& cplSiteName &

LightSquared CEO Calls FCC 'Irresponsible'

Dan Jones
LR Mobile News Analysis
Dan Jones, Mobile Editor
2/16/2012
50%
50%

LightSquared 's CEO struck back at the Federal Communications Commission (FCC) 's decision this week to block the company's Long Term Evolution (LTE) network plan. (See FCC Moves to Block LightSquared .)

CEO Sanjiv Ahuja released a statement Thursday saying that leaving the GPS interference issue unresolved is "the height of bureaucratic irresponsibility," while stressing that the venture remains committed to finding a solution to the problem:

    After years of receiving regulatory approvals, the FCC approved LightSquared to build its ground network in 2005. In 2010, the FCC amended that plan, requiring LightSquared to build a national broadband network that reached 260 million Americans. At the government’s mandate, LightSquared began investing billions of dollars in America’s infrastructure -- without asking for any money from the American taxpayer. Yesterday, after LightSquared had already spent nearly $4 billion, the FCC changed its mind. There can be no more devastating blow to private industry and confidence in the consistency of the FCC’s decision-making process.


Philip Falcone, head of the Harbinger Capital Partners LP fund that backs LightSquared, meanwhile, is reportedly seeking a spectrum swap so that the operator can try to push its plans forward. Bloomberg is quoting sources that the billionaire is seeking a swap with the defense department.

Why this matters
Despite a seemingly fatal blow to its plans from the FCC, it is becoming clear that LightSquared is not ready to give up on its plans just yet.

For more
Light Reading Mobile has followed LightSquared's regulatory roller coaster through its many ups and downs:



— Dan Jones, Site Editor, Light Reading Mobile

(9)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
Page 1 / 2   >   >>
joset01
50%
50%
joset01,
User Rank: Light Beer
12/5/2012 | 5:42:26 PM
re: LightSquared CEO Calls FCC 'Irresponsible'


Always a good move to call out the only agency that holds any possibility (however remote) of saving your company's bacon.

kaps
50%
50%
kaps,
User Rank: Light Beer
12/5/2012 | 5:42:26 PM
re: LightSquared CEO Calls FCC 'Irresponsible'


This follows the brilliant strategy of accusing AT&T and Verizon for conspiring to get the gubmint to work against LightSquared. Whether it's true or not, by doing so you indirectly accuse Congress of being on the take. Again, not a recipe for success. But it does keep the LightSquared self-immolation streak alive.

kaps
50%
50%
kaps,
User Rank: Light Beer
12/5/2012 | 5:42:26 PM
re: LightSquared CEO Calls FCC 'Irresponsible'


This follows the brilliant strategy of accusing AT&T and Verizon for conspiring to get the gubmint to work against LightSquared. Whether it's true or not, by doing so you indirectly accuse Congress of being on the take. Again, not a recipe for success. But it does keep the LightSquared self-immolation streak alive.

joset01
50%
50%
joset01,
User Rank: Light Beer
12/5/2012 | 5:42:25 PM
re: LightSquared CEO Calls FCC 'Irresponsible'


Yep, this whole thing might be an economics/politics/technology 101 lesson in years to come.

Flook
50%
50%
Flook,
User Rank: Light Beer
12/5/2012 | 5:42:24 PM
re: LightSquared CEO Calls FCC 'Irresponsible'


I am not sure LightSquared is entirely to blame if, in fact, the FCC sent out the wrong signals, in effect stringing the company along--inadvertantly, of course. And there is this from the Washington Post: "...the company will soon have to cough up interest payments on $1.6 billion in secured loans and hundreds of millions in debt."


Still, given the compay's plan was to wholesale it services to operators that don't have the resources or do not want to take the risk of building out a national LTE network, I hope there is middle ground to work things out because, in the end, consumers will be the losers by this decision.


 


 


 

kaps
50%
50%
kaps,
User Rank: Light Beer
12/5/2012 | 5:42:23 PM
re: LightSquared CEO Calls FCC 'Irresponsible'


I don't know how much consumers are really losing out. We never, ever heard a compelling business plan from anyone involved... wholesale sounds great, but in a business where profit margins are tightening and the easy cash from voice/text is going away, a wholesale customer would have to:


1) Strike some sort of device deal to offer competitive handsets


2) Spend lots of dough on consumer marketing to explain the service


3) Figure out how to make money when it has to do the above, then figure out a payment/billing/support system AND pay LightSquared


4) and then compete against AT&T and Verizon, who could cut prices for a year or more and eat the loss in order to stave off anything truly competitive.


What wholesale brand could pull this off? I believe there are possible interesting plays out there like Wireless Republic but... hard to say anyone was harmed because this grab at spectrum didn't work out. 

kaps
50%
50%
kaps,
User Rank: Light Beer
12/5/2012 | 5:42:23 PM
re: LightSquared CEO Calls FCC 'Irresponsible'


I don't know how much consumers are really losing out. We never, ever heard a compelling business plan from anyone involved... wholesale sounds great, but in a business where profit margins are tightening and the easy cash from voice/text is going away, a wholesale customer would have to:


1) Strike some sort of device deal to offer competitive handsets


2) Spend lots of dough on consumer marketing to explain the service


3) Figure out how to make money when it has to do the above, then figure out a payment/billing/support system AND pay LightSquared


4) and then compete against AT&T and Verizon, who could cut prices for a year or more and eat the loss in order to stave off anything truly competitive.


What wholesale brand could pull this off? I believe there are possible interesting plays out there like Wireless Republic but... hard to say anyone was harmed because this grab at spectrum didn't work out. 

3screenplanet
50%
50%
3screenplanet,
User Rank: Light Beer
12/5/2012 | 5:42:19 PM
re: LightSquared CEO Calls FCC 'Irresponsible'


Sorry Kaps, the harm to consumers is that the hosejob the FCC just pulled on LightSquared discourages future private investment.  Yeah, yeah.  You think that entrepreneurs will always take a shot.  And you're right.  But the shot they'll take isn't investing in a consumer-friendly business but focusing on which FCC member or Congressman to buy off (e.g. Tom Petri - head of the Aviation Subcommittee that also shafted LightSquared).  In that case, consumer good isn't just beside the point, it's non-existent. 


Whether LightSquared had any shot at success is irrelevant.  They invested billions in private capital and got hosed by the gubmint.  If only they were bankrolled on the taxpayer dime a la Solyndra.  Then LightSquared would've had a chance.

krishanguru143
50%
50%
krishanguru143,
User Rank: Light Beer
12/5/2012 | 5:42:15 PM
re: LightSquared CEO Calls FCC 'Irresponsible'




How did the FCC string them along?  Did you actually read the CONDITIONAL waiver?  The word CONDITIONAL is a very clear sign that it is in no way the go ahead.  If you read the waiver, it laid the groundwork for what LightSquared was REQUIRED to accomplish to get approval to offer commercial services.

 

Here is part of the waiver:

"41. We agree on the need to address the potential interference concerns regarding GPS as

LightSquared moves forward with plans to deploy and commence commercial operations on its

network. 144 Further, we believe that establishing a working group that brings LightSquared and the GPS community together to address these interference issues expeditiously would serve the public interest.

 

We envision a working group in which cooperative and candid discussions can ensue, and where information, including proprietary information, can be shared among the participants with appropriate measures in place to protect the confidentiality of that information. Commission staff will work with NTIA, LightSquared, and the GPS community, including appropriate Federal agencies, to establish a working group to fully study the potential for overload interference to GPS devices and to identify any measures necessary to prevent harmful interference to GPS. As a condition of granting this waiver, the process described below addressing the interference concerns regarding GPS must be completed to the Commission’s satisfaction before LightSquared commences offering commercial service pursuant to this waiver on its L-band MSS frequencies."

 

The key part, the very last sentence.  LightSquared NEVER had approval, the FCC NEVER changed their mind.  It was LightSquared who failed to address the interference issues.  Is it the fault of the FCC that LightSquared was making these huge plans, launching a satellite, etc. in the anticipation of approval?  No, it was the fault of LightSquared.  The sole discretion was at the hands of the commission and clearly to get their approval, there could be no interference at all.  All LightSquared kept talking about was this waiver and not once did they even call it a conditional waiver.  This waiver was called a conditional waiver in it as well as by the FCC.  If LightSquared wants someone to blame, they need to look no further than themselves.




Flook
50%
50%
Flook,
User Rank: Light Beer
12/5/2012 | 5:42:12 PM
re: LightSquared CEO Calls FCC 'Irresponsible'


In which case my question is how could LightSquared have been so dumb--that includes the hedge fund that provided the company $3 billion? And was Sprint that dumb too? Some of the stuff I've been reading, e.g. Forbes, indicates that old fashioned DC politics had a lot to do with this.

Page 1 / 2   >   >>
Light Reading’s Upskill U is a FREE, interactive, online educational resource that delivers must-have education on themes that relate to the overall business transformation taking place in the communications industry.
NEXT COURSE
Wednesday, October 5, 1:00PM EDT
Gigabit & Smart Cities
Joe Kochan, COO & Co-Founder, US Ignite
UPCOMING COURSE SCHEDULE
Friday, October 7, 1:00PM EDT
Gigabit & DOCSIS 3.1
Ty Pearman, Director, Access Architecture, Comcast
Wednesday, October 19, 1:00PM EDT
Securing a Virtual World
Rita Marty, Executive Director, Mobility and Cloud Security, Chief Security Office, AT&T
Friday, October 21, 1:00PM EDT
Security: Evolving the Data Center
Rasool Kareem Irfan, Head, Telecom & Infrastructure Security Practice, Tata Communications Transformation Services Ltd (TCTS)
in association with:
From The Founder
Light Reading today starts a new voyage as part of a larger Enterprise.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
LRTV Documentaries
From Philly, With Love

9|30|16   |     |   (5) comments


Join Alan Breznick, cable's answer to the Italian Stallion, as he runs through the highlights of SCTE Cable-Tec Expo, lumbers along in Rocky Balboa's footsteps and searches for the perfect Philadelphia cheesesteak.
LRTV Interviews
CenturyLink: SD-WAN Customers Looking for Value Not Cost Savings

9|30|16   |   5:31   |   (0) comments


At NFV & Carrier SDN in Denver, CenturyLink's Eric Nowak told Light Reading that when customers launch SD-WAN, they aren't necessary looking to save money, but instead they are looking for more value from what they're spending. He also shared some unique case studies and lessons learned from launching SD-WAN services.
LRTV Custom TV
Flexible Deployment Approaches for the Gigabit Services Evolution

9|29|16   |     |   (0) comments


For many operators, the gigabit evolution begins with the shift from DOCSIS 3.0 to DOCSIS 3.1. But that move represents a change not only in the protocol itself, but in the approach to architecting their entire DOCSIS delivery chain -- from the headend to the outside plant and home gateway components.

Jonathan Ruff, senior director of global technical ...

LRTV Interviews
Level 3 VP: Enterprises Need More for Less

9|29|16   |   05:27   |   (0) comments


Andrew Dugan, Level 3 group vice president of global technology and IT, says enterprises need more bandwidth and they need it faster and with greater security, but they want to spend less, if possible. They are looking to carriers to reduce their network complexity and help protect them from cyberattacks as well.
LRTV Interviews
CenturyLink: SDN/NFV Pose New Interconnection Possibilities

9|28|16   |   04:37   |   (0) comments


Network operators should develop new APIs and business processes for reselling virtual assets to each other, says CenturyLink's Bill Walker. That will enable them to build digital business portfolios that help them avoid becoming commodity transport providers.
LRTV Interviews
Level 3: Overcoming Terror of Being Supplier, Integrator & Developer

9|28|16   |     |   (0) comments


At Light Reading's NFV & Carrier SDN event in Denver, Travis Ewert of Level 3 Communications said there is terror in becoming supplier, integrator and developer, but it can be overcome and be cost effective.
LRTV Custom TV
Introducing IoT World News

9|27|16   |   01:43   |   (0) comments


Self-driving cars, medical sensors, smart cities... and refrigerators. In order to address the huge scope of IoT, KNect365 has created a unique online community that will help businesses to understand and monetize the opportunities that live within the IoT market. We look forward to welcoming you to IoT World News -- your gateway to a better connected future.
LRTV Interviews
AT&T: Reusable Functions Next NFV Key

9|27|16   |   06:03   |   (0) comments


The next generation of NFV has to break functions down into reusable software chunks, making everything much more cloud-like.
LRTV Interviews
Masergy on Security: Attackers Gaining Upper Hand

9|27|16   |   5:10   |   (2) comments


At Light Reading's NFV & Carrier SDN event in Denver, Ray Watson, vice president of Global Technology at Masergy, says that because of the growth in virtualization, the threat landscape is shifting in favor of the attackers. As a result, service providers need to think beyond just defending the perimeter and take a more holistic approach to security.
LRTV Interviews
Verizon Takes Next Step on Biz Virtualization Journey

9|26|16   |   4:38   |   (2) comments


At September's NFV & Carrier SDN event in Denver, Light Reading sat down with Victoria Lonker, director of Product and New Business Innovation at Verizon, to chat about where the carrier is with delivering virtualized services to business customers.
LRTV Interviews
Global Services: The $40B Face-Off

9|26|16   |   05:53   |   (1) comment


More service providers than ever before are battling it out to win a slice of what is now a $40 billion global communications services pie, explains Ovum Principal Analyst David Molony.
LRTV Documentaries
MEC Congress: The Key Takeaways

9|22|16   |   03:25   |   (3) comments


Three key takeaways from the Mobile Edge Computing (MEC) Congress in Munich, Germany.
Upcoming Live Events
November 3, 2016, The Montcalm Marble Arch, London
November 30, 2016, The Westin Times Square, New York City
December 1, 2016, The Westin Times Square, New York, NY
December 6-8, 2016, The Westin Excelsior, Rome
May 16-17, 2017, Austin Convention Center, Austin, TX
All Upcoming Live Events
Infographics
Hot Topics
AT&T CEO Backs Black Lives Matter
Dan Jones, Mobile Editor, 9/30/2016
Eurobites: Telefónica Taps Juniper for Network Security
Paul Rainford, Assistant Editor, Europe, 9/26/2016
Powell Kills the Cable Show
Mari Silbey, Senior Editor, Cable/Video, 9/29/2016
Telstra Sees Quadrupled Data Capacity by 2020
Carol Wilson, Editor-at-large, 9/28/2016
From Philly, With Love
Alan Breznick, Cable/Video Practice Leader, Light Reading, 9/30/2016
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
Light Reading CEO Steve Saunders and UXP Systems CEO Gemini Waghmare discuss the strategic importance of digital identity for operators in the midst of transformation.
Join us for an in-depth interview between Steve Saunders of Light Reading and Alexis Black Bjorlin of Intel as they discuss the release of the company's Silicon Photonics platform, its performance, long-term prospects, customer expectations and much more.
Animals with Phones
There's Nothing Like Missing a Full Minute of Pokémon Go Click Here
Live Digital Audio

A vital part of increasing the number of women in comms is transforming the ways companies can support and empower women. While progressive company policies that support both men and women in achieving work-life balance are a step in the right direction, creating a company culture that supports those policies can at times be more challenging.

During this show, we'll talk to Lynn Comp, Senior Director of Industry and Sales Enabling (ISE) in the Network Platforms Group at Intel, about why those challenges exist and how companies can overcome them. She'll provide insight into how Intel has worked to create a culture that supports work-life balance, and provide steps and guidance for other companies wishing to do the same. We will also leave plenty of time to get your questions answered live on the air.