LightSquared strikes a 15-year deal with Sprint

LightSquared Inc. has been able to secure a 15-year deal with Sprint Nextel corp. to allow it to share network expansion and equipment costs with Sprint and to share its 4G network with them as well.

LightSquared’s own, billionaire Phillip Falcon, asked Harbinger Capital Partners in a letter to back this $20 billion deal.

“LightSquared and Sprint will jointly develop, deploy and operate LightSquared’s 4G LTE network,” according to the letter. “Sprint will become a significant customer of LightSquared’s 4G LTE network.”

Sprint has been losing customers for the past four years mainly due to its poor network coverage, and might be looking to strengthen its 4G WiMax network deployment by using LightSquared’s network. LightSquared, on the other hand, has been taking a lot heat about how their network has been interfering with GPS systems.

Neither Sprint or LightSquared have commented about this matter.

via Bloomberg Businessweek