The network sharing agreement between LightSquared and Sprint Nextel is on hold until LightSquared gets regulatory approval for its planned network, Sprint Nextel CEO Dan Hesse has said according to the Financial Times.
Hesse made the remarks at a…
The network sharing agreement between LightSquared and Sprint Nextel is on hold until LightSquared gets regulatory approval for its planned network, Sprint Nextel CEO Dan Hesse has said according to the Financial Times.
Hesse made the remarks at a conference in San Francisco, where he also suggested that Sprint was not currently planning to make further investments in LightSquared.
In late July 2011, Sprint and LightSquared announced a 15 year infrastructure partnership worth US$13.5bn. Under the agreement the venture would pay Sprint US$9bn in cash during an 11-year period in return for spectrum hosting and network services. It would also grant Sprint LTE and satellite purchase credits, which the venture estimates are worth around US$4.5bn in total.
The partnership is subject to LightSquared solving its ongoing GPS interference problems, which have so far been in the way of receiving regulatory approval for deployment of its network.
A deadline agreed between the two companies for receiving regulatory approval expired on 31 December, but Sprint decided not to pull out of the venture at the end of 2011 and instead grant LightSquared an extension by one month to solve the issues.
