Copying and distributing are prohibited without permission of the publisher
Sprint puts LightSquared deal ‘on hold’
06 January 2012
CEO Dan Hesse delays network share deal with LightSquared until FCC approves LTE deployment
Read more:
LightSquared
Sprint
Hesse
Ahuja
LTE
SkyTerra
GPS
Sprint Nextel has decided not to proceed with the network sharing deal with LightSquared until LightSquared obtains FCC approval for its proposed 4G wireless data network.
According to the Financial Times, Dan Hesse, CEO of Sprint Nextel, told a Citigroup conference: “We feel we are protected. We are not investing any more in LightSquared. We have put that all on hold for now.”
Hesse added that he expects LightSquared to solve the issues surrounding its GPS interference which has pushed its countrywide LTE network rollout plans further.
The two firms entered a 15-year partnership deal in July 2011 that allowed LightSquared — headed by former Orange executive Sanjiv Ahuja — to use Sprint’s Network Vision infrastructure. In return, LightSquared would offer Sprint $9 billion and an option to use some of the LTE capacity.
Sprint recently gave LightSquared a 30-day extension to the end of January to get regulatory approval for its network, after the previous deadline ended on December 31 2011. The major reasons for the delay in obtaining approval are concerns over alleged interference with GPS equipment.
Meanwhile, LightSquared has promoted Marc Montagner as its new CFO. Montagner previously oversaw sales and marketing for LightSquared’s predecessor satellite firm SkyTerra. GTB
Further reading from Global Telecoms Business:
LightSquared gets extension on FCC approval 03 Jan 2012
LightSquared 'may run short of cash' 20 Dec 2011
LightSquared's Sanjiv Ahuja navigates course around GPS ... 10 Aug 2011
LightSquared and Sprint sign LTE deal 29 Jul 2011
LightSquared secures $265m in funding 06 Jul 2011