Printed from http://www.electronista.com

Sprint may have to give $65m back to LightSquared

updated 06:35 pm EST, Wed February 15, 2012

Will have to repay if FCC maintains work stoppage

Yesterday the US National Telecommunications and Information Administration (NTIA) advised the FCC that LighSquared's implementation of its LTE network "inavoidably" would interfere with GPS signals and recommended that the company not be allowed to continue with its deployment. The FCC then followed up by keeping in place a temporary stop to the wireless backbone provider's build out. A collateral consequence of the FCC's actions is that Sprint may have to repay $65 million back to Lightsquared that it received as part of its $9 billion deal with the beleaguered company.

Sprint closed the deal with LightSquared last July. Under the 15-year arrangement, LightSquared agreed to pay Sprint the $9 billion over 11 years for use of its wireless spectrum and network hardware. The $65 million was part of the initial payments to Sprint. If LightSquared doesn't manage to get the FCC's approval to resume its deployment by mid-March, then Sprint will be obligated to return the funds.

Sprint has already given two extensions to LightSquared in hopes that its deal would stay alive. [via Wall Street Journal (sub. required)]





By Electronista Staff
toggle

Comments

  1. facebook_Rodolfo

    Via Facebook

    Joined: Feb 2012

    -1

    Irony

    I think it's ironic that Sprint pushed and announced how against they were for the T-Mobile & AT&T merger and AT&T lost millions when they couldnt merge. Now Sprint might loose millions, and they can't afford it, it's funny how Karma works.

Login Here

Not a member of the MacNN forums? Register now for free.

toggle

Network Headlines

toggle

Most Popular

Advertisement

Recent Reviews

Neurio Intelligent Home Monitor

The recently released Neurio Intelligent Home Monitor is a piece of hardware that, when integrated into a home's breaker box, monitors ...

Apple 13-inch MacBook Pro (Early 2015)

Although the new darling of the Apple MacBook line up is the all-new MacBook, Apple has given its popular 13-inch MacBook Pro with Ret ...

Seagate Wireless

It seems like no matter how much internal storage is included today's mobile devices, we, as users, will always find a way to fill the ...

Advertisement

toggle

Most Commented

 
toggle

Popular News