Sprint Nextel has confirmed that it has decided to terminate its spectrum hosting agreement with LightSquared, originally signed in June 2011. Under the terms of the agreement, Sprint agreed to deploy and operate an LTE network capable of using the 1.6 GHz spectrum licensed to or available to LightSquared. Sprint said it continued to support LightSquared's business plans and recognised the company's efforts to find a resolution to the interference issues impacting its ability to offer service on the 1.6 GHz spectrum. It added that it remained open to considering future spectrum hosting agreements with LightSquared if they resolve these interference issues. Per the terms of the agreement, Sprint has returned USD 65 million in pre-payments LightSquared made to cover costs that were not ultimately incurred by Sprint. LightSquared said that Sprint's decision was in the the best business interests of both companies, and was not unexpected given the regulatory delays that have impacted LightSquared. Doug Smith, chief network officer and interim co-chief operating officer, said that Sprint's decision would enhance LightSquared's working capital and provide more flexibility. In a statement, LightSquared said that it would continue to focus on providing mobile satellite voice and data communications to private industry, public safety organizations and emergency responders across the US and North America.
