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LightSquared's CEO quits, company not ready to pull the plug yet

LightSquared's CEO quits, company not ready to pull the plug yet
After LightSquared  failed to make a payment on a $56 million loan, and laid off 45% of its work force, its CEO has decided to also walk out the door. CEO Sanjiv Ahuja has left the wholesale mobile pipeline company on the verge of totally disbanding. A contract with Sprint is weeks away form being ripped up by the carrier and there seems to be no easy solution to prevent the company's system from bleeding over onto neighboring GPS systems.

LightSquared has confirmed that it is seeking a replacement for Ahuja and in the meantime, Chief Network Officer Doug Smith and Chief Financial Officer Marc Montagner will serve as interim Co-chief operating officers. Phili Falcone, the Hedge Fund Manager whose Harbinger Capital Partners has 40% of its assets in danger because of its placement with LightSquared, praised Ahuja for his work. Falcone wrote, "As the company takes the next step forward, we continue to be excited about the prospects and look forward to working with new leadership to accomplish our goal of building and operating an innovative, competitive wireless network."

That next step forward will probably be without Sprint. The nation's third largest carrier has given LightSquared until the middle of March to get government regulators to sign off on the paperwork necessary for LightSquared's system to be up and running. Unless there is a last second miracle, that is not likely to happen. Falcone though, talks like there is still plenty of time for the company. "We are, furthermore, committed to working with the appropriate entities to find a solution to the recent regulatory issues. We, of course, agree that it is critical to ensure that national security, aviation and the GPS communities are protected. I am confident that working together, we can solve this problem and bring the American consumer the lower priced 4G wireless alternative they need and deserve."

source: LightSquared

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posted on 29 Feb 2012, 01:49 1

1. Sniggly (Posts: 6695; Member since: 05 Dec 2009)


Sprint just can't seem to pick a tower partner that doesn't go bankrupt. Misery loves company, maybe?

posted on 29 Feb 2012, 12:55

5. KParks23 (Posts: 443; Member since: 13 Oct 2010)


Well it was a stupid decision going with wimax anyway they should of went lte in the first place and I said that a long time ago when I saw vzw was goin lte they screwed themself making dumb business moves sprint needs to take the same EXACT steps vzw makes if they want to stay in business cuz let's be honest sprint is pretty dependant on vzw with towers and other things so to go lightsquared when vzw was goin lte not to smart at all... I think sprint is a great company and has great service for low prices so I hope they get there crap straight

posted on 29 Feb 2012, 02:27 2

2. hornetmx (Posts: 71; Member since: 12 Mar 2010)


No kidding there. However it's a good sign for Sprint users since Sprint will be forced to keep prices down. Funny how people nowadays brag about how sprint is cheap and "unlimited" but they forget Sprint was basically forced to lower their prices after they started bleeding customers by the millions in the early 2000s. People think Sprint is a really nice, great company because they keep their prices low. They dont realize Sprint wishes they could charge as much as AT&T or VZW but they wouldnt have any customers if they did. I dunno how long Sprint will stay in business and that's sad because we are talking american jobs, but to those loyal Sprint users.. enjoy it while it lasts. They cannot compete at these prices and they keep running out of arguments to raise them with poor decisions (Wimax, Iphone and Lightsquare being an example of the last few).

posted on 29 Feb 2012, 08:45

3. droidguy2323 (Posts: 55; Member since: 23 Sep 2011)


I SEE SPRINT BEING IN THE SAME POSITION R.I.M IS IN COME 2014.

posted on 29 Feb 2012, 11:52 1

4. downphoenix (Posts: 2266; Member since: 19 Jun 2010)


AT&T and Verizon's lobbying work is done here folks. They were unsuccessful in swallowing T-Mobile whole because the justice department got in the way, so they hit up the politicians instead at Capital Hill to hit Sprint hard since they fought their agenda with T-Mobile. And Sprint will be hit hard. This will severely weaken their plans to get LTE services up and running.

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