& 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   >   >>
From The Founder
Download our complete guide to de-risking NFV deployment in 2016, including:
  • An eight-step strategy to deploying NFV safely, based on input from the companies that have already started virtualizing their production networks.
  • Interviews with leading executives at Colt, AT&T, Deutsche Telekom, Cisco, Nokia, ZTE, Ericsson and Heavy Reading.
  • Flash Poll
    Live Streaming Video
    Prepping for the Future: Upskill U Explained
    During this short kick-off video, Doug Webster, Vice President of Service Provider Marketing, Cisco, and Light Reading’s CEO & Founder Steve Saunders give an overview of Upskill U.
    LRTV Interviews
    AT&T Expert on the Key Pillars of UC

    4|29|16   |   03:58   |   (0) comments


    Vishy Gopalakrishnan, AVP of product marketing at AT&T, talks about the three developments that are making unified communications and collaboration secure and reliable for enterprise users.
    LRTV Documentaries
    LRTV Report: Mobile Core Innovation

    4|28|16   |   25:32   |   (0) comments


    Hear from multiple industry experts from Deutsche Telekom, SK Telecom, Heavy Reading, Huawei, Cisco, Ericsson, Nokia, NEC and many more about developments in the mobile core as operators virtualize their IMS and evolved packet core systems and prepare for a 5G world.
    LRTV Huawei Video Resource Center
    NFV World Congress Highlight

    4|26|16   |     |   (0) comments


    The highlight of the NFV World Congress contains exciting telecom news. Join us for an inside look at Huawei's ICT 2020 plan and its latest collaboration with industry leaders.
    LRTV Interviews
    Unified Comms Finds Its Voice

    4|25|16   |   03:44   |   (0) comments


    Peter Quinlan, VP of UCC Product Management at Tata Communications, talks about the evolution of the unified communications and collaboration services sector and how voice is now a big part of current developments.
    LRTV Documentaries
    So... What Do We Do Now?

    4|25|16   |   03:24   |   (0) comments


    After a long hiatus, Max Dingman, the CEO of a GeeGhiz, returns for a motivational board room pep talk.
    LRTV Documentaries
    NAB 2016 Highlights

    4|21|16   |     |   (0) comments


    Light Reading's Cable/Video Practice Leader Alan Breznick climbs down from the slots to tell us about the latest news in broadcast technology at NAB 2016 in Las Vegas.
    Between the CEOs
    CEO Chat: Deepfield's Craig Labovitz

    4|21|16   |     |   (0) comments


    In this latest installment of the CEO Chat series, Craig Labovitz, co-founder and CEO of Deepfield, sits down with Light Reading's Steve Saunders in Light Reading's New York City office to discuss how Deepfield fits in with the big data trend and more.
    Shades of Ray
    Leading Lights 2016: Shortlists Announced

    4|20|16   |   0:53   |   (0) comments


    The judging is over and the Leading Lights 2016 shortlists have been published -- you can see who made the cut by clicking on this link.
    LRTV Custom TV
    Introducing MulteFire – Qualcomm at MWC 2016

    4|18|16   |   3.29   |   (0) comments


    MulteFire is the latest option for using LTE in unlicensed spectrum. As oppose to its close 'siblings', LAA and LTE-U, MulteFire operates solely in unlicensed spectrum, which enables it to offer the best of two worlds – LTE-like performance with WiFi-like deployment simplicity. In this interview, Sanjeev Athalye, Sr. Director, Product Management at Qualcomm ...
    Between the CEOs
    CEO Chat: Grant Van Rooyen of Cologix

    4|18|16   |     |   (0) comments


    Grant van Rooyen, president and CEO of Cologix, sits down with Steve Saunders, founder and CEO of Light Reading, in the vendor's New Jersey facility to offer an inside look at the company's success story and discuss the importance of security in the telecom industry.
    LRTV Huawei Video Resource Center
    ONS 2016 – Demonstration of Huawei's NetMatrix Multi-Vendor SDN Orchestrator

    4|15|16   |     |   (0) comments


    This demonstration shows how Huawei's NetMatrix SDN Orchestrator (SDN-O) addresses an operator's core service agility needs for services spanning multi-domain, multivendor networks: it includes a demonstration of:
    - Rapid New Service Design: using YANG to model a complex example of multi-domain, multivendor L3VPN network connectivity service that ...
    LRTV Custom TV
    AT&T Wants to Own North Carolina

    4|15|16   |     |   (1) comment


    Venessa Harrison, president of North Carolina for AT&T, tells how the company will expand its GigaPower service beyond the seven N.C. cities it already serves.

  • This blog, sponsored by AT&T, is the second part of a ten-part series examining next-generation broadband technologies titled "Behind the Speeds."
  • Upcoming Live Events
    May 23, 2016, Austin, TX
    May 23, 2016, Austin Convention Center
    May 24-25, 2016, Austin Convention Center, Austin, TX
    September 13-14, 2016, The Curtis Hotel, Denver, CO
    December 6-8, 2016,
    June 16-18, 2017, Austin Convention Center, Austin, TX
    All Upcoming Live Events
    Infographics
    A new survey conducted by Heavy Reading and TM Forum shows that CSPs around the world see the move to digital operations as a necessary part of their overall virtualization strategies.
    Hot Topics
    Ultra-Broadband Summit, Hong Kong
    Iain Morris, News Editor, 4/27/2016
    WiCipedia: Woman Cards & Bitch Switches
    Sarah Thomas, Director, Women in Comms, 4/29/2016
    Mitel Asks: What Time of Day Do You Shower?
    Mitch Wagner, West Coast Bureau Chief, Light Reading, 4/25/2016
    GoT Fans Curse HBO (Not Right) Now
    Mari Silbey, Senior Editor, Cable/Video, 4/25/2016
    Charter Jumps Gun on TWC Restructuring
    Mari Silbey, Senior Editor, Cable/Video, 4/26/2016
    Like Us on Facebook
    Twitter Feed
    BETWEEN THE CEOs - Executive Interviews
    In this latest installment of the CEO Chat series, Craig Labovitz, co-founder and CEO of Deepfield, sits down with Light Reading's Steve Saunders in Light Reading's New York City office to discuss how Deepfield fits in with the big data trend and more.
    Grant van Rooyen, president and CEO of Cologix, sits down with Steve Saunders, founder and CEO of Light Reading, in the vendor's New Jersey facility to offer an inside look at the company's success story and discuss the importance of security in the telecom industry.
    Animals with Phones
    Live Digital Audio

    Of all the tech companies in the Valley, Intel has made the most aggressive commitment to building a diverse and inclusive workplace culture. It's doing so by taking concrete, measurable steps, making a large financial investment and through a commitment to complete transparency about its progress. In this radio show, WiC Director Sarah Thomas will be joined by Shlomit Weiss, Intel's Vice President, Data Center Group, and General Manager of Networking Engineering, who will share with us why Intel is tackling this huge challenge, how and to what effect. She will also discuss her unique experiences leading development of Client SOC development in the past and today leading development of all of the chipmaker's silicon hardware for networking IPs and discrete devices and managing a team of 600 engineers across Israel, Europe and the US.