LightSquared and Sprint Sign 15-Year Deal
LightSquared has signed a 15-year deal with Sprint-Nextel for spectrum hosting and network services. Sprint will earn $9 billion while allowing $4.5 billion in usage credits to LightSquared in the first 11 years. LightSquared wholesale customers will have access to 4G and 3G data services in a nationwide footprint. Sprint and LightSquared indicated that their agreement is subject to resolving the ongoing GPS interference concerns and final approval by the FCC.
LightSquared continues to face unresolved claims that its terrestrial-satellite network will interference with GPS devices, and questions concerning its business deals and practices.
The Federal Aviation Administration (FAA) released a study earlier this week that shows significant interference to GPS from the LightSquared LTE network. Sen. Charles Grassley’s office also indicated that the FCC has not provided requested documents concerning early conditional approval granted to LightSquared by the FCC back in January.
For more, see this release.