Sprint planning to kill massive LightSquared LTE deal next week
Sprint may be ready to end its LightSquared LTE deal 10 years early
A new report suggests that Sprint is planning to bail on the massive LTE deal it signed with LightSquared last year, as early as next week.
If you recall, last July, Sprint and LightSquared entered into a deal that gave LightSquared 11 years worth of spectrum access in exchange for $9 billion in cash, $4.5 billion in LTE service credits and access to LightSquared's burgeoning 4G LTE network.
However, the deal quickly went south after the FCC revoked approval for LightSquared's network as its use of the L-Band radio spectrum was found to interfere witih GPS receivers.
Sprint gave LightSquared six weeks to get back in good graces with the FCC, but the March 15th deadline is looming and no progress has been made thus far.
To make matters worse, LightSquared recently slashed its workforce by 45 percent and lost its CEO.
So, it should come as no surprise that Bloomberg is reporting Sprint is preparing to pull the plug. A securities filing last month suggests that Sprint would return $74 million of the $310 million it has collected from LightSquared to end the deal.