We reported last week that it looked like Sprint might finally be dumping LightSquared once and for all, and that's just what happened earlier today. LightSquared simply can't fix its GPS problems, and Sprint is tired of sitting around and waiting. So Sprint's returning the $65 million that it got from LightSquared when they originally inked this failed deal, although – according to Sprint – they might still try to be friends:
Sprint has been and continues to be supportive of LightSquared’s business plans and appreciates the company’s efforts to find a resolution to the interference issues impacting its ability to offer service on the 1.6 GHz spectrum. However, due to these unresolved issues, and subject to the provisions of the agreement, Sprint has elected to exercise its right to terminate the agreement announced last summer. We remain open to considering future spectrum hosting agreements with LightSquared, should they resolve these interference issues, as well as other interested spectrum holders.
Sprint went on to reiterate that Network Vision (its network modernization plan, including adding 3G capacity and 4G LTE coverage) is still right on schedule; it's just going to be accomplishing this without the help of LightSquared.
[Sprint]
