LightSquared seeks approval for new plan that would eliminate interference from its network
LightSquared, which is owned by hedge fund manager Philip Falcone, filed for bankruptcy in May and will ask a judge to expand the time it has to make an exclusive reorganization filing without a rival plan being presented, until next Summer. LightSquared wants the FCC to change its license application so that it can use 5MHz of spectrum that doesn't interfere with GPS technology. It also wants the right to use another 5MHz that it would share with federal government workers. A rule-making petition asks LightSquared not to use its upper 10MHz of spectrum which was guilty of causing the problem with GPS receivers. LightSquared would still like the FCC to approve the use of that spectrum, but has agreed to wait for revised rules on terrestrial use of those frequencies.
hundreds of millions of dollars on the company and are being sued by securities regulators for a number of alleged violations including misappropriation of client money, bond price manipulation and favoritism of certain clients. Falcone says he is not guilty of the charges.
Last year, LightSquared received a conditional approval from the FCC to start up its network. The agency had to change its decision after the National Telecommunications and Information Administration concluded that its network interfered with GPS signals. The big disaster was the loss of a huge contract with Sprint.
1. QWIKSTRIKE (Posts: 923; Member since: 09 Mar 2010)
It seems that some people in congress felt Falcone was right in the fact that some on the FCC had conflicts of interest to let his plan go through. Now he will be given a chance to reorganize and offer what truly is needed by many and feared by other carriers it appears an FCC member had investments with!
Let's see if Sprint can now gain an edge where they are behind in 4g roll out which was suppose to be lead by Falcone!
2. Droid_X_Doug (Posts: 5977; Member since: 22 Dec 2010)
Meh. If there is no interference with GPS signals from the revised proposal, Clearwire gets to proceed. Otherwise, it will still be no go. Unlimited lobbying expenditures will not change that simple reality. The Feds have invested too much in their GPS toys.
3. lsutigers (Posts: 789; Member since: 08 Mar 2009)
Lightsquared's success is much bigger than most people think. The Lightsquared plan was meant to be the first of it's kind to bring a nationwide, high-speed 4G LTE network to the masses and decrease cost through economies of scale. This is huge, not just for Sprint because they have their own LTE network but for the US as a whole to lead in the advancement of wireless telecommunications. The scale and depth of this project has been recognized by US senate / house representatives and other gov't officials and it looks like the few bad apples @ the FCC and Verizon (as many have speculated) have finally been busted with conflict of interest allegations (many of the GPS interference issues were unfounded). It looks like the Lightsquared project might be finally moving forward, which is for the common good of the people.
4. QWIKSTRIKE (Posts: 923; Member since: 09 Mar 2010)
Just too bad that Light Squared stock took a hit over the alleged conflict, which was more of a financial conflict for some ones investment.