LightSquared, a long term evolution wireless broadband communications company and Sprint Nextel, a wireless telecommunications company, struck a 15-year deal to share costs of network expansion and equipment.
LightSquared will pay Sprint to build and operate a nationwide wireless network that uses high-speed long-term evolution, or LTE, technology, the companies said in a statement today. During an 11-year period, LightSquared will pay Sprint $9 billion in cash and credits valued at about $4.5 billion. Sprint can use the credits to acquire capacity from LightSquared, which plans to offer wholesale wireless service to consumer electronics companies and other telecommunications operators.
Through the new deal, LightSquared seeks to expand its planned wireless network more rapidly, while Sprint hopes it will provide much-needed revenue after the company reported a loss for the 15th consecutive quarter.
Read more at Bloomberg.