Sprint officially ends LightSquared LTE contract
Just as everyone expected, Sprint has officially announced its shutting down cooperation with 4G LTE wannabe provider LightSquared. The carrier will return payments of $65 million to LightSquared.
“Sprint has been and continues to be supportive of LightSquared’s business plans and appreciates the company’s efforts to find a resolution to the interference issues impacting its ability to offer service on the 1.6 GHz spectrum. However, due to these unresolved issues, and subject to the provisions of the agreement, Sprint has elected to exercise its right to terminate the agreement announced last summer,” Sprint said in an official statement.
If LightSquared solves the interference issue, Sprint made it clear that it’s willing to cooperate with it in the future.
LightSquared focus on the negative impact this will have for the American population which will be deprived of LTE access.
“For LightSquared, Sprint’s decision will enhance our working capital and provide more flexibility,” interim LightSquared co-COO Doug Smith said in a statement.
This won’t affect Sprint’s plans to launch its first 4G LTE markets mid-year.
source: AllThingsD
Sprint Elects to Terminate Spectrum Hosting Agreement with LightSquared
OVERLAND PARK, Kan.--(BUSINESS WIRE)--Sprint (NYSE: S) today issued the following statement regarding the spectrum hosting agreement it signed with LightSquared in June 2011. Per the agreement, Sprint agreed to deploy and operate an LTE network capable of utilizing the 1.6 GHz spectrum licensed to or available to LightSquared. The agreement contained contingencies related to possible interference issues with LightSquared's spectrum, including Sprint’s right to terminate the agreement if certain conditions were not met by LightSquared.
“Per the terms of the agreement, Sprint has returned $65 million in prepayments LightSquared made to cover costs that were not ultimately incurred by Sprint.”
“Sprint has been and continues to be supportive of LightSquared’s business plans and appreciates the company’s efforts to find a resolution to the interference issues impacting its ability to offer service on the 1.6 GHz spectrum. However, due to these unresolved issues, and subject to the provisions of the agreement, Sprint has elected to exercise its right to terminate the agreement announced last summer. We remain open to considering future spectrum hosting agreements with LightSquared, should they resolve these interference issues, as well as other interested spectrum holders.
“Late last year, both companies agreed to halt deployment design and implementation of LightSquared’s network to ensure that Sprint’s Network Vision project remained on schedule. While unfortunate, termination of the agreement will have no impact on Sprint’s current customers and is not material to Sprint’s ongoing business operations. Network Vision remains on schedule and on budget, and we look forward to begin launching our 4G LTE network mid-year.
“Per the terms of the agreement, Sprint has returned $65 million in prepayments LightSquared made to cover costs that were not ultimately incurred by Sprint.”
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