Sprint Nextel has given six additional weeks until mid-March to LightSquared to get approval from Federal Communications Commission (FCC) for the development of its nationwide 4G LTE Network, otherwise it will finish the agreement as reported by Dow Jones Newswires.
“Sprint and LightSquared have extended their agreement until mid-March to give LightSquared additional time to address issues associated with the 1.6 spectrum,” Sprint said in a statement on Tuesday. It also gave more details about a temporary stop to work on the project pending the regulatory approval, “At the end of 2011, Sprint and LightSquared jointly decided to pull back on expenses and stop new deployment design and implementation. All work has been halted. This helps ensure Sprint’s Network Vision project remains on schedule.”
LightSquared has concerns related to the network interference with GPS receivers.
This is the second time that Sprint has given LightSquared an extension as it has already given it an extension of 30 days to get approval from FCC at the end of the year 2011.
“Sprint and LightSquared have agreed to extend our network agreement through mid March,” Terry Neal, head of public relations for LightSquared, said in a statement. “Sprint continues to support our business plan to bring wireless broadband to more than 260 million Americans and our ongoing efforts to work with regulatory agencies to resolve interference concerns.”
Sprint and LightSquared dealt that they will work together for 15 years but after the FCC’s approval. The contract which was signed by the two companies last year assured that they will share wireless spectrum, network construction and equipment costs. According to the deal, it was also planned that Sprint will use the LightSquared network for the new LTE-based 4G service.