Reston, Va. – Wireless carrier Sprint said on Friday that it has terminated a 15-year deal it signed last summer to build a 4G LTE network utilizing wireless spectrum from Reston-based LightSquared.
The news comes a month after the Federal Communications Commission (FCC) rejected LightSquared’s plans for a nationwide mobile broadband network, following a federal report that found its technology would harm GPS signals.
“Due to these unresolved issues, and subject to the provisions of the agreement, Sprint has elected to exercise its right to terminate the agreement announced last summer,” the company said in a statement. “We remain open to considering future spectrum hosting agreements with LightSquared, should they resolve these interference issues.”
Sprint said it has returned $65 million in prepayments that LightSquared had made to the company. In a statement, LightSquared said the decision is “in the best business interests of both companies,” and “not unexpected given the regulatory delays.”
This article was also published in Potomac Tech Wire.
Related links:
http://newsroom.sprint.com/article_display.cfm?article_id=2211
http://www.lightsquared.com/press-room/press-releases
