Sprint Nextel entered into a 15-year agreement with LightSquared, which is building an integrated 4G LTE wireless broadband and satellite network, for spectrum hosting and network services under which LightSquared will pay Sprint $13.5 billion over the first 11 years.
Under the agreement announced Thursday, LightSquared will pay Sprint to build and operate a nationwide LTE network that hosts L-Band spectrum licensed to or available to LightSquared. In turn, LightSquared can sell its 4G broadband capacity produced through this spectrum hosting relationship to Sprint, other wireless carriers and retail partners.
The companies said the agreement is subject to LightSquared's obtaining resolution and approval from the Federal Communications Commission of certain interference issues involving terrestrial use of the L-Band spectrum.
The Federal Aviation Administration released a study Wednesday that found LightSquared's LTE network would introduce significant GPS interference -- although LightSquared has backed off that original plan.
