Sprint Nextel Poised To Cancel LightSquared Deal [Bloomberg]
Bloomberg reports that Sprint Nextel Corp. may end its 11-year network-sharing agreement withInc. as soon as next week, a potentially devastating blow for the embattled mobile broadband startup.
Under the deal struck last June, Sprint Nextel was to build and operate LightSquared’s network in exchange for $9 billion in payments and $4.5 billion in service credits. Though Sprint Nextel has extended LightSquared’s deadline to meet certain conditions under the agreement, the March 15 extension will be the last, Bloomberg reports.
The U.S. Federal Communications Commission last month said it would block LightSquared’s planned network because of concerns about GPS interference.