LightSquared, Sprint (S) Reach Multi-Billion Network Build-Out Deal
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Philip Falcone's Harbinger Capital Partners announced late Friday LightSquared has signed a 15-year agreement with Sprint Nextel (NYSE: S) to build and operate a planned new wireless network.
Falcone disclosed the development in a letter to investors.
LightSquared plans to build a national, high-speed 4G LTE network, which it will then lease to other wireless providers that want to offer high-speed Internet to customers.
The deal, valued at about $20 billion, will share expansion costs with Sprint. LightSquared will install its equipment on towers owned by Sprint.
Falcone has planned to offer coverage for 92 percent of the U.S. by 2015.
The deal should be a boon for Sprint as well, as the Overland Park, KS-based mobile provider looks to offer its customers more, but doesn't want to bog down its own network.
Bloomberg first reported the two reached an accord earlier in June.
The deal might put pressure on Clearwire (Nasdaq: CLWR), which is rolling out its own 4G network on WiMax technology. Sprint currently uses Clearwire's network for its 4G coverage.
Falcone disclosed the development in a letter to investors.
LightSquared plans to build a national, high-speed 4G LTE network, which it will then lease to other wireless providers that want to offer high-speed Internet to customers.
The deal, valued at about $20 billion, will share expansion costs with Sprint. LightSquared will install its equipment on towers owned by Sprint.
Falcone has planned to offer coverage for 92 percent of the U.S. by 2015.
The deal should be a boon for Sprint as well, as the Overland Park, KS-based mobile provider looks to offer its customers more, but doesn't want to bog down its own network.
Bloomberg first reported the two reached an accord earlier in June.
The deal might put pressure on Clearwire (Nasdaq: CLWR), which is rolling out its own 4G network on WiMax technology. Sprint currently uses Clearwire's network for its 4G coverage.
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