Simplexity, best known for providing the infrastructure necessary to enable virtual operators has announced that it has reached an agreement with Sprint to resell the entire line of services with the goal of serving as the back end for new virtual operators wishing to launch branded services using Sprint’s network. The multi-year agreement spans Sprint’s complete line of services and operates at the wholesale level, meaning that any future MVNOs would have to go through Simplexity to build the infrastructure necessary to launch a new virtual operator.
The announcement of the new agreement follows last week’s launch of Ting from the company behind the Tucows portal and the January announcement of a similar agreement with Clearwire in January. Simplexity also has such an agreement in place with beleaguered network LightSquared, but the likelihood of that agreement becoming viable is slipping by the day as it fights to gain FCC approval.
LightSquared is currently working to maintain agreements with Sprint in relation to its LTE network and fighting potential insolvency, as the parent company in Harbinger Capital Partners sustained a 47% loss stemming from the writedown of LightSquared assets for the fourth quarter of last year since the assets are not being actively used, pending final approval from federal regulators following the results of interference testing that have shown that LightSquared’s satellite based network causes problems with navigation systems.
With LightSquared coming up against its last deadline from Sprint before the termination of its LTE agreement, it remains to be seen whether the entire venture can be saved at this point, as LightSquared makes up the majority investment vehicle for Falcone and Harbinger Capital Partners with a 62% stake.