LightSquared Offers Plan to Squash Satellite 4G Interference Concerns
October 1, 2012 10:41 AM
comment(s) - last by
Embattled firms scores deal with debtors, even as it submits a painful, yet promising proposal to the FCC
, embroiled in
controversy over special-interest handouts
, and crippled by a scathing review that suggested its business model would effectively
destroy GPS use
in the U.S.; it certainly seemed like we'd seen the last of billionaire investor Phillip Falcone's
satellite 4G LTE bid
, LightSquared Inc.
But the company is back with a surprising plan that sacrifices much, but could offer a gasp of life to the seemingly doomed effort.
The company's filed request with the
Federal Communications Commission
asks permission to use the 5 MHz of its spectrum that's farthest from the block used by GPS signals. LightSquared agrees, in exchange, to not use the "upper" 10 MHz of the spectrum, saving it as a buffer to prevent interference.
The scheme is
similar to a proposal by AT&T
, Inc. (
) that recently broke over a decade of deadlock, receiving senior FCC official's blessing.
The plan is a painful one for LightSquared -- it is essentially giving up two thirds of its spectrum. But there is an old saying: "
Something is better than nothing
LightSquared is giving up a two-thirds of its spectrum to try to convince regulators to let it use the final third. [Image Source: LightSquared]
That certainly seems to ring true in this case.
The company is currently at a crucial stage in its Chapter 11 bankruptcy, which was filed in May. Alongside the FCC request is a critical plea to the judge in charge of bankruptcy asking to extend to at least last summer the time needed to file an exclusive reorganization plan. The extension would give LightSquared time to see if it can sell the FCC on the buffered spectrum plan and possibly start to monetize the plan, if approved.
There's much at stake for hedge fund manager and former semi-professional hockey player Phillip Falcone. Currently
facing fraud charges
from U.S. federal securities regulators, Mr. Falcone has also been battling with a group of creditors, whom LightSquared owes $1B USD.
Philip Falcone, one a venture capital wizard, lost nearly half his fortune and is facing fraud charges over the LightSquared mess.
[Image Source: Jacob Kepler/Bloomberg/Getty Images]
The Wall Street Journal
, which first broke news of the new FCC request,
U.S. Bankruptcy Judge Shelley C. Chapman
-- the judge presiding over LightSquared's Chapter 11 -- gave Mr. Falcone a gift when she told the lenders that she would like side with Mr. Falcone. That prompted the lenders to back down from their demands of either selling the embattled firm's remains or for Mr. Falcone to personally repay them. Likely it means that the lenders will now have their debt restructured to reflect on the new fiscal reality facing the telecom.
It's the fourth quarter for LightSquared and the company is down by a couple scores, but the last couple of weeks have suggest that maybe -- just maybe -- it has a comeback left in the tank.
This article is over a month old, voting and posting comments is disabled
10/1/2012 8:27:59 PM
5mhz is hardly enough spectrum to build a network on. Might be able to support 120Mb. That will especially not be enough if they get involved with 'unlimited' plans like Sprint.
"Spreading the rumors, it's very easy because the people who write about Apple want that story, and you can claim its credible because you spoke to someone at Apple." -- Investment guru Jim Cramer
FCC Considers AT&T LTE Spectrum Conversion, Sirius Interference Solved
September 27, 2012, 1:33 PM
The Debacle Continues: LightSquared CEO Charged With Fraud
June 28, 2012, 11:26 AM
Game Over: LightSquared Goes Bankrupt
May 14, 2012, 7:44 PM
Bribes and LTE: the Bizarre Case of LightSquared, Obama, and the USAF
January 24, 2012, 1:25 PM
LightSquared Wireless Service Signals Interrupt 75 Percent of GPS Receivers
December 12, 2011, 1:00 PM
Report: Next-Generation Surface RT Tablet to Feature Qualcomm's Snapdragon Processor
June 19, 2013, 8:41 AM
Google Starts Testing Balloons to Provide Internet Service to Ground Users
June 19, 2013, 8:20 AM
Lenovo Introduces $900, 15" ThinkPad S531 Ultrabook
June 18, 2013, 3:46 PM
Just How Powerful is the Xbox One? Microsoft is Confused
June 18, 2013, 11:30 AM
Microsoft Offering Schools/Colleges $199 Surface RT Tablets
June 18, 2013, 10:24 AM
Quick Note: First "Apple Approved" iOS Game Controller Pictured
June 17, 2013, 10:20 AM
Most Popular Articles
Source: Don't Worry, NSA Spies on "99 Percent" of Americans' Locations, Call Records
June 14, 2013, 3:57 PM
Xbox Chief: If You Can't Get Online, Don't Buy an Xbox One
June 12, 2013, 9:57 AM
GigaHertz Wars 2.0? AMD Releases World's First 5.0 GHz FX Processor
June 11, 2013, 3:16 PM
Former Palm CEO: Selling Palm to HP was a Waste
June 12, 2013, 10:19 AM
Report: Apple to Release Larger iPhone Screens, Cheaper iPhone for $99
June 13, 2013, 9:41 AM
Latest Blog Posts
Lumosity: Does it Work?
May 22, 2013, 8:20 PM
Quick Note: Sony "Teases" PS4 Ahead of Xbox Reveal in New Video
May 20, 2013, 12:33 PM
Nokia Introduces Instagram-Like App of Its Own to Help Lumia Sales
May 20, 2013, 7:10 AM
Parents of Pre-Teen Drivers Commonly Practice Distracted Driving Says Study
May 9, 2013, 7:16 AM
Apple's iOS 7 Running Into Internal Delays Due to Massive Overhaul
May 1, 2013, 4:26 PM
More Blog Posts
Copyright 2013 DailyTech LLC. -
Terms, Conditions & Privacy Information