Government Agencies Blast LightSquared

LightSquared 's proposed LTE network cannot coexist peacefully with GPS, period, according to nine government agencies.

Known collectively as the Space-Based Positioning, Navigation and Timing committee, they delivered a letter to that effect to the U.S. Department of Commerce on Friday evening.

Referring to test results, including some from the Federal Aviation Administration, the agencies have concluded that LightSquared's network would interfere with GPS receivers. That's even after LightSquared's proposed signal modifications are taken into account.

In return, a LightSquared statement blasted the agencies Friday, claiming their actions "have demonstrated bias and inappropriate collusion with the private sector." In particular, the would-be 4G wholesale provider claimed that the committee dropped plans to test high-precision GPS filters, indicating a willingness to put "private sector interests ahead of their public responsibilities." Why this matters
They're fu... Er, rather, it's looking quite bad for LightSquared. The government black marks are mounting up, with powerful forces like the Department of Defense seemingly arrayed against the well-funded Harbinger Capital Partners LP -backed venture.

The operator is also under time pressure as network partner Sprint Corp. (NYSE: S) gave it until the end of the month to square away the GPS issue with the Federal Communications Commission (FCC) . That deadline is looming with no resolution in sight.

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