Nokia Siemens Network said it will still build a core network for telecom start-up LightSquared, despite speculation their deal will be called off after a new pact between LightSquared and U.S. carrier Sprint Nextel (S.N).
A spokesman for Nokia Siemens said the company would deliver an independent core network for LightSquared, but declined to say how much of the original contract would remain.
Last July the company unveiled an eight-year contract worth more than $7 billion — covering core network, radio network and services — which analysts said might be the largest order seen in the mobile telecoms gear industry.
Nokia Siemens was expected to lose most of that deal due to a new pact between LightSquared, which is backed by Philip Falcone’s Harbinger Capital hedge fund, and Sprint. The U.S. firms confirmed the $9 billion deal on Thursday.
Sprint also has a major outsourcing deal with NSN’s bigger rival Ericsson (ERICb.ST), which was valued at $5 billion when it was signed in 2009.
(Reporting by Tarmo Virki; Editing by David Hulmes)
