Agreement worth $9 billion ratified between LightSquared and Sprint Nextel (US)

LightSquared is a wholesale network based in the USA. The company has stated that it has inked a 15-year networks sharing deal with Sprint Nextel. The finalization of the deal was being pursued by the companies since a long time, and it would encompass spectrum hosting and network services, 4G wholesale, in addition to 3G roaming.
The terms of the agreement direct LightSquared to pay up about $9 billion worth of cash to Sprint over an 11 year period, for spectrum hosting and network services, in addition to LTE and satellite purchase credits whose current estimated value stands at close to $4.5 billion.
The deal also stands Sprint in good stead, in terms of acquiring up to 50 percent of LightSquared’s expected L-Band 4G capacity. In the event, Sprint thinks better of incorporating the L-Band LTE capability as part of its 4G offering, the wholesale purchase credits will leave a window open for Sprint to get hold of access to 4G capacity by way of offsetting Sprint’s purchases of 4G capacity from LightSquared.
LightSquared is looking to bring the network capital and operating expenses down by more than $13 billion in eight years time by adopting its partnership with Sprint, than when operating as a stand-alone network. Empowered by the sealed agreement with Sprint, LightSquared has also set the completion of its network implementation date for 2014 which is one year earlier. In addition, LightSquared and Sprint have signed a 3G nationwide roaming agreement.
Earlier the preceding year, there was an 8-year agreement signed between Lightsquared and Nokia Siemens Networks, $7 billion of worth that encompassed a wide range of radio access network services; now Sprint Nextel will be providing those services.