Sprint officially ends LightSquared LTE contract

Just as everyone expected, Sprint has officially announced its shutting down cooperation with 4G LTE wannabe provider LightSquared. The carrier will return payments of $65 million to LightSquared.

“Sprint has been and continues to be supportive of LightSquared’s business plans and appreciates the company’s efforts to find a resolution to the interference issues impacting its ability to offer service on the 1.6 GHz spectrum. However, due to these unresolved issues, and subject to the provisions of the agreement, Sprint has elected to exercise its right to terminate the agreement announced last summer,” Sprint said in an official statement.

The nation’s third-largest carrier signed a huge, 15-year deal with LightSquared, hoping to use the provider for its LTE rollout in June 2011. However, LightSquared faced interference issues with the bands it uses. The Federal Communications Commission question that LTE provider on those issues and at the danger of losing valuable resources and time, Sprint brought up clauses in the agreement allowing it to end the deal prematurely.

If LightSquared solves the interference issue, Sprint made it clear that it’s willing to cooperate with it in the future.

LightSquared focus on the negative impact this will have for the American population which will be deprived of LTE access. 

“For LightSquared, Sprint’s decision will enhance our working capital and provide more flexibility,” interim LightSquared co-COO Doug Smith said in a statement.