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Dish withdraws $2.2 billion bid for Lightsquare's wireless spectrum
You might want to hold off on thinking of a portmanteau for Dish and Lightsquared. The satellite TV company has officially withdrawn its $2.2 billion bid for the ailing firm's wireless spectrum, despite actively pursuing the acquisition last year. In fact, Lightsquared even filed a case against Dish chairman Charles Ergen for allegedly purchasing $1 billion of its debts (illegally, that is) in an effort to take over. While this is the latest in Dish's string of failed acquisition attempts -- remember Sprint and Clearwire last year? -- it's likely not the end of the company's wireless dreams. Lightsquared's lawyers believe the move might just be a ploy to force the company to sell for a lower offer, so the saga might continue. Dish is also testing a fledgling LTE broadband service in Virginia and Texas, with hopes of making it available to the rest of rural America in the future. Besides, 2014 has just begun -- Dish has a whole year ahead of it to set its sights on yet another company to buy.
Bloomberg: Dish offers $2 billion for LightSquared's wireless spectrum
The last few years have been a tumultuous time for LightSquared, with the company's LTE plans facing one hurdle after another that eventually led to a bankruptcy filing. It looks like at least one company is now looking to buy its most valuable asset, though, with Bloomberg reporting that Dish Network Chairman Charlie Ergen has put a $2 billion offer on the table for the company's wireless spectrum. That's yet to be confirmed by either party, and Bloomberg reports that the offer is a so-called stalking horse bid, which could still let others put in a higher offer of their own. As Bloomberg also notes, this all comes at the same time that Dish is looking to buy Sprint for over $25 billion, both of which would need regulatory approval before going through.
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.
Sprint's iPhone gamble isn't paying off as 2012 Q2 figures reveal $629 million operating loss
Sprint's second quarter figures have arrived, showing that the company's billion-dollar gamble on the iPhone isn't working right now. While it sold 1.5 million Apple-branded handsets in the three month period (40 percent to new and postpaid customers), it recorded an operating loss of $629 million and a colossal net loss of $1.4 billion -- compared to an operating loss of $255 million and a net loss of $863 million in the first quarter. Operating revenues of $8.8 billion improved on those in the first quarter by a single percent -- mostly due to higher service fees from its wireless offerings. It's also grown its cash reserves, up from $128 million last quarter to $267 million today, and can point to 442,000 postpaid and 141,000 new prepaid subscribers pushing the company's customer base up to 56 million nationwide -- mentioning that 60 percent of former Nextel users chose to remain with Sprint during the enforced change. The figures reveal that Sprint's eating around $782 million due to the shutdown of the Nextel platform and a further $184 million to end leases on antenna sites for the moribund network. It's also having to take a hit of $204 million due to its investment into infrastructure partner Clearwire. It's affirmed its $1 billion lending facility, contingent upon purchasing gear from Ericsson to help build its LTE network, which it aims to have installed in 12,000 sites by the end of the year. Of course, that purchase was prompted by the collapse of Philip Falcone's doomed LightSquared project, which caused the Now Network to lose $66 million in cash and its childhood innocence when it comes to trusting other people. Update: Big Yellow also mentioned that it has no plans to adopt a shared data plan to follow AT&T and Verizon.
Sprint stops being Clearwire's majority owner
Sprint has declared that it's no longer Clearwire's majority owner in a move designed to shield the carrier should the worst happen to its troubled bedfellow. While Big Yellow is planning to supplement its own LTE network with Clearwire's TD-LTE backbone, it's looked to distance itself on the business side from a company that finds it very hard to make money -- requiring handouts from Sprint just to stay afloat.
LightSquared officially files for Chapter 11 bankruptcy
As expected, May 14th is indeed a dark day for LightSquared. The company has just filed paperwork in order to initiate Chapter 11 bankruptcy proceedings in Manhattan's US Bankruptcy Court, effectively killing its dream of providing a high-speed mobile wireless network to upwards of 260 million people. Not quite a year after Sprint and LightSquared put together an agreement that would ensure 15 years of blissful LTE enjoyment together, Philip Falcone's baby looks weaker than ever. With the Sprint tie-up now void, and over $1.6 billion in debt, there's probably not too many places for LS to turn. The primary hurdle -- one it never could seem to overcome -- was the FCC's outright refusal to believe any of the company's mitigation proposals in relation to GPS interference issues. Despite "profoundly disagreeing" and raising all sorts of chaos in an effort to get its way, LightSquared never did manage to convince the powers that mattered. Where it turns from here is anyone's guess, but it won't be a quiet fall from grace, we're surmising.
WSJ: LightSquared 'preparing' for bankruptcy protection filing, final decision coming tomorrow
Can't say it's striking us as any sort of surprise, but the seemingly destined-to-fail LightSquared just might be out of options. After getting a high-five from Sprint and plenty of attention for its initiatives in bringing yet another wireless option to America, those blasted GPS interference issues (or "supposed" issues, depending on who you ask) eventually became too much to overcome. According to a breaking report out of The Wall Street Journal, Philip Falcone's venture is seriously teetering on the edge of bankruptcy, as "negotiations with lenders to avoid a potential default faltered," according to the ever-present "people familiar with the matter." Purportedly, the two sides have until 5PM tomorrow to strike a deal that'll keep the firm out of bankruptcy court (if you'll recall, it owes over $1.6 billion dollars to various entities), but given just how far apart these sides remain, its fate seems all but sealed. We'll be keeping an ear to the ground for more, but don't go placing bets on yet another debt-term violation waiver.
Carl Icahn unloads his LightSquared debt, creditor talks trudge on
Carl Icahn is no stranger in this field -- he's been caught tussling with Motorola and bidding Yahoo's board adieu in recent years -- and most recently, he's managed to get caught up in one of the bigger wireless whirlwinds this planet has ever seen. Just months after Icahn swooped in to buy some $250 million in company debt at around 40 cents on the dollar, he has managed to offload that very chunk for 60 cents on the dollar. Not surprisingly, his cash coffers are growing in turn, despite LightSquared's position as a whole looking only marginally less bleak. According to a Reuters report, creditors have agreed to another week-long extension (until May 14th) in order to talk things over with head honcho Philip Falcone. As of now, the startup has around $1.6 billion in debt, and while talks may delay the pain, we're still not getting the impression that the FCC (or anyone else, really) is warming to its propositions. Then again, maybe Facebook can just buy it in an act of charity prior to its IPO.
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 will activate LTE on the 800MHz band in 2014
Sprint's Steve Elfman has said that the company's intending to activate an LTE service over its 800MHz spectrum by 2014. Big Yellow's already received 3GPP certification to turn Band 26 into super-fast mobile internet, the only remaining regulatory hurdle left to overcome is a thumbs-up from the FCC. The due date isn't set in stone, as it'll depend entirely on how quickly the company can force current iDEN users to migrate to its CDMA Direct Connect service. Meanwhile, LTE service in Atlanta, Baltimore, Houston, Dallas, Kansas City and San Antonio will activate across next year, with the company confident that it'll be able to keep pace with AT&T and Verizon's services by offloading traffic onto Clearwire's TD-LTE Network which should go live by June 2013. We can only guess that after that the announcement was done, Mr. Elfman looked at a picture of Philip Falcone and had to step outside for a little cry.
FreedomPop plans to give away mobile internet, still make money somehow
"Freemium" mobile broadband outfit FreedomPop has pulled back the curtain on how it plans to make money while giving away 4G internet. In an interview with GigaOm, Marketing VP Tony Miller revealed that once it has got enough consumers hooked on the gratis data, his company will start selling premium features, potentially including a VoIP solution for the network, now supplied by Clearwire after the collapse of LightSquared. The company will also charge a penny for every megabyte used over the free monthly allowance (currently pegged at 1GB) and build a social network where more data can be earned and traded between friends. Alongside the WiMAX shell for the iPhone, we can also expect to see an iPod Touch edition, USB dongle and mobile hotspot arrive before the network's launch. The company doesn't have too long to iron out the kinks in the business plan however, as it'll go live in the third quarter of 2012.
Sprint to LightSquared: it's over
The writing's been on the wall for a few weeks and now Sprint's officially severing its partnership with LightSquared. Philip Falcone's project had a contractual deadline of March 15th to gain regulatory approval for its LTE service on the 1.6GHz spectrum, which was shot down by the FCC in February. A day later, Big Yellow exercised its right to pull the plug, paying back $65 million in prepayments and continuing to build out a LTE network on its own. Nextel's better half didn't slam the door shut entirely, however. If, by some miracle (and it would be a big one), the company can change Julius Genachowski's mind, it'd certainly consider teaming up again, so no hard feelings, eh? For its part, LightSquared has issued a formal response, saying that the contract termination is in "the best interests of both parties" and "not unexpected given the regulatory delays." On the upside, the company has had its coffers swelled by a not inconsiderable $65 million, which is the first good news it's had for a while.
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.
Report: Sprint planning to dump Lightsquared as early as next week
According to Bloomberg, Sprint is considering pulling the plug on its partnership with Lightsquared as early as next week. Philip Falcone's burgeoning enterprise was subject to a March 15th deadline to gain approval for a nationwide LTE network, but that was shot down by the FCC last month. The company's been treading water ever since and whilst it remains optimistic that a workaround can be found, it's already ousted former CEO Sanjiv Ahuja, fired 45 percent of its staff and defaulted on a $56 million payment to Inmarsat. The same report claims that Nokia Siemens Networks, the infrastructure arm of the handset maker has suspended network building projects until further notice. The split would cost Sprint around $74 million, but given the current state of affairs, that may look like a bargain.
LightSquared CEO Sanjiv Ahuja steps down, company remains committed to wireless network
The shakeup continues at LightSquared. Just days after the would-be LTE wholesaler confirmed that it would be cutting its staff by 45 percent, it's now announced that CEO Sanjiv Ahuja has resigned from his position, although he will continue to serve as chairman of the board. Chief network officer Doug Smitand and chief financial officer Marc Montagner will serve as co-chief operating officers as the company searches for a new CEO. What's more, LightSquared has also announced that billionaire backer Philip A. Falcone has been appointed to the company's board of directors, and he himself has reiterated the company's intent to build out its wireless network, noting that it is "committed to working with the appropriate entities to find a solution to the recent regulatory issues." The company's official announcement can be found after the break.
LightSquared to cut staff by 45 percent as troubles grow
Yet another bit of bad news to add to the pile for LightSquared -- the company announced this week that it will be cutting back on its employment numbers by 45 percent. The cost cutting move comes a day after word got out that it had defaulted on a hefty $56.25 million payment. According to reports, the Virginia-based company, which currently employs some 330 people, is apparently not looking into bankruptcy, in spite of its mounting troubles.
LightSquared's troubles continue, company defaults on $56M payment to Inmarsat
It's been a while since LightSquared had some good news to boast about, and it doesn't look like that situation's about to change anytime soon. The latest stumble for the company stems from its 2007 agreement with UK-based satellite operator and spectrum owner Inmarsat, which was due a $56.25 million payment from LightSquared that it has now defaulted on. For its part, LightSquared is laying some of the blame on Inmarsat, saying that it has "raised several matters that require resolution" before the first phase of the agreement comes to a close, and that "the terms of the agreement allow for additional time to resolve pending questions before phase one is complete and the final payment is due." This comes as the company faces a brick wall in the form of the FCC, which it has been struggling to get approval from and has recently been criticizing in increasingly blunt terms. Its full statement on the Inmarsat matter can be found after the break.
LightSquared grasps at straws, slams FCC in a statement
To say it's been a bumpy road for LightSquared over recent months would be an understatement. However, developments this week could see the beleaguered company reach a critical fork in the road. On Tuesday, the National Telecommunications and Information Administration confirmed that LightSquared's planned network would indeed interfere with global positioning systems, and that there was no "practical way" to work around this. The FCC subsequently proposed to indefinitely suspend LightSquared's authority to migrate its satellite spectrum to land-based use. Unsurprisingly, this evoked a less than cheerful response from the troubled startup, which slammed the FCC in a statement, claiming it's "harmed not only LightSquared, but also the American public" and accusing the committee of "the height of bureaucratic irresponsibility." The following day, the Wall Street Journal reported that firm was now making a last-ditch effort to revive hope, by attempting to exchange its wireless licenses for ones similar to those operated by the Department of Defense. Reuters has since reported that contrary to rumors that the company was seeking restructuring advice, hedge fund manager Philip Falcone claims that filing for bankruptcy would be off the cards, defiantly stating "there are other ways around this." As to what these other ways include we're as yet to see, but we admire the optimism.
Sprint may have dug itself a $65 million hole with LightSquared partnership
Well, if there's a silver lining for LightSquared in the debacle that has been its attempt to launch a nationwide LTE network, it's that it should be getting a $65 million check from Sprint if everything collapses. The former WiMAX champion and LTE convert may have to return the cash it received as part of a 15 year agreement if the FCC doesn't approve the 4G venture by a March deadline. There is still a chance for an appeal of the commission's decision to reject LightSquared's bid to build an LTE network. But, with the company's inability to solve its vexing GPS issues and increasingly desperate looking maneuvers, we wouldn't be surprised if the check was already in the mail.
