Insiders Suggest Sprint Planning to End Deal with Falcone’s LightSquared
By Karla Robinson
March 8, 2012
March 8, 2012
- Sprint had an agreement with LightSquared to build and operate its national wireless network for 11 years. In return, LightSquared agreed to pay Sprint $9 billion and another $4.5 billion in service credits.
- However, according to two sources familiar with the project, Sprint could be quitting the partnership as billionaire Philip Falcone’s LightSquared gets hung up with the FCC.
- Concerned over interference with global-positioning systems, the FCC said it would block LightSquared’s wireless venture. While the company looks for a resolution, Sprint’s activities have been on hold.
- Sprint received an advanced payment of $310 million for start up costs and it will keep about $236 million if the partnership falls through.
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