Sprint and LightSquared today announced a new relationship that the companies hope will help accelerate the deployment of Long Term Evolution 4G services. Under the terms of the agreement, LightSquared will pay Sprint $9 billion in cash over a period of 11 years to build and operate a nationwide LTE 4G network using LightSquared's L-Band spectrum. LightSquared is also giving Sprint $4.5 billion in credits, which can be used by Sprint to acquire up to 50% of the capacity of LightSquared's LTE network. LightSquared still plans to offer LTE wireless broadband on a wholesale level to other providers. As part of the deal, LightSquared also gains the right to roam onto Sprint's CDMA 3G network, and can bundle 3G with its wholesale broadband services. The companies say the arrangement will save them both money and help get the network up and running faster. The deal needs to meet with government approval before it can be finalized. The companies did not make mention of the GPS interference problems that LightSquared is facing, which also need to be resolved to the satisfaction of the Federal Communications Commission.



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