Atlanta, GA, June 21, 2011 — In a normal environment this deal between Sprint and LightSquared would make sense. After all Sprint is looking for new opportunities and LightSquared is a start-up looking for brand name support.
However this is not a normal environment for either Sprint or LightSquared.
Lightsquared has a great idea and if they can bring it to market it may indeed make a difference.
Sprint is under pressure because of the AT&T T-Mobile deal.
We don’t know whether Lightsquared will fix what doesn’t work and become important. We also don’t know what will happen to Sprint if AT&T and T-Mobile do merge.
This partnership seems misguided at best. Like the blind leading the hobbled. The timing is not right. It just makes no sense right now.
Hopefully everything will work out for both companies, but at this point there are so many questions and not enough answers that this kind of deal just stands out as something that could have and should have waited.
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Jeff KAGAN| TECH ANALYST
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