Tech Analyst Jeff Kagan: Comment on Sprint Nextel LightSquared Agreement

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Atlanta, GA, July 28, 2011 — Why did Sprint Nextel risk so much jumping into bed with Lightsquared before they really get to know each other? This is an important questions that no one has answered yet.

This not knowing confuses the marketplace, and that means customers, workers, investors, partners, everyone.

Is this a good deal? Does this make sense? Perhaps it does IF Lightsquared can fix the problem that their technology interferes with another industry.

The GPS and navigation industry continues to send me emails discussing the serious problem Lightsquared has on their industry on a regular basis and they have not eased up.

Lightsquared says they can fix the problem. Once they do they can compete and potentially become a serious player.

But let’s not put the cart ahead of the horse here.

I hope they can. I like Sprint Nextel and I like the dream of what Lightsquared could become some day.

However this real problem has to be fixed first.

Listening to this Lightsquared battle can give you a split personality.

On one hand it’s the story about a new company solving a growing problem.

On the other hand it’s also the story of how this new company seriously interferes with another industry and no solution is in site.

Lightsquared continues to talk and to build as if there is no problem.

The GPS and navigation industry continues to raise the red flag and points to real problems.

What is the truth? This is the problem the marketplace has in evaluating this deal.

Jeff Kagan

Tech Analyst