Sprint and LightSquared had entered into an 11-year agreement last June to share network expansion costs if LightSquared could get regulatory approval for its LTE rollout plan. LightSquared was debating with the FCC about alleged GPS interference on the 1.6 GHz spectrum, and Sprint had given them a six-week deadline to sort it all out. Well, the six weeks is now up, and Sprint has decided to terminate the agreement, saying the following:
“…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…
…Per the terms of the agreement, Sprint has returned $65 million in prepayments LightSquared made to cover costs that were not ultimately incurred by Sprint.”
Full press release after the break.