Sprint Maintains Silence on LightSquared Deal

Sprint Corp. (NYSE: S) and LightSquared aren't saying if they have a network-sharing deal in place even as the fund backing the nascent operator appears eager to get word of the long-awaited accord out to investors.

Heavy Reading analyst Berge Ayvazian is at the Sprint Industry Analyst Conference being held Tuesday at the operator's Overland Park, Kan., headquarters. "Sprint CEO Dan Hesse made it clear that he would not be announcing a deal signed with LightSquared ... today," Ayvazian writes on the LR Mobile message board. (See LightSquared Reportedly Seals Sprint Deal .)

    Even though Philip Falcone disclosed this 15-year agreement in a letter to his investors, Dan [Hesse] was not ready to make this announcement without being able [to] detail Sprint’s plans for deploying LTE services using its own spectrum and the future of Clearwire 4G on the new Sprint Network Vision platform. Look for the Sprint announcement closer to when it reports its [second-quarter] earnings results.

Philip Falcone at the Harbinger Capital Partners LP hedge fund, of course, wants investors to know that they have picked a winning horse with LightSquared. The fund is rumored to have plunged $6 billion into the venture. (See Report: LightSquared Mulling IPO.) The letter, however, leaves Sprint and LightSquared in an interesting position. They have to remain silent on what appears to be one of the worst-kept secrets in the business world right now.

Sprint has said that it wants to keep to its timetable for 4G announcements. LightSquared, meanwhile, just has to keep stonewalling with the ol' "no comment" routine. (See LightSquared Offers GPS Olive Branch.) It could be a long, hot and frustrating summer for all concerned.

— Dan Jones, Site Editor, Light Reading Mobile

joset01 12/5/2012 | 5:01:22 PM
re: Sprint Maintains Silence on LightSquared Deal

Sprint typically reports Q2 28-29th July.

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