LightSquared Files for Chapter 11

LightSquared filed for Chapter 11 bankruptcy Monday just over a month after the founder of the wireless broadband wholesale company floated the idea.

LightSquared's founder, Harbinger Capital Partners LP CEO Philip Falcone, had been trying to strike a deal with lenders that would keep the company afloat. An agreement couldn't be reached, however, and the operator filed for Chapter 11 protection.

Why this matters
The move to bankruptcy is hardly a surprise as the company had few options after the Federal Communications Commission (FCC) blocked its plan for an Long Term Evolution (LTE) in satellite spectrum because of GPS interference concerns. The arch of LightSquared's progress, however, throws into question just how the government can promote the deployment of mobile broadband in the U.S. and whether the wholesale model is viable for other operators like Dish Network LLC (Nasdaq: DISH) (See Dish Snaps Up Some LightSquared Debt .)

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— Dan Jones, Site Editor, Light Reading Mobile

gtchavan 12/5/2012 | 5:33:05 PM
re: LightSquared Files for Chapter 11

Lets face it this spectrum schmectrum gargabage was just a ploy for these Telco's not to invest in their network.  This is another failed venture that solely based on spectrum.  Hopefully this puts a nail in spectrum schmectrum garbage for all telco's.  They need to invest in small cells and quadruple the size of their networks to meet the data demand.  It is not like there is no business model and the cost of installing small cells is not only the lowest, it is also incremental.  Just do it and support your network suppliers by buying hardwawre. 

ppfautz 12/5/2012 | 5:33:03 PM
re: LightSquared Files for Chapter 11

Not sure it's quite so simple when you consider the backhaul issues and the other deployment issues. Outside plant is nasty with permitting and everything else.

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