Sprint Nextel planning to terminate relationship with Lightsquared

Sprint Nextel planning to terminate relationship with LightsquaredSprint Nextel might be planning to terminate its relationship with Lightsquared and would return $65 million in prepayments, according to a new report.

A report in the Wall Street Journal claimed that the Sprint Nextel would exit from the 15-year contract with the broadband initiative on Friday. The development would leave Lightsquared without any major player in the industry to support its plan to construct a national wireless broadband network using satellite spectrum. Both the Sprint Nextel and Lightsquared did not comment on the matter.

It is another set back for the Reston, Va., company after the US Federal Communications Commission (FCC) said that it will not give its approval to a plan to build a national 4G-LTE network by LightSquared as the network will interfere with the GPS signals in the country.

LightSquared has been fighting for its right to build the network in the country. The announcement by FCC came after the National Telecommunications and Information Administration (NTIA) warned that LightSquared's proposed network would interfere with the GPS signals and there are not ways available to lessen its affect on the GPS systems.