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Sprint close to $20 billion network deal with LightSquared

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.


Jonathan Geller is the founder of Boy Genius Report, now known as BGR, and one of the biggest tech & mobile destinations in the world.

BGR was acquired by leading digital media company PMC in April 2010 and Jonathan is President and Editor-in-chief of BGR Media, LLC. Jonathan was named to Forbes' coveted 30 under 30 list in 2016, and frequently appears as a commentator on news channels such as CNBC, Fox News, ABC News and Bloomberg.

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