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LightSquared pitches new plans to FCC in attempt to end GPS interference hex
If you thought filing for Chapter 11 bankruptcy was the final chapter in LightSquared's wireless network saga, you'd be wrong. Hedge-fund manager Philip Falcone is back at the FCC's doorstep with yet another proposal, which he hopes might snatch the maligned network from the jaws of GPS interference-related troubles. Two filings placed with the commission apparently outline plans to use its broadband network in a way that it believes won't interfere with GPS signals, along with the 5MHz of spectrum that are known not to cause any issues. Along with the proposed changes, LightSquared is reportedly set to ask for more time to have exclusive rights to propose a reorganization plan. If granted, this could finally mean some progress for the beleaguered project, but with investors worried that money being spent on this could be better-placed back in their pockets, Falcone will have everything crossed, while the FCC deliberates the situation.
LightSquared founder Philip Falcone to step down 'eventually', attempts to dodge the bankruptcy bullet
In an effort keep the troubled LightSquared from the brink of defaulting on its debt, its founder will step down from the company. While it doesn't look immediate, (people "familiar with the negotiations" are using the word "eventually") it's Philip Falcone's latest attempt to extend a debt-term violation that expires this morning. According to the same sources, if the initial extension is okayed, Falcone and LightSquared's lenders are aiming for a greater period of around 18 months to repay $1.6 billion in loans and pass the FCC's requirements for its network. The company's board is still deliberating on whether to accept the deal, which would stop the company filing for bankruptcy protection. Unfortunately, it looks like those new 4G network dreams just got hazier.
Inmarsat hands LightSquared a lifeline, hopes to get that $56 million back later
Remember LightSquared? Of course you do, it was the noble yet doomed attempt to build a nationwide 4G LTE network. Days before Sprint dumped it, billionaire Philip Falcone's enterprise defaulted on a $56 million spectrum allocation payment to British satellite operator Inmarsat. Now LightSquared's biggest creditor has offered a stay of execution to give the company time to overcome the regulatory hurdles (we'd suggest praying Julius Genachowski gets another job elsewhere) and get the project back on track. Cynics might suggest it's only been given the breathing room because it's not worth being pushed into Chapter 7 bankruptcy, to which we say shame on you, you naughty cynics.
Sprint kicks LightSquared to the curb as it contests FCC ruling
Sometimes when you start heading downhill, it can be hard to stop. Take LightSquared for instance -- not only were its LTE plans repeatedly contested and eventually shot down, but now Sprint, its long time partner, will indeed be cutting ties with the wireless start-up. According to the Wall Street Journal, the move will officially be announced on Friday, leaving LightSquared alone with its dreams. A representative from the start-up says its filing a 150-page defense of its network on the same day, hoping to refute the Feds' claims that its network interferes with GPS signals. The outfit made no comment on Sprint's plans, but mentioned that it has enough funds to operate on its own for several quarters. We'll let you know when Sprint officially drops the ball.
LightSquared says obsolete devices used in 'rigged' testing of its LTE network
LightSquared's encountered many bumps on the road to winning clearance for its LTE network, but it's not ready to throw in the towel just yet. During a conference call today, Jeff Carlisle (Executive Vice President for Regulatory Affairs), Geoff Stearn (Vice President of Spectrum Development) and Ed Thomas (Former FCC Chief Engineer, now a LightSquared consultant) refuted the government's claims that the network interferes with GPS receivers, lambasting the use of "obsolete" devices and other tests that don't "reflect reality." The LightSquared executives went as far as calling the entire process "rigged" and "shrouded in secrecy." In their opinion, the testing was "set up to be a failure," thanks in part to the involvement of GPS manufacturers. Moreover, when questioned about what the next step would be, the company stated that all it'd like are "valid scientific results," the use of non-obsolote devices and a "fair process with proper testing." Needless to say, we can expect the drama to continue over the coming months -- after all, LightSquared is claiming it's got enough money to keep the battle going for at least a few quarters yet.
LightSquared's LTE hopes dashed by federal agency report
When it was first mooted that LightSquared's LTE technology might interfere with GPS equipment, the firm was quick to deny it. Since then, the company has tried to mitigate the issue, but the nine agencies making up the National Space-Based Positioning, Navigation and Timing Executive Committee (PNT ExComm) all agreed that the problems are real and any attempts at mitigation are futile. This comes only days after Sprint reneged on a resource sharing deal, issuing a further blow to the company's plans for a terrestrial network. LightSquared's reaction is naturally not a happy one, claiming that the testing process is not only flawed, but that the agencies have a bias in favor of the GPS industry. By our reasoning, this only leaves the stage of depression before final acceptance of the grief-ridden situation.
