News Release Touts $264 Million In New Capital

After several weeks of congressional hearings and bad press regarding possible interference with GPS equipment, wireless broadband company LightSquared announced July 5 they have raised millions of dollars in new investments.

The controversial startup claimed it raised $264 million in new capital to add to more than $2.3 billion it has raised in the past year.
 
“This latest round of financing signals another endorsement by the financial markets of our business model, and LightSquared’s intent to use private capital to build out a new network to meet the growing demand across this entire nation for wireless broadband access,” said LightSquared CEO Sanjiv Ahuja in the news release. 

This news comes as LightSquared has scaled back its plans in order to avoid using broadband signals that are closest to the GPS spectrum. The company put forth what it called a "solution" last month which would have it launching its service on a lower portion of spectrum it says will cause less interference. The Coalition to Save Our GPS and other experts have voiced concerns over the company’s potential harm to existing GPS capabilities that are used in the aviation industry, and said the company's "solution" was no solution at all.
 
Despite assurances coming from LightSquared, many GPS manufacturers are demanding that plans to use frequencies close to the GPS spectrum should not be used at any point. The FCC is now evaluating the interference test results and must approve the plan before LightSquared can move forward.

FMI: www.fcc.gov