NTIA scrutinizes LightSquared 'terrestrial-only' proposal: Funding concerns arise amid Harbinger departures

The National Telecommunications and Information Administration said it is concerned that LightSquared’s proposal to sell wholesale terrestrial-only services could cause interference to navigation and E-911 systems. The agency said the situation must be assessed before any other action is taken.
LightSquared is authorized to build a hybrid network using satellite and terrestrial-based communications system using MSS spectrum. However, LightSquared is seeking a waiver that would allow its wholesale customers to offer terrestrial-only services. NTIA is concerned that ATC (ancillary terrestrial services) operations in the MSS band could cause interference. Specifically, NTIA is concerned that too many terrestrial-based devices operating in the MSS band could cause interference to GPS timing receivers, aeronautical communications and Inmarsat Inc.’s mobile satellite service, which is used by the Department of Defense.
“NTIA understood the original construct of MSS/ATC operations to be that they would operate as ‘satellite first/terrestrial second’ systems. However, the many modifications, rule changes and waivers since the FCC adopted rules in 2003 to allow MSS/ATC more flexibility increase the risk of interference with existing services,” NTIA said. “Thus far we have moved forward allowing development of ATC systems compatible with federal systems maximizing the use of the MSS spectrum. While NTIA has not previously contemplated the impacts of the introduction of terrestrial-only handsets in this band, we are willing to work with all of those involved so that federal operations are protected while allowing MSS/ATC flexibility.”
LightSquared’s planned network buildout is scheduled to include a 40,000-cell site terrestrial LTE network being deployed by Nokia Siemens Networks that will cover around 90% of the population of the United States, while the satellite component that will provide for 100% coverage.
However, the company could face funding shortages. The company has raised about $2 billion to date. Reuters is reporting that Harbinger Capital Partners, which is funding LightSquared, has let some employees go as it attempts to right-size the company. The Harbinger fund now is valued at about $7 billion, a steep drop from the $26 billion it once counted.