LightSquared – Sprint Agree to 15-Year Network Accord
Posted By RichC on June 21, 2011
Looks like a technology change in Sprint’s 4G strategy? The Clearwire 4G / Sprint future is not as ‘clear’ as it once was now that the LTE networks seem to be the path forward. No announcement from Sprint just yet, but Lightsquared seems to be boasting about the billions headed their way from Sprint.
Billionaire Philip Falcone’s LightSquared Inc. reached a 15-year deal with Sprint Nextel Corp. (S) to share network expansion costs and equipment, and to provide high-speed wireless service to the phone company.
Falcone told Harbinger Capital Partners hedge fund investors yesterday about the accord in a letter obtained by Bloomberg News. The companies were discussing a deal valued at as much as $20 billion, people familiar with the matter said earlier this month.
“LightSquared and Sprint will jointly develop, deploy and operate LightSquared’s 4G LTE network,” according to the letter. “Sprint will become a significant customer of LightSquared’s 4G LTE network.”
via bloomberg.com
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