The one thing Philip Falcone doesn't have is time. Investors of his faltering hedge fund "Harbinger" are pulling money out as fast as they can. The guy is over a billion in debt (with debt growing) and his hedge fund has dropped something like 60% in value over the last year or two. Falcone is also facing impossible deadlines extablished by the FCC to be fully operational late next year. Plus most politicians on the hill are strongly against allowing LS to operate (in its current state) now or in the future.
Going forward only two things can happen regarding Lightsquared's future.
1. Lightsquared shuts down or files for bankruptcy due to GPS interference issues and lack of adequate funding.
2. Lightsquared delays its wireless LTE venture for a couple years until everyone can figure a way LS and the GPS insdustry, DOD, Dept of Agriculture, FAA, Police, Fire Departments, etc. to live in harmony.
Odds of opton (1) happening are 85% while option (2) 15%. Sure there is value in LS spectrum holding, but at substantially reduced costs for reasons stated above.
If you don't belive me, pleae read the following.
Tests Confirm LightSquared's GPS Interference, Group Contends
Why aren't all you arm-chair quarterbacks talking about:
1) gps receivers are causing the problem by looking into the L-band, and
2) the gps industry has known about this problem for years???
??? Asking why an industry can't be forced into recalling millions of years-old devices is the ultimate in armchair quarterbacking.
True, the ultimate fault lies with whomever OK'd test specs that didn't test out-of-band filtering, but it's long done. You can't certify devices, then force a manufacturer to recall and replace years later. Ain't happening.
in the early days of SkyTerra, many of us were already wondering what magic trick would make this a viable band... now we know. Once the FAA starts hinting at planes losing nav over metro areas, you're half dead.
So when are you completely dead? When you start depending on Congress to vote against the wishes of the farming community (i.e., where we are right now).
Time is everything...
...EVERYONE knows its the GPS receivers...but who wants to wait for them to fix them???
and get tangled up in court over who is going to pay...
skip over the problem make a deal with sprint and clwr...
if i am hesse....and the ceo of clwr....i am on a plane to go visit them before june 15......EVERYONE can come out a winner.....its a perfect deal....
so many logical ways to get that deal done its not even funny.
the ball is in falcones court it come down to him seeing the problem and finding the solution....
.....then after you are up and running you can have the gps industry purchase the l band that they so much desire...
Time is money my friend and as the first poster clearly states - Falcone time is up. His hedge fund is almost broke, he is under a federsl SEC investigaton for illegal trading and more reports are flooding in regarding major issures.
During a meeting here sponsored by the federal government's GPS advisory board, Kirkland said the testing data "confirm what the industry told the FCC" and also "confirms that there is no viable technical fix." The FCC should stop "trying to find a solution to an unfixable problem."
Can you hear that distant noise? Its Harbinger investors screaming and tearing their hair out and there financial investment blows up in smoke.
its looks bleak for LS2
they really should have performed the test in 2005
what they can do is find a new band to operate from....
a deal with someone else is probably going to be the only quick fix......if they wait a year or two...it will already become old tech....and they will loose any market share...
clwr huge winner....hence sprint as well.
billion dollar blunder on their behalf
Now the question is can Falcone salvage any parts of his broken company? Don't know but with reports like this the game is over. Lightsquared was a rush to judgement and should of never been fast tracked by the FCC. The real losers are Harbinger investors - they are really going to take a huge bath.
"The test data discussed today makes clear that there is substantial interference to GPS if LightSquared turns on high-powered terrestrial facilities in the spectrum next door to GPS," said James Kirkland, a VP of Trimble Navigation and founding member of the Coalition to Save Our GPS.
The group consists of companies in the aviation, agriculture, transportation, construction, engineering, and surveying industries as well as suppliers of GPS-based equipment and services.
Garmin, a maker of commercial GPS equipment and portable navigation devices (PNDs), previously conducted its own limited tests and has contended that the network will interfere with consumer, commercial, and public-safety GPS equipment.
During a meeting here sponsored by the federal government's GPS advisory board, Kirkland said the testing data "confirm what the industry told the FCC" and also "confirms that there is no viable technical fix." The FCC should stop "trying to find a solution to an unfixable problem" and should "focus its efforts on finding spectrum that LightSquared can operate in - where LightSquared won't interfere with GPS."