Updated: added references to LTE as Bloomberg updated its story.
According to a letter obtained by Bloomberg, LightSquared has struck a 15-year deal with Sprint that would have it share network expansion and equipment costs with Sprint, and also provide Long Term Evolution 4G mobile broadband services to Sprint. The information was conveyed to LightSquared's investors in a letter from Phillip Falcone, who is one of the major backers of LightSquared. Bloomberg quotes the letter as reading, "LightSquared and Sprint will jointly develop, deploy and operate LightSquared’s 4G LTE network. Sprint will become a significant customer of LightSquared's 4G LTE network." The deal between the two companies is said to be valued at $20 billion. LightSquared has been under fire of late concerning its planned network's interference with GPS systems. It has to submit a report about the issue to the Federal Communications Commission on July 1. A number of organizations, including the FAA and DoD, say that LightSquared's network, as proposed, won't work.
This brings me back to the Clearwire collaboration, then subsequent purchase made to look like an investment, then rebranding of both Xohm and Clearwire to "Clear". They announced LTE plans and deployed an actual LTE network in Arizona (Xohm was Maryland, I believe?) Then find a partner to share the build out cost, followed by a substantial investment in said partner while quietly wrapping/purchasing up loose ends (Clear) in the background (first time around it was the affiliate markets) and then systematically standing by offering no support as the new company flounders until they get to be the hero and pick up the rest of the pieces for pennies on the dollar. The real windfall in all this has been the spectrum portfolios for Sprint, noth... (continues)
Bye Bye to clearwire's future. If sprint will be getting its LTE from Lightsquared, then they no longer need to renew their contract with Clear who is short on cash, and then sprint can sale their remaining 51% equity that they have in Clearwire, or Do nothing for or with Clear until their value topples and Sprint can purchase what is left of them for dirt cheap.
sprint its not playing and please stop hating on sprint people getting the iphne 4 sept unlim plan 69.99 the best droids in the markets period!!! best 4g you like it or not sprint its heading to the top!!! feel bad for verizon lol