Overland Park, Kan. — Sprint confirmed Thursday that the company has entered into a 15-year agreement with LightSquared that will diversify the carrier’s network. The announcement came just hours after the company announced an $847 million lost in revenue.
LightSquared, a pioneer in 4G-LTE network integration, will boost Sprint’s goal to provide high-speed wireless services to its customers while paying $9 billion in cash to the nation’s third-largest carrier in exchange for spectrum, 3G roaming and network services. The company will also be required to give Sprint an additional $4.5 billion in credit for use of LightSquared’s forthcoming satellite and LTE networks, AllThingsD reported.
In return for its services, Sprint will have the option to purchase 4G capacity from the company that could appear as early as next year.
“This agreement gives LightSquared a rapid and cost-effective radio access network build,” said LightSquared chairman and CEO Sanjiv Ahuja. “With our next generation satellite already operational and our independent core network build underway, LightSquared is now well positioned to meet the fast-growing market demand for wireless broadband services with its wholesale-only integrated 4G-LTE and satellite network.”