NextNav NN -20.90%↓ announced it had signed an agreement to acquire spectrum licenses covering an additional 4 MHz in the lower 900 MHz band for as much as $50 million from Telesaurus Holdings and Skybridge Spectrum Foundation. The acquired licenses, which are in the same lower 900 MHz band as the company’s current spectrum, will bring NextNav’s total to 3.5 billion MHz-PoPs of low band spectrum.
The spectrum will paid for through a combination of cash and NextNav common stock, the company said. Approximately $2.5 million will be paid in cash due within 30 days of official approvals, including the Federal Communications Commission, the company said.
“Acquiring these licenses in the same lower 900 MHz band as our current licensed spectrum will provide NextNav with broader capacity to advance and strengthen PNT services in the future,” said NextNav CEO Mariam Sorond, in a statement.
The deal, as well as the recent Iridium IRDM -5.07%↓ purchase of Satelles, was highlighted in a published report saying that the U.S. government was seeking reliable alternatives to GPS.
In other company news, NextNav reported an increase in revenue of $1.2 million for the fourth quarter that ended Dec. 31, 2023. The company reported an operating loss of $19.9 million and a net loss of $16.4 million for the three months.
