Sprint and LightSquared sign 20 billion dollar contract

Beijing time June 3 afternoon news, people familiar with the Thursday, the United States billionaire Philippe Falcohn (Philip Falcone), the emerging LTE operator LightSquared close to the U.S. third-largest mobile operator Sprint Nextel (hereinafter referred to as "sprint　　"To reach a 20 billion dollar cooperation agreement. According to people familiar with the matter, the agreement, which lasts 15 years, will enable Falcone to complete the LightSquared network faster, while also allowing sprint to share the cost of building the network. Sprint has pledged to invest $5 billion in the next 3-5 years to upgrade mobile networks so that they can use different spectrum on a single base station.　　Dan Hesse, CEO of Sprint, said in May this year that he had negotiated with Clearwire in the hope of using a Clearwire network on the sprint infrastructure (Dan Hess). Last year, LightSquared reached an agreement with the Federal Communications Commission (FCC) to provide services to up to 100 million U.S. users by the end of next year, extending the range of services to 260 million in 2016.　　Jeff Carlisle, executive vice president of LightSquared PR, said in a conference call in Wednesday that the company plans to launch commercial services early next year. People close to the situation said LightSquared would pay up to 2 billion dollars a year for the purchase and construction of network equipment at the beginning of the partnership. In the late stages of cooperation, the specific payments made each year will depend on the number of users and usage of the LightSquared network. The total value of the contract will depend on these payments.　　Two company spokesmen declined to comment. Jonathan Chaplin, a credit analyst at Jonathan Chaplin, said in a study May 24 that the deal would allow Sprint to use LightSquared Extra network resources to save $240 million a year.　　He said the deal gave Sprint a steady return of 1.2 billion dollars a year. LightSquared, headquartered in Virginia State Reston, has received a capital injection from Falcone's hedge fund, Harbinger. According to Chaplin, in addition to the existing 1 billion U.S. dollars, LightSquared also need to raise 3 billion of billions of dollars to achieve its network construction plan.　　Two people familiar with the matter said this week that the company was still negotiating with at&t to buy Internet resources from the latter. As of Thursday 4 o'clock in the afternoon, Sprint's share price was closed at $5.93 in regular trading, up 10 cents in the previous session, or 1.7%, the highest since October 2008.Value。 Sprint's share price has risen 40% since the year. (Yong-Hung)