FCC in hot seat - Lightsquared can't pull a fast one
Sorry to blow a hole in some of the Lightsquared rah-rahs here but as I have been saying for some time, Lightsquared is one very risky venture that has the potential to do major damage to GPS systems worldwide.
Now we have two senators from two different states breathing fire down the FCC throat saying before you take further steps with Lightsquared you better do your homework and make sure Lightsquared proves beyond a shadow of a doubt their bogus satellite signals won't screw up GPS senders and users. Read on and realize Phil Falcone could be in major trouble and Sprint would be a "Fool" of a company to try to do business with Lightsquared.
But an analyst said last week that it would be difficult for Sprint to use LightSquared as its 4G spectrum partner, given “increasing chatter” about interference issues. A coalition of GPS users and manufacturers — including Olathe-based Garmin Ltd. (Nasdaq: GRMN) and branches of the military — warned in February that LightSquared’s wireless communications network could interfere with the satellite signals that make GPS devices work. LightSquared told the FCC that its proposed 4G wireless network wouldn’t cause interference, even though its radio frequencies would be close to GPS frequencies. Earlier this year, the FCC’s International Bureau granted a conditional waiver to LightSquared allowing it to build 40,000 ground stations to rev up its satellite network in the United States. A Friday statement from Roberts’ office said those stations could cause widespread interference to nearby GPS receivers; LightSquared is using an adjacent spectrum. The letter to the FCC from the senators comes after a related written exchange between Roberts and LightSquared. In a Thursday letter to Roberts, Carlisle said he shared the senator’s concern about how LightSquared’s service may affect GPS receivers.
So true and what's bad for LightSquared is good for Clearwire. Hope Mr. Hesse can read since rumors of any LightSquared deal should remain a rumor. The last thing Sprint needs is to do business with another "pie in the sky company" that sucks more money from Sprint's cash reserves. If Mr. Hesse wants to stay CEO of Sprint he would be wise to tell Falcone to take a hike and let LightSquared die on the vine.
FCC better do its job right and do two things going forward.
Reject the AT&T take over of T-Mobile and
Tell LightSquared it no longer has FCC approval to do business with anyone.