Log in
Lost password
Become a member for free
Sign up
Sign up
Dynamic quotes 

4-Traders Homepage  >  News  >  Business Leaders  >  All news

Business Leaders

Latest NewsCompaniesMarketsEconomy & ForexCommoditiesHot NewsMost Read NewsRecomm.Business LeadersVideosCalendar 
HomeAll newsMost read newsBusiness Leaders Biography 
Birthday : 11/30/1963
Place of birth : USA
Biography : Mr. Philip A. Falcone is Independent Director at Novatel Wireless, Inc., Chairman, President & Chief

Falcone's LightSquared May Seek Airwaves Swap To Revive Plan

02/15/2012 | 04:23pm US/Eastern
   By Greg Bensinger 

Philip Falcone's LightSquared may seek to exchange its wireless airwave licenses for similar ones operated by the U.S. Department of Defense, in a last-ditch effort to revive its fourth-generation mobile broadband service, according to people familiar with the company's plans.

The possible strategy comes a day after officials from the Federal Communications Commission said they planned to revoke a waiver allowing the network to operate because of interference concerns.

LightSquared had been criticized by the Defense Department, legislators and makers of farm equipment and Global Positioning System devices that its network signal operates too close to those used for GPS and could interfere.

In comparison, the Defense Department airwaves--used primarily for aircraft testing--operate on a frequency farther away from GPS signals making it less likely to cause any jamming, the people said. Such an airwave swap is among several options the company is considering in response to the FCC action Tuesday, the people said, and LightSquared may ultimately not pursue it.

A spokesman for the Reston, Va.-based LightSquared declined to comment on the company's plans. Also, a Defense Department spokeswoman had no immediate comment, and an FCC representative declined to comment. It is unclear which agencies may need to approve such a deal.

The move would represent a change in strategy for LightSquared. The company has said it is the victim of incomplete testing and that its proposed network would create thousands of jobs and ease congestion on carriers' services as more Americans buy data-hungry smartphones and tablet computers. Falcone also has invested billions of his Harbinger Capital Partners hedge fund's money in the venture.

The matter came to a head on Tuesday when the National Telecommunications and Information Administration, a unit of the Commerce Department, sent a letter to the FCC saying it could find no way to lessen GPS interference from LightSquared. Shortly afterward, the FCC said it would recommend against allowing LightSquared to roll out its network.

LightSquared said on Tuesday that it "profoundly disagrees" with testing that showed its network caused GPS interference. LightSquared has argued that the GPS industry should have anticipated any interference and should be required to pay for filters that would block out the company's signal.

A Commerce Department spokeswoman said she had no immediate comment.

The FCC granted LightSquared a waiver in early 2011 to operate satellite wireless airwaves, or spectrum, for a land-based nationwide network that would reach 260 million Americans by the end of 2015. LightSquared hoped to compete with AT&T Inc. (>> AT&T Inc.), Verizon Wireless and others in selling its spectrum wholesale and had agreements with Best Buy Co. (>> Best Buy Co., Inc.), Leap Wireless International Inc. (>> Leap Wireless International, Inc.) and other companies.

LightSquared may lose an important partner in Sprint Nextel Corp. (>> Sprint Nextel Corporation) if it cannot get FCC approval to operate by mid-March. The two companies reached a 15-year agreement to share network resources and construction expenses that would have saved LightSquared as much as $13 billion through the end of this decade.

Sprint had recently given LightSquared two extensions to get approval from the FCC. Sprint may have to return $65 million in prepayments to LightSquared if it fails to meet its latest deadline.

Falcone's Harbinger Capital, the primary financial backer of LightSquared, reported the value of its largest fund dipped 47% last year because of a write-down of the value of the wireless company. LightSquared has said it has enough cash on hand to operate for several quarters, without providing specifics.

The company faces additional competition from Dish Network Corp. (>> DISH Network Corp.), which has a pending application with the FCC to also operate satellite spectrum for a terrestrial wireless network. Dish has said it expects the FCC to rule by the end of March, but that it would take several years to build out a network after approval.

-By Greg Bensinger, Dow Jones Newswires; 212-416-4676; greg.bensinger@dowjones.com

--Amy Schatz contributed to this report.

React to this article
Latest news about Philip Falcone 
04/28DJPHILIP FALCONE : Judge Dismisses Falcone Suit Against Dish
03/09 PHILIP FALCONE : New Harbinger Group CEO Doesn’t Want To Hear The Words ‘Phil’ Or ‘Falcone’ In His Presence
02/06 PHILIP FALCONE : HARBINGER GROUP INC. - 10-Q - Management's Discussion and Analysis of Financial Condition and Results of Operations
2014DJPHILIP FALCONE : LightSquared Files Restructuring Plan That Includes Phil Falcone
2014 PHILIP FALCONE : Falcone steps down as CEO from Harbinger
2014DJPHILIP FALCONE : Falcone Tried to Shut Dish Chairman Ergen Out of LightSquared Plan
2013 PHILIP FALCONE : Fund manager Falcone banned from insurance unit - NY officials
2013 PHILIP FALCONE : NY bans fund manager Falcone from insurance unit
2013DJPHILIP FALCONE : LightSquared Wants Time to Consider Joining Falcone's GPS Suit
2013 PHILIP FALCONE : Judge OKs SEC's Falcone settlement with admission of wrongdoing
2013 PHILIP FALCONE : Falcone agrees to industry ban in new SEC settlement
2013 PHILIP FALCONE : SEC rejects settlement with fund manager Phil Falcone
2013 PHILIP FALCONE : Feds sideline billionaire Falcone from fund business
2012DJPHILIP FALCONE : LightSquared Lenders Want Documents From Harbinger, Falcone
2012DJPHILIP FALCONE : Sprint May Cut Ties With Falcone's LightSquared
1  2  3  4  5  6  7  8  9  10Next

Most Read News 
11/19 JACK DORSEY : Dorsey's Square jumps in market debut, offering hope to tech startups
11/20 STEVE JOBS : Laurene Powell Jobs backs Amplify education company bought from News Corp
11/19 DERMOT DESMOND : Ladbrokes resolute on Coral deal after criticism from shareholder Desmond
09:04a PHILIP GREEN : Philip Green's Arcadia sees pre-Christmas sales fall
11/20DJPETER NICHOLAS : Hillary Clinton to Propose Middle-Class Tax Cuts--Update
11/24DJR. JOHNSON : BlackBerry Executive Eric Johnson Leaves Company
11/23 JACK MA : Alibaba's Jack Ma seeking stake in SCMP publisher - Bloomberg
More news

Popular Business Leaders 
William Ackman Jean-michel Aulas Ernesto Bertarelli Luc Besson Vincent Bolloré Martin Bouygues Warren Buffett Paul Desmarais David Einhorn Albert Frère Bill Gates Philip Green Carl Icahn Steve Jobs Li Ka-shing Arnaud Lagardère Robert Louis-dreyfus Maurice Lévy Lakshmi Mittal Rupert Murdoch Xavier Niel Nelson Peltz Ferdinand Piëch Ted Rogers Johann Rupert Carlos Slim George Soros Ratan Tata Donald Trump Alain Weill
A-Z Business Leaders