Sprint Nextel Corp. has sued ICO Global Communications Ltd. and TerreStar Networks Inc. to force the mobile satellite service licensees to pay the No. 3 mobile-phone operator for relocation costs associated with a Federal Communications Commission rebanding plan to eliminate interference to 800 MHz public-safety communications.

“Under the FCC’s orders, defendants are required to reimburse Sprint on a pro rata basis for Sprint’s costs in clearing these channels for the MSS entrant’s use,” stated Sprint Nextel in the 20-page lawsuit filed in federal court in Virginia. “Defendants, however, have refused to reimburse Sprint for the amounts that are due and owing, and have further indicated they have no intention of complying with the FCC’s orders regarding reimbursements, or otherwise timely and fully compensating Sprint for the costs it has incurred on their behalf.”

Sprint Nextel told the court it will cost about $100 million to relocate broadcast auxiliary service incumbents around the country from the 1990-2025 MHz band to the new BAS channel block. As such, the carrier said ICO and TerreStar each owes it at least $40 million so far.

“Sprint knows it’s wrong,” said Christopher Doherty, an ICO spokesperson. “They have failed to persuade the FCC to change the applicable rules, and now they have gone to federal court instead of the FCC. ICO is in compliance with all FCC orders and will aggressively defend itself against this frivolous action.”

TerreStar had a similar reaction.

“TerreStar believes that the suit is wrong on both the facts and law, and plans to vigorously defend itself,” the company stated.

The FCC recently gave Sprint Nextel and public safety agencies additional time to meet 800 MHz rebanding requirements.

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