LightSquared's owner hires lawyers to study legal battle on GPS

Philip Falcone of Harbinger Capital partners might sue the FCC and GPS industry or swap spectrum with the Defense Department

LightSquared's primary investor, Philip Falcone, is exploring possible lawsuits against the FCC and the GPS industry in the wake of the FCC's rejection of the carrier's plan for a 4G cellular network, sources familiar with the company's planning confirmed on Friday.

The U.S. Federal Communications Commission, which has the final say on LightSquared's plan to build an LTE (Long Term Evolution) network using spectrum next to the band used by GPS, acted to kill that plan on Tuesday. LightSquared is owned by Harbinger Capital Partners, the hedge fund run by Falcone.

Falcone has hired outside lawyers to study the potential lawsuits and is also considering ways to appeal the FCC's decision or possibly swap LightSquared's current spectrum for other frequencies assigned to the U.S. Department of Defense, according to Wall Street Journal reports that were confirmed by sources. Through a lawsuit, the company might seek to force GPS vendors to make their receivers filter out LightSquared's frequencies, the Journal said.

Any lawsuit or appeal of the FCC's decision would be a long shot for LightSquared's owners, according to industry observers. LightSquared was granted a waiver to sell wholesale services over LTE and satellite separately, a key part of its business model, only on the condition that interference with GPS receivers be resolved first. After a series of tests last year, the National Telecommunications and Information Administration said on Tuesday that it had concluded the two systems could not coexist.

LightSquared has repeatedly said the second round of interference tests last year was rigged by GPS equipment makers and government officials who it says are beholden to the industry. If the company appeals the FCC's action, it might argue that the decision was based on flawed tests. But even if such an appeal succeeded, the company might not have enough money to keep going until it received approval. LightSquared has said it has enough capital to operate for several quarters.

LightSquared and Harbinger Capital Partners declined to comment.

Stephen Lawson covers mobile, storage and networking technologies for The IDG News Service. Follow Stephen on Twitter at @sdlawsonmedia. Stephen's e-mail address is stephen_lawson@idg.com

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Stephen Lawson

IDG News Service
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?