The agreement allows LightSquared to complete its 4G-LTE deployment more than a year ahead of the U.S. Federal Communication Commission’s (FCC) mandate to cover 260 million Americans by 2015 and to generate more than $13 billion of network capital and operating expense savings in the next eight years.

   The deal also includes a 3G nationwide roaming agreement with Sprint, which would allow LightSquared wholesalers to offer combined 4G/3G data services after the LTE network is deployed in major U.S. markets between the second half of 2012 and early 2013. LightSquared will issue $4.5 billion in 4G-LTE and satellite purchase credits to Sprint with the option for future LTE credits.

    During a Sprint financial conference call, Sprint Network Operations President Steve Elfman said the agreement is subject to LightSquared obtaining resolution and FCC approval involving terrestrial use of the L-band spectrum, as the company battles with the FCC regarding GPS potential interference issues caused by its satellite-based network.

    LightSquared said that establishing the right to roam onto Sprint’s nationwide 3G network gives the company immediate access to virtually ubiquitous coverage. Consulting firm PRTM Partner and Analyst Dan Hays called the agreement a “coup” for LightSquared and Sprint, which presents significant benefits for both companies. “For Sprint, this will defray a significant portion of its planned capital investment and deliver increased cash flow while providing an opportunity to tap into LightSquared’s competitive 4G technology. For LightSquared, this deal will dramatically reduce the cost and time required to deploy its nationwide, mobile broadband network to hundreds of millions of Americans,” Hays said in a statement to Satellite TODAY Insider.

     The deal also brings benefits to MSS operator Inmarsat, which signed an agreement in June to help alleviate its GPS interference problems by accelerating its schedule for LightSquared to begin using its L-band block frequencies. Inmarsat’s stocks rose more than 3 percent immediately following the Sprint announcement.

Inmarsat signed its initial agreement with LightSquared in August 2010, which provided the MSS operator with $121.2 million in additional revenue.