RESTON, Va. -- LightSquared was dealt another blow Friday, as Sprint said it would officially end its deal with billionaire Phil Falcone's wireless start-up, which has been unable to launch its 4G wireless network over interference concerns.
"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," Sprint said in a statement on Friday. "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."
Sprint said it remains open to a new deal when and if LightSquared resolves the interference issues.
As part of ending the deal, Sprint returned $65 million in prepayments that LightSquared had made to cover Sprint's future costs.
Earlier this week, LightSquared hired a high-powered legal team to help it fight a potential death blow from regulators who say the company cannot overcome potential interference issues with GPS devices.
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Sprint, LightSquared, interference issues, RESTON, Va., Phil Falcone