Sprint & LightSquared Announce Partnership, Means 15 Years Of 4G LTE Sharing

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We sort of expected this one to come this morning, however that being said, its always nice to get the confirmation and details. Anyway, it looks like Sprint and LightSquared have officially announced their agreement. And a 15 year agreement at that.

According to the details we have seen thus far, this agreement “includes spectrum hosting and network services, 4G wholesale and 3G roaming.” In other words, it looks like Sprint and LightSquared will be sharing their respective networks with each other. It also means that LightSquared should have their 4G LTE network roll-out completed a full year (or more) ahead of the FCC mandate. According to the FCC, LightSquared would need to have that available for 260 million Americas by 2015.

Otherwise, some of the other important points of this agreement are as follows;

• A 3G nationwide roaming agreement with Sprint which enables LightSquared’s wholesale customers to offer combined 4G/3G data services as soon as LightSquared launches its first 4G markets in 2012.
• Sprint receives approximately $4.5 billion in 4G-LTE and satellite purchase credits from LightSquared providing Sprint with a cost-effective option for LTE services, if Sprint chooses to incorporate L-Band into their 4G offering.
• The 4G-LTE network will now be deployed first in major U.S. markets in 2H 2012 and early 2013 giving LightSquared’s wholesale customers significant selling opportunities in the largest markets for wireless broadband services.
• LightSquared is also executing plans to make LTE services available in underserved rural markets through announced deals with Open Range, Cellular South and SI Wireless.

Bottom line here, while we are going to have to wait until this all settles in a bit before making a final decision, we have to say that at the moment it seems to be a win-win for both Sprint and LightSquared. Then again, we have seen deals that look good up front act a bit crazy in the long run so only time will tell.