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LightSquared Signs $9 Billion Network Sharing Deal with Sprint Nextel

29 июля 2011

USA based LTE wholesale network, LightSquared says that it has finally signed the long-anticipated 15-year networks sharing deal with Sprint Nextel, that includes spectrum hosting and network services, 4G wholesale, and 3G roaming.

Under the terms of the agreement, during an 11 year period, LightSquared will make payments to Sprint of approximately US$9 billion in cash for spectrum hosting and network services as well as LTE and satellite purchase credits which are currently estimated to be valued at approximately US$4.5 billion.

The agreement also provides Sprint the opportunity to purchase up to 50 percent of LightSquared's expected L-Band 4G capacity. The wholesale purchase credits will provide Sprint the option to obtain access to 4G capacity by offsetting Sprint's purchases of 4G capacity from LightSquared, should Sprint elect to incorporate the L-Band LTE capability as part of its 4G offering.

LightSquared added that it expects to lower network capital and operating expenses by more than $13 billion over the next eight years in comparison with the cost of a stand-alone network build. It also brings forward the network rollout completion date by one year to 2014. LightSquared has also entered into a 3G nationwide roaming agreement with Sprint.

Last year, Lightsquared signed an 8-year deal with Nokia Siemens Networks worth US$7 billion for a broad range of services including all the radio access network services that will now provided to LightSquared by Sprint Nextel.

In a statement, the company confirmed that the agreement between NSN and LightSquared takes into consideration the Sprint Nextel agreement and is scoped to support LightSquared's national build out. The signed agreement is focused on the design, construction and support of an independent Core network and is an extension of the two companies' efforts over the past year.


Источник: Cellular news

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