Sprint May Soon Cut Ties With LightSquared [telecom]

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Sprint May Soon Cut Ties With LightSquared

By GREG BENSINGER

NEW YORK--Sprint Nextel Corp. may cut ties with billionaire Philip Falcone's LightSquared Inc. as soon as mid-month as the wireless start-up has struggled to get regulatory approval for a nationwide fourth-generation mobile broadband network, according to people familiar with the situation.

Sprint may take advantage of a contract clause that would let it end its relationship with LightSquared as early as March 16, the people said. Sprint and LightSquared last year signed a 15-year accord to share network building and operations costs, an arrangement LightSquared said could save it $13 billion through the end of the decade.