mental
11-08-2011, 12:08 AM
Sprint had claimed it was owed $104 million in bandwidth fees.
By Joseph Checkler, Dow Jones Newswires
Monday 07 November 2011
DN Corp. is a giant step closer to owning TerreStar Networks Inc. and DBSD North America Inc., after settling a long legal fight with Sprint Nextel Corp. over a satellite-licensing agreement.
The settlement of the claims clears a key hurdle for D*sh, which bought the assets of TerreStar and DBSD in separate bankruptcy-court auctions this summer but still needs final regulatory approval.
Sprint had said it was owed $104 million by both TerreStar and DBSD for bandwidth fees, but new owner D*sh said Friday that the settlement ends the litigation over both of those claims. Terms of the deal weren't disclosed, but Sprint withdrew its petitions to deny D*sh the right to the spectrum it wants to use.
"We are pleased that D*sh and Sprint have been able to resolve all outstanding issues," D*sh said in a statement.
Sprint spokesman John Taylor told Dow Jones Newswires, "Sprint is pleased that the companies were able to resolve" the issues.
D*sh, which is controlled by satellite mogul Charles Ergen, bought the assets of TerreStar and DBSD this past summer in separate auctions one week apart.
The $1.38 billion purchase of TerreStar, which is trying to build the first satellite smartphone, paid creditors much more than a prior reorganization proposal. The $1.4 billion DBSD deal valued the company more than two times higher than a prior plan and paid that company's creditors in full.
Still, in each case, the Sprint claims loomed. As it pressed its case that DBSD and TerreStar owed it money, Sprint sought to deny D*sh's petition to use spectrum owned by TerreStar and DBSD to build a satellite mobile broadband network.
D*sh, which must still wait for final approval from the Federal Communications Commission, has received support from several computer industry groups to use the spectrum
By Joseph Checkler, Dow Jones Newswires
Monday 07 November 2011
DN Corp. is a giant step closer to owning TerreStar Networks Inc. and DBSD North America Inc., after settling a long legal fight with Sprint Nextel Corp. over a satellite-licensing agreement.
The settlement of the claims clears a key hurdle for D*sh, which bought the assets of TerreStar and DBSD in separate bankruptcy-court auctions this summer but still needs final regulatory approval.
Sprint had said it was owed $104 million by both TerreStar and DBSD for bandwidth fees, but new owner D*sh said Friday that the settlement ends the litigation over both of those claims. Terms of the deal weren't disclosed, but Sprint withdrew its petitions to deny D*sh the right to the spectrum it wants to use.
"We are pleased that D*sh and Sprint have been able to resolve all outstanding issues," D*sh said in a statement.
Sprint spokesman John Taylor told Dow Jones Newswires, "Sprint is pleased that the companies were able to resolve" the issues.
D*sh, which is controlled by satellite mogul Charles Ergen, bought the assets of TerreStar and DBSD this past summer in separate auctions one week apart.
The $1.38 billion purchase of TerreStar, which is trying to build the first satellite smartphone, paid creditors much more than a prior reorganization proposal. The $1.4 billion DBSD deal valued the company more than two times higher than a prior plan and paid that company's creditors in full.
Still, in each case, the Sprint claims loomed. As it pressed its case that DBSD and TerreStar owed it money, Sprint sought to deny D*sh's petition to use spectrum owned by TerreStar and DBSD to build a satellite mobile broadband network.
D*sh, which must still wait for final approval from the Federal Communications Commission, has received support from several computer industry groups to use the spectrum