Andre Yoskowitz
28 Jul 2011 13:02
LightSquared and Sprint have signed a 15-year deal, with the former paying Sprint to build and operate a nationwide LTE network.
The company will pay Sprint $9 billion in cash in the first 11 years, along with $4.5 billion in credits. Sprint can use those credits to acquire capacity from LightSquared once the network is up and running.
Says LS CEO Sanjiv Ahuja:
The benefit this provides is an acceleration of our buildout and at very efficient costs. This is very, very significant for LightSquared’s ability to build its business.