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LightSquared seeks FCC action on GPS interference issue

With time now being a significant factor, LightSquared has filed comments with the Federal Communications Commission asking that the government agency develop receiver standards for unlicensed GPS devices. This issue has plagued the company, which has yet to gain access to its 1.6 GHz spectrum assets due to interference issues from GPS devices broadcasting outside of their spectrum bands and into LightSquared’s holdings.

In its filing, LightSquared’s notes that market forces have not been enough to ensure that GPS device makers produce equipment that does not stray outside of its bounds and thus government action is required. In a last-minute conference call with reporters, which has become a habit for LightSquared, the company noted that while the move would seem to be selfish in light of its current struggles, it is also an issue that if left unchecked could impact all spectrum holders.

LightSquared has been on the wrong end of numerous tests that have showed potential interference with GPS equipment should the company launch wireless services. Sprint Nextel, which signed on last year to host LightSquared’s spectrum through its Network Vision initiative, has provided a pair of extensions for LightSquared to find a solution to its GPS issue, that last of which is set to run through mid-March.

LightSquared is also facing a potential fiscal deadline as reports have indicated that the company’s financial backer, billionaire Phil Falcone and his Harbinger Partners investment firm, could be looking at pulling the plug on the venture. LightSquared has repeatedly stated that it currently has enough cash to support operations for several quarters.

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