It had to happen. Sprint is quitting the spectrum-hosting agreement it inked with LightSquared less than a year ago, opting to activate the clause giving it “the right to terminate the agreement if certain conditions were not met by LightSquared.”

The Kansas-based carrier also returned $65 million in prepayments LightSquared made to cover costs “that were not ultimately incurred by Sprint (click here for more information).

In the original agreement signed in June 2011, Sprint agreed to deploy and operate an LTE network capable of utilizing the 1.6 GHz spectrum licensed to or available to LightSquared. The agreement contained contingencies related to possible interference issues with LightSquared’s spectrum (click here for more information).

“Sprint has been and continues to be supportive of LightSquared’s business plans and appreciates the company’s efforts to find a resolution to the interference issues impacting its ability to offer service on the 1.6 GHz spectrum,” the Number Three U.S. wireless carrier said in a statement earlier today. “However, 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. We remain open to considering future spectrum hosting agreements with LightSquared, should they resolve these interference issues, as well as other interested spectrum holders.”

It continued, “Late last year, both companies agreed to halt deployment design and implementation of LightSquared’s network to ensure that Sprint’s Network Vision project remained on schedule. While unfortunate, termination of the agreement will have no impact on Sprint’s current customers and is not material to Sprint’s ongoing business operations. Network Vision remains on schedule and on budget, and we look forward to begin launching our 4G LTE network mid-year.”

"These regulatory delays are unfortunate because they will deprive the American people of the benefits of additional competition in the wireless industry," said Doug Smith, chief network officer and interim co-COO at LightSquared.

He continued "For LightSquared, Sprint’s decision will enhance our working capital and provide more flexibility.Sprint has been a valued partner to LightSquared and we look forward to working together in the future."

The Daily

Subscribe
Wednesday–June 18

Netflix Strikes Deal to Carry Live Channels in France

Netflix secured a carriage deal with French broadcaster TF1 to distribute its free-to-air live TV channels and VOD content on the platform. When the integration launches next summer, it’ll allow French users

Read the Full Issue
The Skinny is delivered on Tuesday and focuses on the cable profession. You'll stay in the know on the headlines, topics and special issues you value most. Sign Up

Calendar

Sep 11
2025 Faxies Awards Faxies Nominations Open! Final deadline: 4/4/25
Full Calendar

Jobs

Seeking an INDUSTRY JOB or hiring for one?
VIEW JOBS

In conjunction with our sister brand, Cynopsis, we are offering hiring managers a deep pool of media-savvy, skilled candidates at a range of experience levels and sectors. The result will be an even more robust industry job board, to help both employers and job seekers.

Contact Carley Ashley, [email protected], for more information about posting a job on the website and our Jobs newsletter, sent twice weekly to 85,000 media professionals.