Sprint said to be ending its deal with LightSquared on FridayAlex Wagner - Senior News Editor
Earlier this month we heard that Sprint was planning to axe its 15-year 4G LTE network sharing deal with LightSquared, and now a new report has surfaced claiming that it'll all be going down tomorrow. According to "people familiar with the plans" speaking to the Wall Street Journal, Sprint will announce the end of the deal tomorrow and will return around $65 million to LightSquared that it had received as prepayments. A LightSquared spokesperson declined to comment on Sprint's plans, but said that the company plans to file documents with the FCC on Friday in defense of its network plans.
Originally announced back in July of 2011, the deal between Sprint and LightSquared was intended to help the two companies build out a 4G LTE network. However, LightSquared has run into a number of stumbling blocks in its attempt to get things rolling on its network buildout. Last month the FCC said that it would reject LightSquared's application to build its LTE network over concerns that it would interfere with GPS devices.
As for where things go from here, Sprint still has an LTE partnership with Clearwire to lean on while LightSquared will continue to try and get the green light for its network by submitting the aforementioned filing to the FCC, which reportedly disputes the outside testing that its network has undergone. Tomorrow should definitely be an interesting day if this report holds true, so be sure to stay tuned for more.