Government agencies have struck a dagger into the plans of LightSquared to launch a high-speed wireless network across the nation.
On the recommendation of an agency within the U.S. Department of Commerce, the Federal Communications Commission yesterday indicated it would reject LightSquared's plans to operate a network.
The reason: Government agencies have concluded that its proposed mobile broadband network would interfere with GPS systems and there there's no way to mitigate such harm at this time.
"Based on the testing and analyses conducted to date, as well as numerous discussions with LightSquared, it is clear that LightSquared's proposed implementation plans, including operations in the lower 10 MHz would impact both general/personal navigation and certified aviation GPS receivers," wrote Lawrence Strickling, the top official of the National Telecommunications and Information Administration, in a letter dated Feb. 14 to FCC Chairman Julius Genachowski. "We conclude at this time that there are no mitigation strategies that both solve the interference issues and provide LightSquared with an adequate commercial network deployment."
More than a year ago, the FCC granted LightSquared a conditional waiver that would have allowed the company to operate its high-speed network provided that LightSquared first resolved concerns over harmful GPS interference. The agency on Tuesday said its international bureau is proposing to vacate that order and would release a notice seeking public comments on NTIA's conclusions and some FCC proposals. The proposals, which include plans to vacate the conditional waiver order, cast a dark cloud over whether LightSquared will be able to operate its network in the coming years.
Responding to NTIA's recommendation to the FCC, LightSquared said "it remains committed to finding a resolution with the federal government and the GPS industry to resolve all remaining concerns."
Some analysts, however, doubt LightSquared will have much success wrangling with the feds.
"LightSquared can oppose the FCC moves and seek more time for commercial deployment, but we doubt it will succeed," Stifel Nicolaus analyst Christopher King wrote Wednesday in response to the development. "It could also pursue litigation, but we're skeptical the courts would reverse the FCC, backed by the Administration and bolstered by recent congressional legislation, on a matter implicating national security and aviation safety, at least anytime soon."
LightSquared has said that its network would be different from others because it would integrate its national LTE network with satellite coverage. Another differentiator: LightSquared has been planning to offer service on a wholesale basis to mobile operators such as Sprint and other companies that wish to offer high-speed wireless services.
