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Sprint to end LTE network deal with LightSquared by next week, says Bloomberg

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A new report from Bloomberg says that Sprint could be ending its deal with LightSquared as early as next week.

LightSquared Logo 600
LightSquared Logo 600

Things are going from bad to worse for LightSquared, with Bloomberg reporting that Sprint could end its partnership with the company as early as next week. The two signed a 15-year agreement last summer to build a new nationwide LTE network, however the FCC has since denied LightSquared's application due to GPS interference concerns. Sprint has already granted several extensions, including an additional six weeks in January, but Bloomberg's sources say that no further extensions are coming. LightSquared has until March 15th to meet certain conditions of its agreement with Sprint, but it's not clear how — or if — the company plans to work around the FCC's decision, which it says is based on "flawed conclusions." The news comes soon after LightSquared laid off nearly half of its 330-person workforce and defaulted on a payment of $56.25 million to UK-based partner Inmarsat. Should Sprint cancel the deal as expected, it will be forced to return $65 million that was paid out at the beginning of the deal — though that probably won't be much consolation for LightSquared at this point.