LightSquared Wins 30-Day Reprieve on FCC Decision
Jan 2, 2012, 8:18 AM by Eric M. Zeman
Sprint has given LightSquared a 30-day grace period to score approval from the Federal Communications Commission to operate its Long Term Evolution network in the L-Band spectrum. Earlier this year, Sprint said LightSquared would give it a 20MHz channel of L-Band spectrum in the 1600MHz band that Sprint would use for its own LTE network. However, Sprint had the option to back out of the deal with LightSquared if the U.S. government did not approve LightSquared's L-Band spectrum use by the end of the year. The FCC has not made a final ruling on the matter, and LightSquared still faces opposition from the GPS, aviation, and military industries. Sprint has extended the December 31 deadline to January 30, giving LightSquared a bit more time to gain the necessary approval from the FCC to operate its planned LTE network. The deal with Sprint will save LightSquared about $13 billion between now and 2020.
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Sprint has given them a 30 day extension before their agreement expires and LS loses another potential customer and use of Sprints spectrum.