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Summary:

After a year of LightSquared fighting GPS industry and government agencies over whether its network would interfere with GPS receivers, the Federal Communications Commission dropped the hammer Tuesday evening, saying it would revoke the would-be carrier’s terrestrial network waiver.

LightSquared

LightSquared’s quest to build a nationwide LTE network appears to be finished. After a year of LightSquared fighting the GPS industry and government agencies over whether its network would interfere with GPS receivers, the Federal Communications Commission dropped the hammer Tuesday, saying it would revoke the would-be carrier’s terrestrial network waiver. That leaves LightSquared few remaining options except suing.

The sudden capitulation by the FCC comes after the agency tried desperately to help LightSquared succeed — granting it multiple waivers so it could build a combined satellite and terrestrial mobile broadband network. The commission hoped LightSquared would create a wholesale wireless network that could mitigate the growing power and control that AT&T and Verizon Wireless have in the mobile industry. It apparently has given up on that dream, or found it politically expedient to back down.

Here’s the FCC’s statement from spokeswoman Tammy Sun:

LightSquared’s proposal to provide ground-based mobile service offered the potential to unleash new spectrum for mobile broadband and enhance competition.  The Commission clearly stated from the outset that harmful interference to GPS would not be permitted.  This is why the Conditional Waiver Order issued by the Commission’s International Bureau prohibited LightSquared from beginning commercial operations unless harmful interference issues were resolved.

NTIA, the federal agency that coordinates spectrum uses for the military and other federal government entities, has now concluded that there is no practical way to mitigate potential interference at this time.  Consequently, the Commission will not lift the prohibition on LightSquared.  The International Bureau of the Commission is proposing to (1) vacate the Conditional Waiver Order, and (2) suspend indefinitely LightSquared’s Ancillary Terrestrial Component authority to an extent consistent with the NTIA letter.  A Public Notice seeking comment on NTIA’s conclusions and on these proposals will be released tomorrow.

Early last year, LightSquared’s plan to build a competing nationwide mobile broadband network over repurposed satellite spectrum seemed to be sailing through, but the company quickly ran into the full might of the GPS industry’s lobbying arm. The Coalition to Save Our GPS claimed that there was no network LightSquared could deploy in the satellite L-band that wouldn’t knock out millions of GPS navigation, location and timing devices. Several government studies backed up the GPS industry’s claims, causing LightSquared to go on the offensive, refuting not only the conclusions of those studies but accusing the government agencies that penned them of bias.

At the heart of the LightSquared’s argument is that GPS device makers used sloppy designs to build their receivers. Instead of staying within the designated GPS bands, those receivers reached far out into the L-band, effectively squatting on LightSquared’s airwaves. While that was true, it put the FCC in a precarious political position. While it couldn’t condone the GPS industry invading LightSquared’s frequencies, it also couldn’t give the green light to a network that could potentially overpower millions of GPS devices.

Whether it was politics or practicality, the FCC is exercising its right to halt LightSquared’s plans. While LightSquared has portrayed itself as the victim of the whims of the GPS lobby, its waiver to launch LTE was always conditional. And the condition the FCC placed on the carrier was that its network would not harm GPS.

LightSquared’s plans aren’t officially canceled — there’s still plenty of bureaucracy to wade through, including a public comment period on the government’s GPS interference conclusions. But the FCC has made its position clear, which means that — saving some political miracle — LightSquared’s final resort will be the courts. Satellite band analyst Tim Farrar of TMF Associates, however, doubts LightSquared will have the financial wherewithal to fight much longer. He wrote in his blog:

With LightSquared set to run out of money in the near future, the company must now consider whether to file for bankruptcy and preserve its resources for the inevitable litigation fights, or continue pretending that all of these problems can be overcome while its cash drains away.

While we at GigaOM have doubted LightSquared’s ability to succeed, it’s a situation where we would have been happy to have been proven wrong.

  1. I know nothing about this matter other than what’s in this article, but accepting the article as fact, it sounds to me like LightSquared is owed rights fees for use of its airways….and likely a substantial damage award.

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  2. William Diaz ✔ Wednesday, February 15, 2012

    In this case, Id say that LightSquared is due a refund of the spectrum they cant use, in addition to charging ALL GPS manufactures and companies using ANY device/GPS that infringes on parts of the spectrum they do own a rather large fee. Technically if they own it, but another is on it, they can sue to vacate, or sue and win settlements.

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    1. You’re misunderstanding the issue. The issue isn’t that anyone is transmitting on the frequencies LS owns – it’s that some GPS devices (not all) can receive on those frequencies, and hence can be interfered with. No one’s “using” LS’ spectrum.

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  3. Lindsworth Horatio Deer Wednesday, February 15, 2012

    About time somebody tole LightSquared that their plan would make GPS unworkable. Why not use Optical Frequencies instead? or Frequencies in the 14 GHX range!!!!! That makes more sense, as those frequencies are in the satelite broadband range and would have the capacity to power a ground based LTE Network from satellites in space??

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  4. LS bought low power (as in there is little power left when it reaches us from space) satellite bands with the intention of using them for a terrestrial network. There is a big difference between one satellite beaming down a low power signal and hundreds of cell towers flooding an area in the same band. LS knew the issues going in, as did the FCC when they said LS was open to try, but had to make it work without disrupting anything else. LS couldn’t and so they painted themselves as victims of some conspiracy to prevent them from using their rightfully purchased property. When it was more like they were trying to pull a fast one, avoiding going toe to toe with the big boys in the bandwidth auctions for terrestrial frequencies and hoping no one would notice that they were operating in an area where high density terrestrial networks don’t belong.

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