Sprint Announce Deal for 4G LTE

[ZMc1834]

From a Sprint Press Release this morning:

News Releases

28 July 2011
Sprint Nextel and LightSquared Announce Spectrum Hosting and Network Services Agreement
NEWS HIGHLIGHTS:

LightSquared enters into a Spectrum Hosting and Network Services Agreement with Sprint that is expected to result in substantial savings for LightSquared and accelerate completion of LightSquared’s nationwide 4G-LTE network
Sprint has option to purchase 4G capacity from LightSquared
LightSquared enters into a nationwide 3G Roaming Agreement with Sprint

Multimedia Gallery


Home - LightSquared (Graphic: LightSquared)
RESTON, Va. & OVERLAND PARK, Kan. (BUSINESS WIRE), July 28, 2011 - LightSquared™, the nation’s first wholesale-only integrated 4G-LTE wireless broadband and satellite network, and Sprint Nextel (NYSE: S) announced today they have entered into a 15-year agreement that includes spectrum hosting and network services, 4G wholesale, and 3G roaming.

This spectrum hosting arrangement leverages Sprint’s investment in its innovative, multi-year Network Vision plan. Under the agreement, LightSquared will pay Sprint to deploy and operate a nationwide LTE network that hosts L-Band spectrum licensed to or available to LightSquared. As a wholesale-only carrier with separate core network operations, LightSquared can sell its 4G broadband capacity produced through this spectrum hosting relationship to Sprint, other wireless carriers, and retail partners.

Under the terms of the agreement, during an 11 year period, LightSquared will make payments to Sprint of approximately $9 billion in cash for spectrum hosting and network services as well as LTE and satellite purchase credits which are currently estimated to be valued at approximately $4.5 billion. The agreement also provides Sprint the opportunity to purchase up to 50 percent of LightSquared’s expected L-Band 4G capacity. The wholesale purchase credits will provide Sprint the option to obtain cost-competitive access to 4G capacity by offsetting Sprint’s purchases of 4G capacity from LightSquared, should Sprint elect to incorporate the L-Band LTE capability as part of its 4G offering.

This agreement is expected to lower network capital and operating expenses for LightSquared by more than $13 billion over the next eight years in comparison with the cost of a stand-alone network build. LightSquared expects the deployment of the nationwide 4G-LTE network to be completed more than one year ahead of the Federal Communications Commission (FCC) mandate to cover 260 million Americans by 2015.

LightSquared has also entered into a 3G nationwide roaming agreement with Sprint. With access to Sprint’s 3G nationwide network, LightSquared’s wholesale customers will be able to offer combined 4G/3G data services as soon as LightSquared launches its first 4G markets in 2012.

“This spectrum hosting agreement with LightSquared allows Sprint to more efficiently use its Network Vision platform,” said Steve Elfman, president of Network Operations and Wholesale for Sprint. “In addition to improving our cash flow, it provides additional options and flexibility in how we meet our customers’ future capacity needs.”

“This agreement gives LightSquared a rapid and cost-effective radio access network build,” said LightSquared Chairman and CEO Sanjiv Ahuja. “With our next generation satellite already operational and our independent core network build underway, LightSquared is now well positioned to meet the fast-growing market demand for wireless broadband services with its wholesale-only integrated 4G-LTE and satellite network.”

The agreement is subject to LightSquared's obtaining resolution and FCC approval of certain interference issues involving terrestrial use of the L-Band spectrum.

“We believe LightSquared, in cooperation with the FCC and adjacent spectrum users, is taking proactive steps to address and resolve these issues in a timely manner,” said Elfman.

About LightSquared

LightSquared’s mission is to revolutionize the U.S. wireless industry. With the creation of the first-ever, wholesale-only nationwide 4G-LTE network integrated with satellite coverage, LightSquared offers people the speed, value and reliability of universal connectivity, wherever they are in the United States. As a wholesale-only operator, LightSquared will deploy an open 4G wireless broadband network to be used by existing and new service providers to sell their own devices, applications and services – at a competitive cost and without retail competition from LightSquared. The deployment and operation of LightSquared’s network represent more than $14 billion of private investment over the next eight years. For more information about LightSquared, please go to Home - LightSquared, LightSquared - Telecommunication - Reston, VA | Facebook and LightSquared (LightSquared) on Twitter.

About Sprint Nextel

Sprint Nextel offers a comprehensive range of wireless and wireline communications services bringing the freedom of mobility to consumers, businesses and government users. Sprint Nextel served more than 51 million customers at the end of 1Q 2011 and is widely recognized for developing, engineering and deploying innovative technologies, including the first wireless 4G service from a national carrier in the United States; offering industry-leading mobile data services, leading prepaid brands including Virgin Mobile USA, Boost Mobile, and Assurance Wireless; instant national and international push-to-talk capabilities; and a global Tier 1 Internet backbone. Newsweek ranked Sprint No. 6 in its 2010 Green Rankings, listing it as one of the nation’s greenest companies, the highest of any telecommunications company. You can learn more and visit Sprint at Cell Phones, Mobile Phones & Wireless Calling Plans from Sprint or Sprint | Facebook and Sprint (sprint) on Twitter.

Forward Looking Statement

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995

This news release includes “forward-looking statements” of Sprint and LightSquared within the meaning of the securities laws. The statements in this news release regarding expected financial savings, new technologies, networks, products, and potential interference issues, as well as other statements that are not historical facts, are forward-looking statements. The words “estimate,” “project,” “forecast,” “intend,” “expect,” “believe,” “target,” and similar expressions are intended to identify forward-looking statements. Forward-looking statements are estimates and projections reflecting management’s judgment based on currently available information and involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. With respect to these forward-looking statements, management of each of Sprint and LightSquared has made assumptions regarding, among other things, development and deployment of new technologies and networks; operating costs; efficiencies and cost savings of multi-mode technologies; customer and network usage; customer growth and retention; pricing; service, coverage and quality, including potential interference issues; and the timing of various events. Sprint Nextel and LightSquared believe these forward-looking statements are reasonable; however, you should not place undue reliance on forward-looking statements, which are based on current expectations and speak only as of the date of this release. Sprint Nextel and LightSquared are not obligated to publicly release any revisions to forward-looking statements to reflect events after the date of this release. Sprint Nextel provides a detailed discussion of risk factors in periodic SEC filings, including its annual report on Form 10-K for the year ended December 31, 2010 in Part I, Item 1A, “Risk Factors,” and in Part II, Item 1A “Risk Factors” of its quarterly report on Form 10-Q for the period ended March 30, 2011.

Photos/Multimedia Gallery Available: News | Business Wire



Contact(s):
Burson-Marsteller for LightSquared
Amy Rosenberg, 212-614-4558
amy.rosenberg@bm.com
or
Sprint Nextel
Scott Sloat, 240-855-0164
scott.sloat@sprint.com

So, it looks official, Sprint has finally realized that LTE is the future and WiMax is going to end up like the HD DVD, tossed aside for Blu-Ray or in this case LTE.

[SCrid2000]

Good, Sprint needed to do this quite a while ago - looks like they waited till the Evo was about a year old lol.

[eve6er69]

No they are still going to use the wimax freq. Look up project leapfrog. It is for next year and hopefully by then what sprint will have is a network that has 3 separate frequencies and devices that can switch between them on the fly and during a phone call.
They are looking ahead and soon to have a new technology that the big boys will want to copy.

Posted from my CrackBerry at wapforums.crackberry.com

[BergerKing]

Update:


SPRINT PREPS FOR LTE ANNOUNCEMENT, MAINTAINS UNLIMITED-PLAN COMMITMENT
9 hours ago By Craig Galbraith0 CommentsPosted in News, Sprint Nextel, 4G/LTE/WIMAX, Wireless, iPhone Print
Sprint will join AT&T and Verizon Wireless in offering a nationwide LTE network early in 2012, according to a new report.

The famous “people familiar with the situation" say equipment is being installed and the network is being tested in certain areas. It will go live with commercial service around March or April, according to CNET. No word yet how many cities will be involved in the launch.

Up until Verizon Wireless launched its 4G LTE network in 2010, Sprint was able to boast the fastest broadband speeds due to its partnership with Clearwire on a 4G WiMAX network. But now that AT&T also has moved to LTE, Sprint finds itself lagging behind and likely feels the pressure to keep up with its big sisters. The carrier previously said it would have a 4G announcement to make on Oct. 7, so this is likely it.

Sprint is widely expected to become Apple’s third U.S. partner for the iPhone when the computer giant announces the iPhone 5 next week. That should be another important piece to staying competitive in the wireless game.

Sprint also hopes its unlimited data plans will make it an attractive alternative to AT&T and Verizon Wireless. At GigaOm’s Mobilize conference this week, CTO Stephen Bye re-confirmed the carrier’s commitment to these types of plans. Verizon and AT&T recently capped their “unlimited" plans at 2GB. Sprint has been hitting the television airwaves hard with this message lately.

Sprint Preps for LTE Announcement

Posted from my CrackBerry at wapforums.crackberry.com

[eve6er69]

I sure hope they keep unlimited. Sounds solid right now but after the iphone drops I hope they don't back off and follow trend.

Posted from my CrackBerry at wapforums.crackberry.com

[lnichols]

It's too late to keep me. Plus that means that world phones would need to support so many different radios. Also would probably be a while before you see decent 4G coverage. I'm going to switch, and maybe when LTE is a little more universal switch back if Sprint is the value leader for Family plans. Not going to upgrade my 4 existing Blackberry devices to new ones with them and pay an extra $40 per month for the same radio technology and same Blackberry data frugality. And since they are canceling the premier programs their is another reason not to be loyal. I've had great service from Sprint in my 10 years with them, and deciding to leave isn't easy because of this, but they keep finding ways to increase my pricing without delivering any additional value.

[eve6er69]

I am in the same boat man. I have 3 berrys and I am not going to pay an extra $30 a month for the same speed since I have no 4G where I live or work.

Posted from my CrackBerry at wapforums.crackberry.com

[lnichols]

Originally Posted by eve6er69

I am in the same boat man. I have 3 berrys and I am not going to pay an extra $30 a month for the same speed since I have no 4G where I live or work.

Posted from my CrackBerry at wapforums.crackberry.com

Yeah I'd probably give them more time if not for that fee too and my Tour being needing desperately to be replacement. Not much reason to stay with them with number porting. If they get their "vision" deployed and become family plan friendly again I can come back. Just migrated the wife's family over to T-Mobile (let them be the guinea pigs I guess), will probably be moving my lines over around the 15th.