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

Industry Kicks off ‘Go Addressable’ Initiative

Distributors and TV brands came together Thursday in support of an industry initiative to accelerate efforts to make it easier for advertisers to incorporate addressable TV into their campaigns.

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

Jul 16
Diversity List – 2021 Nominations Due: July 16, 2021
Sep 10
Most Powerful Women – 2021 Nominations Due: Sept 10, 2021
Dec 7
Most Powerful Women CelebrationSave the Date!
Full Calendar

Jobs

Seeking an INDUSTRY JOB?
VIEW JOBS

Hiring? 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 John@cynopsis.com for more information.