international long-distance telephone, film and video entertainment. For more information please go to www.m-banco.com.
CONTACT: Chris Stern
Burson-Marsteller for LightSquared
Tel: (202) 530-4737
Forward Looking Statement
This release contains forward-looking statements and information regarding LightSquared and its business. Such statements are based on the current expectations and certain assumptions of LightSquared's management and are, therefore, subject to certain risks and uncertainties. The forward-looking statements expressed herein relate only to information as of the date of this release. LightSquared has no obligation to update these forward-looking statements to reflect events or circumstances after the date of this release, nor is there any assurance that the plans or strategies discussed in this release will not change.