Home » Competition »LightSquared »Public Policy & Gov't »Video »Wireless Broadband » Currently Reading:

LightSquared Sunk by FCC; Shared Spectrum Interference to GPS Devices Cited

Phillip Dampier February 15, 2012 Competition, LightSquared, Public Policy & Gov't, Video, Wireless Broadband No Comments

A billionaire who invested enormous sums to purchase airwaves for a new national wireless broadband network learned Tuesday ruled he cannot use them to launch LightSquared.

The Federal Communications Commission said yesterday Philip Falcone’s vision for competitive wireless service cannot go forward on the frequencies he acquired because tests show they create significant interference to other nearby spectrum users, especially GPS.

Falcone’s hedge fund poured nearly $3 billion into LightSquared, which the company still claims would not create significant problems for GPS users including aircraft, cars, and ships.

Falcone

But when tests were conducted in early 2011, significant interference problems were reported, some that could jeopardize the safety of American air travel.  The FCC decided it preferred to be safe instead of sorry.

The announcement by the FCC calls into question the future of the company and the value of its airwave assets, which are now likely worth a fraction of the price paid.

The company’s agreements with at least 30 wholesale customers are also at risk, and one of its largest partners, Sprint-Nextel, has spent the last few months distancing itself from the project, anticipating the decision the FCC announced yesterday.

The rejection has upset the FCC’s plans to increase wireless competition for AT&T and Verizon, which dominate American wireless.  The agency hoped the spectrum LightSquared obtained would open the doors to a new national player, but that appears unlikely for now.

LightSquared executives said in October they would sue the FCC in court if the agency blocked their network from operating.

The only new player on the horizon may be Dish Network, which earlier acquired wireless spectrum from two bankrupt companies, and now seeks to use them as mobile phone spectrum.  Separately, Clearwire is working with Sprint to construct a new national 4G network, while still operating Clear’s existing WiMAX 4G service.

[flv]http://www.phillipdampier.com/video/CNBC LightSquared Faces Prohibition Following Interference Report 2-14-12.flv[/flv]

CNBC discusses LightSquared’s new troubles and where the company can go from here.  (3 minutes)

Search This Site:

Contributions:

Recent Comments:

  • Rossa Williams: I moved over and they qualify for early buyout off under $500 I've called twice I've got no respond they say they was going to send me something in th...
  • snake: I had the original $20 a month service for years. Then last week they shutdown my internet, before my bill was due. I paid the amount. Service was sti...
  • JayS: Are the streaming services that carry local channels (Sling, DirectTv Now, YouTubeTv....) paying the same/similar remuneration to the local stations a...
  • Nicole: Would be fine if spectrum actually worked all the time. It's the worst....
  • jeff k: So glad I looked at reviews FIRST! I was 5 minutes away from buying the 3 for $73.75 deal. WOW, I started the day calling COX to find out how much it ...
  • Adam: Figured I’d take a deeper look into my bill. Each month it kept slowly creeping up! My bill increased $20 more since last year! I’m stuck with their m...
  • Divine Retribution: I've had Fios since 2006 when it was originally owned by Verizon & much better then mind you & I can tell you their internet speed isn't even ...
  • Mark: I ordered LiveWave yesterday and used PayPal/AMEX. I read through theses comments and decided to cancel my order. I called the number listed on my ord...
  • fordoughnow: My Internet started at $40 less than 2 years ago with Spectrum. $68 now with all the taxes and service BS. I haven't had a raise in that time so I'm n...
  • Bob: Altice is garbage and they can't deliver even close to the internet speeds they claim. They should be paying me to use their sh*t altice and their gar...
  • Suze: I so agree. They couldn’t make Prisim a win so they sold out to DT. Losers. Worst customer service ever....
  • Sandra neil: God I dealt with them for 5 yrs, hideous customer service. They’re now moving all they’re customers to Direct Tv. I have nothing other then northern e...

Your Account: