Sprint to Stop Sending LightSquared Money for Now
Article Comments 13
Jan 5, 2012, 6:53 PM by Eric M. Zeman
Sprint will not give LightSquared any more cash until the company's problems with the Federal Communications Commission are resolved, said Sprint CEO Dan Hesse today at an investor conference. LightSquared hopes to launch a Long Term Evolution 4G mobile broadband network across much of the U.S. using L-band satellite spectrum. It is still awaiting government approval, and tests have shown that its network interferes with nearby GPS signals. The company demanded the FCC allow it to commence operations, but the FCC has yet to make a decision. "The companies have agreed to realigning our deployment timeline to coincide with potential FCC actions," said spokesperson Scott Sloat in an e-mail sent to Bloomberg. Sprint has given LightSquared until the end of January to score FCC approval before it backs out of the network-leasing deal the companies struck in 2011.
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Slightyly off topic... but is Lightsquared getting screwed here?
I'm not asking from a company v company perspective. I'm asking from a legal perspective. If LightSquared is correct when they claim that the rest of the GPS industry is using frequencies outside of it's legally al
This essentially is an eviction notice by Sprint. Sprint knows that there is no way LightSquared will get approval from the FCC. Sprint's focus will be better used on Clearwire. Sprint's 5Mhz x 5Mhz will be completely "under-nourished" within a quick time span compared to AT&T Mobility and Verizon Wireless by the end of this year. Clearwire's 2.5Ghz spectrum holdings will become Sprint's greatest asset in adding a substantial amount of capacity to their network. This will catapult Sprint to a very potent network position.
It's always good--