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Interference, funding could hamper LightSquared’s future

Leaked accounts that the latest round of interference testing to see whether LightSquared’s attempt to launch an LTE network would interfere with commercial GPS communications garnered a strong reaction from LightSquared, though that reaction did not refute claims that interference still exists.

Reports indicated that the latest round of testing showed continued interference from LightSquared’s ground-based cellular system and GPS systems that both use spectrum in the 1.6 GHz band. LightSquared issued a terse condemnation of that leak, noting that the interference claim was false that ignores “a critical element in LightSquared’s mitigation proposal to manage the power from its network that GPS devices will be able to receive.”

“By ignoring this commitment by LightSquared, this conclusion is erroneously based on estimated power levels that are up to 15 times the levels guaranteed by LightSquared,” explained Martin Harriman, executive vice president of ecosystem development and satellite business at LightSquared. “It is important for the public to understand the purposeful manipulation at hand here: The NTIA, not the leakers of this raw data, will make the final determination about how many devices passed or failed. And that assessment has not yet been made. The government must launch a full investigation of the premature disclosure of this raw data to ensure the credibility of the process is not damaged, and question the motives of those who have leaked this incomplete information. We are confident that a complete review of all the government data by respected industry experts will demonstrate that the overwhelming majority of devices tested exceeded the established standards and support LightSquared’s network.”

Results from the latest round of tests are scheduled to be presented Dec. 14. Published leaks from that report indicate that LightSquared’s equipment caused interference to 75% of GPS systems examined during testing in late October and early November.

This latest round of potential bad news for LightSquared is also reportedly tempting the company’s backer, billionaire Phil Falcone and his Harbinger Partners investment firm, could be looking at pulling the plug on the venture. Reports have noted that LightSquared could be running out of cash and that Harbinger has other items on its agenda besides continuing to fund an enterprise with little chance of success.

LightSquared’s cloudy future has not prevented the company from rapidly signing up companies to support its plans for a wholesale LTE network. The company has signed dozens of carriers looking to offer service across the network, partnered with Sprint Nextel to help roll out the network and signed logistic deals to support service and devices.

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