Sprint cancels deal with Lightsquared and pays back 65 million in pre-payments

Posted on Mar 16 2012 - 3:47pm by Mike Wewerka

Sprint has official put the kibosh on their 15 year deal with Lightsquared, who would have provided the “Now Network” with spectrum for building out its new 4G LTE network. Lightsquared, after repeatedly failing to have their 1.6GHz frequency passed by the FCC (due to GPS interference) was giving one last chance, Sprint gave them until March to get the approval of the FCC, or they were out.

March arrived and the FCC still did not give Lightsquared its approval, so, today Sprint has finally put the “nail in the coffin” on its relationship with Lightsquared and in doing so, paid $65 million back to them for pre-payments that Sprint would have had to pay, but since things fell through, did not. But all is not lost, at least according to Sprint, “We remain open to considering future spectrum hosting agreements with LightSquared, should they resolve these interference issues, as well as other interested spectrum holders,” Sprint said.

For now, Sprint will continue its plan and re-use spectrum from their other services, as well as use Clearwire, who already provides spectrum for Sprint’s WiMax network, to continue their 4G LTE rollout.