LightSquared Inc., a 4G LTE communications network, is very close to a deal that could put up to $20 billion in the bank for Sprint Nextel over the next 15 years. According to two anonymous sources speaking to Bloomberg, the agreement would give LightSquared the ability to expand faster while letting both companies share costs in regards to network build-out.
Sprint would receive as much as $2 billion annually from LightSquared in the first stages of the contract to help pay for the network equipment and construction costs, said one of the people. Payments thereafter would vary annually based on the number of users on the LightSquared network and usage patterns, said the person. The full value of the contract will depend on those payments.
4G LTE, here we come. More →