Mobile operator Sprint Nextel has extended by 30 days its deadline for satellite/terrestrial venture LightSquared to get regulatory approval.
The two companies announced an infrastructure sharing agreement in July, which would see LightSquared paying…
Mobile operator Sprint Nextel has extended by 30 days its deadline for satellite/terrestrial venture LightSquared to get regulatory approval.
The two companies announced an infrastructure sharing agreement in July, which would see LightSquared paying Sprint US$9bn for spectrum hosting and network services.
It would also allow Sprint to acquire up to 50% of LightSquared’s expected L-band (1.6GHz) 4G capacity.
This agreement originally had a deadline for LightSquared getting regulatory approval of 31 December. But the venture is still awaiting a decision from US authorities on whether it will be allowed to operate, as they investigate claims that its technology interferes with some GPS receivers.
A Sprint spokesman told TelecomFinance today that the 31 December deadline had been extended by 30 days.
He suggested that this delay would help to keep plans for Sprint’s network upgrade, known as “Network Vision”, on schedule.
“Until 1.6 [GHz] spectrum is approved for use, both companies believe it is prudent to pull back on expenses and stop new deployment design and implementation to ensure the Network Vision project remains on schedule,” he said.
He added that Sprint supported LightSquared’s business plans and its efforts to resolve the “potential interference issues”.
But he added that the agreement included “protections for Sprint relating to LightSquared’s requirement to receive FCC approvals”.
LightSquared said in a statement that the agreement between the companies remained intact and that “both companies remain optimistic that we will receive FCC approval early this year”.
