Sprint Nextel is going to terminate its 15 years contract with LightSquared Inc. and has returned $65 million in prepayments to the wireless startup as reported by The Wall Street Journal.
The end of the contract would be announced by Friday. The end of contract would cause harm to funding issues for the new operator, which was expecting to compete with AT&T Inc., Verizon Wireless and other companies in selling its service to carriers, which are in search for extra capacity. Moreover, LightSquared had estimated that the deal with Sprint would save $13 billion in costs by the end of the decade. Continue reading
Clearwire Corp. has signed agreement with Sprint Nextel Corp. in which there is an offering of $1.6 billion to Clearwire in the form of funding.
Shares of Clearwire rose by 22% to $2.18 at 11:01 a.m. New York time after moving to as high as 37% as Clearwire made $237 million interest payment on notes due today as reported by Bloomberg.
Clearwire is dependent on Sprint for the majority of its fresh users. After the release of the results of third-quarter last month, Clearwire cautioned to raise new funds as it may not have adequate capital in a year. Moreover, 4G customer Sprint is working on to assemble its own high speed mobile broadband network and adds iPhone clientele to its 3G network. Continue reading
AT&T has sold more than 200,000, in pre-orders, of iPhone-4S in the first 12 hours of its release.
Although the announcement of iPhone-4S failed to impress fans of iPhone, who were waiting for the new iPhone for more than 15 months but according to Wall Street analysts, the hardware and software revaluation will have positive impacts on buyers. Continue reading