Leaked draft shows LightSquared’s network interferes with ‘great majority’ of GPS receivers, company pushes back

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Leaked draft shows LightSquared's network interferes with 'great majority' of GPS receivers, company pushes backSome more bad news for Phil Falcone  of Harbinger Capital.


According to leaked reports from government test drafts, LightSquared’s technology causes “harmful interference” to the majority of GPS receivers. Addressing the allegations, LightSquared called the conclusions “patently false.” It added, “We are outraged by the illegal leak of incomplete government data to news organizations. This breach attempts to draw an inaccurate conclusion to negatively influence the future of LightSquared and narrowly serve the business interests of the GPS industry.” The company believes tests are inconclusive because they were completed at power levels up to 15 times higher than those that would be used in practice. By ignoring its commitment to work at a lower level to minimize interference, the company believes the conclusions are erroneous. It’s important to note, however, that the NTIA will make the final determination about how many devices passed or failed, rather than the documents makers. And that assessment has not yet been made. Despite the ongoing dispute, the company has already managed to secure 30 partners ranging from Sprint to Best Buy, all hoping to cash in on a promised $7 per gigabyte price point. The FCC has given LightSquared the go-ahead to build the network, but will not allow for activation until approving the final round of government testing.

Bloomberg WSJ


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