Sprint ends spectrum hosting deal with LightSquared Times wire services Wireless carrier Sprint Nextel Corp. ended its spectrum hosting agreement with start-up LightSquared, whose network looks doomed because regulators say it interferes with GPS navigation devices. Sprint is returning $65 million in prepayments to LightSquared. The deal between the companies had called for Sprint to collaborate with LightSquared on its LTE, or long-term evolution, network. Sprint said Friday that LightSquared had thus far been unable to find a way to resolve interference issues. LightSquared said in a statement that Sprint's decision to end the agreement was not unexpected, given regulators' actions. The ended deal won't hurt customers, Sprint said. The country's No. 3 wireless carrier is also upgrading its own network to use LTE technology, and said it would launch its 4G LTE network in the middle of 2012. Analysts have said that absorbing the cost of upgrading its data network over the next few years will be a big challenge for Sprint. LightSquared had originally agreed to pay Overland Park, Kan.-based Sprint $9 billion and issue an additional $4.5 billion in service credits in exchange for building and operating the network. The deal hinged on approval from the Federal Communications Commission to convert airwaves originally designated for satellite service to communications spectrum for land-based, or terrestrial, radio towers. The FCC said last month that it would block LightSquared's planned network because of potential disruptions to global positioning systems. The company said after the decision that it remains committed to finding a solution. Withdrawing U.S. approvals obtained over the last seven years would represent an "astounding, unsupported, and unprecedented reversal of commission policy," LightSquared said in a filing Friday. It said the government relied on biased tests and shouldn't revoke permits. Shares of Sprint rose 3.2% to $2.89.