Sprint is reportedly planning to walk away from its planned network-sharing deal with LightSquared as early as next week, Bloomberg reported on Wednesday. Sprint and LightSquared in June agreed to an 11-year deal that would share network expansion costs and equipment if LightSquared could secure regulatory approval for its 4G LTE network build-out. The carrier first gave LightSquared until the end of 2011 to receive FCC approval, and then extended the deadline to March 15th. The FCC blocked LightSquared’s LTE network in February, however, due to concerns that it was interfering with GPS systems. Meanwhile, LightSquared repeatedly claimed that the blame lies with the GPS industry. According to the Bloomberg’s sources, Sprint has no plans to extend the March 15th deadline and will instead kill its deal with LightSquared. Sprint is expected to return $74 million of the $310 million it has collected from LightSquared so far once the deal is terminated.
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