Says Company Is 'Committed To Finding A Solution'

Following Wednesdays decision by the FCC to not allow LightSquared to proceed to develop its 4G broadband data network on frequencies adjacent to those used by GPS receivers, LightSquared issued a statement blasting the agency, saying it had caved in to special interests by protecting GPS. In a statement, the company said that the FCC had "harmed not only LightSquared, but also the American public by making it impossible to build out a system that would meet public policy goals of successive administrations."

"For more than a decade, LightSquared and its predecessor companies have worked to bring a private sector solution to a public problem – expanding wireless broadband connectivity to every corner of this country – and in doing so, encouraging economic development, increasing competition and lowering prices for American consumers," the company said in a statement posted on its website. "Recognizing that America was not keeping pace with the rest of the world with respect to wireless innovation, the United States government encouraged, and in our case, mandated investment from the private sector to help solve this problem. They did this to help ensure that we no longer lose ground to global competitors and fall behind in a technology crucial for creating jobs and growing economies in the 21st century.

"Today, we ask the FCC to restore American values of rule of law and regulatory certainty to help America maintain its place as a global leader in both public safety and economic development.

LightSquared said it had consistently received regulatory approvals over the years. The FCC approved LightSquared to build its ground network in 2005, and in 2010, the agency amended that plan, requiring LightSquared to build a national broadband network that reached 260 million Americans. "At the government’s mandate, LightSquared began investing billions of dollars in America’s infrastructure – without asking for any money from the American taxpayer," the company said. "Yesterday (Wednesday), after LightSquared had already spent nearly $4 billion, the FCC changed its mind. There can be no more devastating blow to private industry and confidence in the consistency of the FCC’s decision-making process.

"It is not surprising that, as with all innovative new technologies, scientific concerns became an issue. In this case, the government decided to choose winners and losers. Politicians, rather than engineers and scientists, dictated the solution to the problem from Washington.
 
To leave this problem unresolved is the height of bureaucratic irresponsibility and undermines the very principles that once made America the best place in the world to do business. We remain committed to finding a solution and believe that if all the parties have that same level of commitment, a solution can be found. The American people send their representatives to Washington to solve tough problems and make our country better – not to undermine and pull the rug from under private enterprise."

The Chicago Tribune reports that LightSquared CEO Philip Falcone has ruled out bankruptcy as an option for the now-struggling startup. He told the paper that he has a plan for dealing with the setback handed them by the FCC Wednesday, but did not offer any details of that plan. But some analysts say that the company has few options, and little hope of getting the FCC to change its mind again. One hedge fund manager a Chapter 11 filing by the company "seemed inevitable" following the FCC ruling.

FMI: www.lightsquared.com, www.fcc.gov