NTIA Finds 95 MHz of Spectrum for wireless proposes shaing!

The headline above appeared this week in Fierce Wireless.  On the surface this is great news for wireless users, particularly for carriers who need more spectrum to expand networks, and especially for LightSquared.  You all remember LightSquared, backed by Obama support Phillip Falcone and who is threading to sue the pants off the taxpayers to recover Mr. Falcone's $3 billion investment.  Do not be surprised to hear in coming months, that LightSquared has been . . . "awarded access to 30 MHz nationwide, of the 95 MHz freed up at taxpayer expense, by NTIA"!  Of course that will make Mr. Falcone's invest worth $30 billion again and position him to funnel even more campaign contributions to the re-election campaigns of politicians who, "understand the value of bringing broadband service to more American's thus taking a step closer to closing the ever growing "broadband divide".

Of course, as I sometimes do, I digress.  It really is good news for all users that NTIA is at least "mining" some spectrum.  But I caution all non-carrier, non-public safety users, DO NOT GET EXCITED about this press release by NTIA because as NTIA points out, "One of the issues the NTIA identified in moving federal users out of the spectrum is that, given the growing demand for spectrum by both industry and the federal agencies, it is increasingly tough to find spectrum to move from and into.

Additionally, the NTIA said its analysis of the cost of a complete relocation of the 95 MHz raises questions as to whether the proceeds from auctioning the spectrum will exceed federal relocation costs, as required by law. The NTIA also said that some of the federal systems in this band may require more than a decade to relocate, which could further complicate deployment of commercial wireless broadband."

So our council is to go forward keeping an eye on the spectrum, which L&W will do for our clients, and be ready to move quickly if and when there is something more than press release about spectrum put forth by NTIA.

Marc

Harbinger, LightSquared face investor lawsuit, $56M payment

Well it looks like troubles continue to mount for Harbinger Capital!

Last Friday, on an investor call, Phillip Falcone said, "While it is clear that the investment thesis was dead-on, going through the regulatory and political process here has been very disturbing, to say the least," Falcone said, according to the Wall Street Journal. "We are continuing to plow ahead on a number of different fronts. ... We are continuing to evaluate a number of the options we believe we have."

So let's just examine those two statements individually,  "While it is clear that the investment thesis was dead-on, going through the regulatory and political process here has been very disturbing, to say the least"  Reading this can't you imagine a White Star Line press release on April 15, 1912 saying that the maiden voyage of the Titanic was, except for that unfortunate event with that iceberg, superbly successful.  

"We are continuing to plow ahead on a number of different fronts. ... We are continuing to evaluate a number of the options we believe we have." which is clearly akin to Captain Smith on the Titanic  announcing to the passengers, "Ladies and gentlemen pay no attention to that ice on the deck, it is part of our North Atlantic cruise entertainment, please just enjoy the rest of your voyage, and by the way, drinks are on the White Star line for the rest of the trip! 

On Friday, Harbinger was sued by investors in the fund who claimed that they were misled over the "all in" investment Harbinger made in LightSquared, which has totaled more than $3 billion. Harbinger and its chief Philip Falcone "knew from the outset, or were reckless in failing to know, that LightSquared's technology interfered with GPS systems," according to the suit. The suit claims that because of LightSquared's status now, investors "stand to lose substantially all of the value of their investments." Harbinger declined to comment on the suit.

I believe that the investors are correct, do I believe they will recover their investment, not a chance!

Time will tell!

Marc

The LightSquared Whine Continues as the Commission suspends their waiver to use the 1.6 GHz band

After a very long and very public battle the Federal Communications Commission finally agreed that the laws of physics indeed could not be repealed, even with Obama's magical powers, and notified LightSquared that their waiver to use the 1.6 GHz spectrum will be suspended indefinitely thus ending LightSquared's plan to build a wholesale terrestrial based LTE network in the 1.6 GHz band. 


The surprise in this announcement is that the Commission actually did the right thing and went against the political pressure of LightSquared.   


But don't think that just because the FCC has ruled that this is the last you will hear from LightSquared.  Within hours of the announcement by the Commission, LightSquared launched their,  "we have been a victim of pure politics" campaign.    


Jeff Carlisle, LightSquared’s executive vice president for regulatory affairs and public policy, wrote on the company’s blog this week that the GPS industry had apparently become “too big to fail,” seeking protection from the federal government for its own mistakes.

“GPS manufacturers have been selling devices that listen into frequencies outside of their assigned spectrum band — namely into LightSquared’s licensed band,” Mr. Carlisle wrote. “The GPS industry has leveraged years of insider relationships and massive lobbying dollars to make sure that they don’t have to fix the problem they created.”

LightSquared's whine continued threatening legal acton and ramping up its lobbying efforts to attempt to gain access to spectrum for their network through a spectrum swap with federal agencies.  

The saga continues but never underestimate the power of having powerful friends (the President of the United States) as an investor in your company trying to make a $20 + billion spectrum play!  

Marc

"ITS A CRISIS SOMEONE IS GOING TO DIE IF WE DON'T ACT NOW!

Apparently LightSquared lobbyists have been unsuccessful in getting the laws of physics repealed, and have now shifted to the "Its a crisis, someone is going to die if we don't act now" tactic to attempt to entice the FCC to rule in their favor.

In an article in Urgent Communications Jeff Carlisle, LightSquared’s executive vice president for regulatory affairs and public policy, warned the public safety industry,  “The satellite company, in and of itself, is not sustainable over the long term — we know that,” Carlisle said. “It’s too small of a market to support the capital investment needed to launch a new satellite every 15 years. This is why you see a lot of satellite companies that have gone through restructuring.”  he then goes on to warn, "As long as we have a viable business, we will always be committed to our public-safety solutions,” . . . “We’ve got cutting-edge technology that nobody else has, and we’ll continue to be committed to that. Hopefully, we’ll be able to find our way through this thicket and make sure that this capability will be provided into the future.”  One presumes that Carlisle was referring to the push to talk satellite service that public safety agencies sometimes depend on, but but if you carefully read Carlisle's comments I am not sure that is what he means at all.


But none the less, the message is clear, LightSquared is clearly using the "ITS A CRISIS someone is going to die if we don't act now" tactic in an attempt to coerce the public safety industry and their unions to lobby for LightSquared.  


In reality, LightSquared has lost the technical argument (the facts), lost the legal argument, and has now entered the speak loudly an forcefully part of their campaign to get their spectrum repurposed!


I know LightSquared doesn't particularly like to answer practical questions about its network deployment but here are two questions, relative to the push to talk satellite argument they are now making, I am posing  to LightSquared:


1. How is the low powered push to talk satellite system used by public safety going to co-exist in a high powered (relatively) terrestrial based LTE network, without having those pesky laws of physic's repealed?


2.  When LightSquared's terrestrial network is fully deployed and operational why would LightSquared continue to invest millions every 15 years to launch a new satellite to support a market that LightSquared has admitted is ". . . too small of a market to support the capital investment needed to launch a new satellite every 15 years."? 


Marc

LightSquared poised to lobby for the Obama Administration to repeal selected the laws of physics!

From today's addition of Fierce Wireless,

LightSquared, whose principal investor is a very large Democratic Party supporter, has once again had the door shut on their plan to re-purpose spectrum allocated for satellite communications into a nationwide wholesale network, when yet another study group has concluded that the laws of physics do apply and  that the network, if it were ever to be built, would essential destroy the effective use of GPS in the United States.

It has been rumored however that the LightSquared lobbyists have a proposal ready for Congressional action that will appeal the laws of physics that are apparently stopping LightSquared's system roll out!  An unnamed source has indicated that Democrats in Congress are ready to fast track this legislation and the President, an investor in LightSquared, will sign it into law as soon as it hits his desk.

Marc

 LightSquared faces new roadblock after U.S. study finds GPS interference

By Phil Goldstein

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Wholesale LTE provider LightSquared faces new challenges to its plans to deploy its network after a federal advisory panel said on Friday that LightSquared's proposed network continues to interfere with GPS receivers and that no further testing is needed as a result. However, LightSquared sharply criticized the advisory board's work as "unfair and shrouded from the public eye" and threatened potential litigation over the issue. In a letter to the sent to Lawrence Strickling, head of the National Telecommunications and Information Administration, which is conducting tests of LightSquared's network, the National Space-Based Position, Navigation, and Timing Advisory Board said that testing of both LightSquared's original network plans and subsequent modifications show that LightSquared's proposed terrestrial network still presents harmful interference to GPS receivers. The panel advises the federal government on GPS issues. "There appear to be no practical solutions or mitigations that would permit the LightSquared broadband service, as proposed, to operate in the next few months or years without significantly interfering with GPS," Ashton Carter, deputy secretary of defense, and John Porcari, deputy secretary of transportation, wrote in the letter. "As a result, no additional testing is warranted at this time." The decision of the advisory panel is not binding, and the NTIA is still conducting its own analysis. The NTIA said the panel's recommendation with "help inform" its decision before it makes its recommendations to the FCC. LightSquared blasted the advisory panel as being too close to the GPS industry and for not testing filtering solutions proposed by LightSquared to mitigate GPS interference. "LightSquared today urges the government, under the leadership of the FCC and NTIA to recommit to a fair and transparent process," Terry Neal, a LightSquared spokesman, said in a statement. "Test results must be re-evaluated by unbiased officials and engineers. Testing must proceed in cooperation with all parties--LightSquared, government end-users, and GPS manufacturers--to ensure effective and appropriate guidelines are in place." Meanwhile, while LightSquared's network sits in regulatory limbo, the company keeps on signing up wholesale customers. LightSquared inked a wholesale deal with Hometown Telecom, a carrier specializing in low-cost long distance calls to India. The deal is LightSquared's 37th wholesale agreement.

LightSquared in a panic based on PNT Board Recommendation

Looks as if LightSquared has decided that since the science is against them on the interference issue with GPS receivers they will now argue "conflict of interest" about one member on the PNT Advisory board.  I suppose the old adage from the legal community that goes, "if the facts are against, you argue the law, if the law is against you, speak loudly and forcefully!  It seems that the LightSquared folks will be raising their voice very soon!  Notice that the article does not mention the fact that the LightSquared Chairman happens to have very close ties with and raised funds for the election of the current President.

Marc
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1. LightSquared urges probe of GPS advisory board member

By Phil Goldstein

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Wholesale LTE provider LightSquared is urging a probe of a federal GPS advisory board member, arguing that he has a conflict of interest because he also serves on the board of Trimble, which is opposed to LightSquared's network deployment plans. LightSquared filed a petition late Wednesday with NASA Inspector General Paul Martin over the board member, Bradford Parkinson, sometimes referred to as the "father of GPS" for his role in developing the technology for the military. Parkinson serves as the vice chairman of the National Space-Based Position, Navigation, and Timing Advisory Board, which advises the federal government on GPS issues, and also serves as a board member for Trimble, which is part of a coalition of companies that have argued LightSquared's terrestrial network would cause harmful interference to GPS receivers. In December, results of GPS testing conducted by the advisory board were leaked to the media and showed continued interference from LightSquared's network.  In its petition, LightSquared said Parkinson may have violated federal conflict of interest rules, and argued that if LightSquared's network deployment is approved by regulators, Trimble could be hurt financially because the company would need "to address the problematic design and manufacturing process that has resulted in its high-precision receivers looking into LightSquared's spectrum." Trimble is part of a group formed last March called the Coalition to Save Our GPS, which has argued that LightSquared's network will cause harmful interference and that its signal will overwhelm GPS receivers and precision-based GPS receivers in particular. LightSquared has repeatedly argued that GPS device makers are at fault because their receivers have been designed to look into LightSquared's L-band spectrum. Government testing conducted under the auspices of the National Telecommunications and Information Administration is still ongoing to determine if all GPS interference concerns have been resolved. Coalition spokesman Dale Leibach told Reuters that Parkinson's role as a GPS expert allowed him to serve at both the advisory board and Trimble. "It appears that LightSquared has now run out of solutions and has nothing left but baseless allegations about process," Leibach said. Pressure is mounting on LightSquared to get approval from regulators at the NTIA and FCC. Last week Philip Falcone, the head of the hedge fund Harbinger Capital Partners, which is the chief backer of LightSquared, met with FCC officials to press the company's case and argue for its plans to mitigate interference. Sprint Nextel (NYSE:S) has given LightSquared an extension until Jan. 31 to get FCC approval for its network, a condition of their 15-year, $9 billion network-hosting deal. However, Sprint has quit installing LightSquared equipment into its Network Vision network upgrade due to the situation. Meanwhile, Sen. Charles Grassley (R-Iowa) said he is requesting information from GPS companies about their contacts with the White House and regulators. The requests for information are part of a deal Grassley struck to get the FCC to turn over similar info about LightSquared's dealings with the government. Grassley has been investigating the conditional waiver the FCC granted LightSquared in January 2011 to allow its wholesale customers to deploy terrestrial service.

You heard it here first!

Despite the overwhelming evidence that LightSquared does cause interference with GPS receivers, I believe LightSquared will get conditional approval to move forward with its network, not because it has solved the interference issue, but because LightSquared is very well connected politically.  The fix is in to allow LightSquared to move forward, but not to worry about the interference, I also predict that LightSquared's network will never actually be built out as planned! 

Marc

Defense bill stacks deck against LightSquared

By Dan O'Shea

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LightSquared may be breathing a bit easier after getting a 30-day extension from Sprint on the deadline to meet the conditions of its LTE partnership with the mobile carrier giant, but eWeek reports that the controversial defense bill signed into law by President Obama just last week may further stack the deck against LightSquared. The National Defense Authorization Act of 2012, signed by President Obama on New Year's Eve, is drawing much more attention for its support of indefinite detainment of terror suspects, but it also includes language that applies to the LightSquared situation. As eWeek explains, a portion of the Space Activities section of the bill indicates that the Federal Communications Commission can't allow commercial terrestrial operations that interfere with the military use of GPS, unless the FCC can prove to Congress that any concerns have been resolved. If interference is found, as it has been in initial tests involving LightSquared's spectrum-though these tests didn't involve military-related satellite receivers--the Secretary of Defense must get involved to assess the interference and report back to Congress on how it will eliminated. At a time when the industry appears increasingly worried about its limited spectrum holdings, it's starting to seem like LightSquared's L-band spectrum doesn't have all that much value--or at least may not be worth the additional trouble. Maybe that's what Sprint is thinking, too. Suddenly, 30 days doesn't seem all that long of an extension, given what LightSquared needs to overcome, and not just at the FCC. It seems unlikely that Sprint was aware of the NDAA language before it let LightSquared have more time, not that waiting another 30 days really affects its LTE plans.