In a deal with multifaceted implications for the cable industry, LightSquared reportedly has sent letters to its shareholders that it will "jointly develop, deploy and operate" its wholesale 4G network with Sprint (NYSE: S).
On the surface, the arrangement means that LightSquared has lined up not only a customer but a partner for its wholesale hybrid network--which also has a controversial satellite element. Beneath the surface, it could provide an interesting scenario for cable operators who are either working directly with Sprint, such as Cox, a Sprint MVNO, or who, like Comcast (Nasdaq: CMCSA), Time Warner Cable (NYSE: TWC) and Bright House Networks, have bought into Sprint's majority-owned Clearwire (Nasdaq: CLWR) WiMAX 4G venture.
On the other hand, this can't necessarily be considered good news for Clearwire, which was counting on Sprint to be a major customer when and if it moved from WiMAX to LTE. For cable operators, as long as they don't mind continuing to deal with Sprint, the deal is a plus because it provides a spot in what promises to be an LTE price war between Clearwire and LightSquared.
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- The Register has this story
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