LightSquared hasn't exactly been having much luck in its attempt to build a new 4G LTE network, and today a new report has suggested that some more bad news for the company may be on the way. According to sources speaking to Bloomberg, Sprint is planning to give its network-sharing deal with LightSquared the axe as soon as next week.

The deal was announced last year, and Sprint had given LightSquared until the end of 2011 to gain the FCC's green light for work on its new LTE network to begin. Sprint recently extended that deadline though the middle of March, but Bloomberg's sources say that Sprint doesn't plan to push the deadline back any further. Sprint will have to return as much as $74 million to LightSquared if it does end up killing the deal.

Last month the FCC said that it would reject LightSquared's application to build an LTE network over concerns that it would cause GPS interference, with one NTIA report about LightSquared's plans claiming that there's "no practical way to mitigate the potential interference" right now. LightSquared has said that it disagrees with the NTIA's report and that it's still committed to getting a thumbs up from the FCC for its network, but things definitely aren't looking good for the company, especially after today's news that Sprint may soon end its deal with LightSquared. It'll be interesting to see how LightSquared responds to Sprint's decision to axe the agreement if it actually does go down, so be sure to stay tuned.

Via Phone Scoop, Bloomberg