LightsquaredNetwork
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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.
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 signs deal with AirTouch, creates its first MVNO
LightSquared added another name to its list of allies yesterday, with a wholesale agreement allowing AirTouch products to dabble in the world of wireless. The phone manufacturer, which makes telecom devices that work with voice, data and video, looks set to become the first newly created MVNO to use LightSquared's 4G goodness. Of course, all this is assuming that the nascent network actually gets off the ground. But now that it's supposedly solved that pesky GPS interference problem, what could possibly stop it?
LightSquared donates phones to North American tribes, keeps the rural connectivity flame a burnin'
It looks like LightSquared's crush on rural America is still ongoing, folks. The firm announced today it'll donate 2,000 satellite phones to the Indian Health Service and other tribal organizations, allowing them to make calls in areas that terrestrial networks don't cover. Sadly, no details on exactly what gear it's deploying, but according to Computerworld the devices are voice-only, meaning IHS employees better get pretty damn crafty if they want to surf Engadget whilst on the job -- can you say dial-up tether? Either way, with connectivity headed to facilities in Oregon, Washington, Idaho and Arizona, can the firm's wholesale debut be that far off? We'll have to see, but in the meantime, indulge in the official PR beyond the break.
LightSquared creates rural America initiative, promises to be more help than hindrance
With GPS interference issues now resolved, LightSquared's going back to the farm to reassure rural America it means no harm. The wholesale-only 4G LTE service that already signed up a plethora of partners is turning to Sen. Byron Dorgan and Reps. George Nethercutt and Charlie Stenholm to oversee its newly-created Empower Rural America Initiative. The plan calls for oversight of the service's bucolic deployment, promising its filtering tech will keep GPS-dependent precision agriculture on-point and pesticides away from your country home. Also under the proposed guidelines are plans to assist emergency first responders with network access in the event existing communication systems get knocked out. It's a comforting pat on the rustic back that should shore up "broadband adoption gap" issues currently plaguing underserved areas. But while it may look like the farmer and the technologist can be friends, we have a sneaking suspicion there are more self-serving motivations at play here. Hit the break for LightSquared's pastorally empowering PR.
