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Sprint, LightSquared pen LTE deal

Tessa Reed
By Tessa Reed, Journalist
Johannesburg, 03 Aug 2011

Sprint, LightSquared pen LTE deal

Sprint and LTE technology provider LightSquared last week revealed a 15-year deal that gives Sprint $9 billion in cash, primarily for spectrum hosting and LTE network services it would provide LightSquared, according to ComputerWorld.

Sprint also has the option to buy LTE capacity from LightSquared, which could allow Sprint to move beyond its current commitment to Wimax as a fast 4G network service.

According to CNet, under the terms of the 15-year deal, LightSquared will also pay Sprint an estimated $4.5 billion in credits for LTE and satellite equipment. In exchange, Sprint will host LightSquared's spectrum and provide network services, while LightSquared will have roaming access to Sprint's 3G network.

The agreement allows LightSquared to get a jump-start on building a network without actually incurring the cost of paying for much of the equipment. The company says the agreement will allow it to save out on $13 billion in capital investments and operating costs over the next eight years. It also plans to hit its target of covering 260 million Americans by 2014, a year ahead of the mandate from the Federal Communications Commission.

Connected Planet reported that LightSquared chief marketing officer Frank Boulben said all the pieces have fallen into place for the launch of its long-term evolution launch in the fourth quarter-all of the pieces save one. LightSquared still needs final FCC approval to move forward with its terrestrial network plans.

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