“Billionaire Philip Falcone’s LightSquared Inc. struck a 15-year deal with Sprint Nextel Corp. to share network expansion costs and equipment in an effort aimed at making both stronger wireless competitors,” Devin Banerjee reports for Bloomberg.
“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,” Banerjee reports. “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.”
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“LightSquared, backed by Falcone’s Harbinger Capital Partners hedge fund, has drawn questions from the Federal Communications Commission and the Federal Aviation Administration over concerns it may interfere with global- positioning systems,” Banerjee reports. “The company may cost 794 lives in aviation accidents over 10 years as it disrupts satellite-aided navigation and at least $70 billion as aircraft owners forgo the advantages of using GPS and purchase new equipment, the FAA said in a study this month.”
Read more in the full article here.
[Attribution: Electronista. Thanks to MacDailyNews Reader “Edward Weber” for the heads up.]