Feeds

LightSquared faces regulator glare

While investors go dark

Providing a secure and efficient Helpdesk

LightSquared is in a tight spot, with investors getting cold feet and regulators demanding assurance on how far the company intends to bend the rules.

LightSquared is the pipe dream of Harbinger Capital Partners founder Phil Falcone, and is still funded by Harbinger. The plan is to use radio spectrum reserved for satellite communications to connect mobile phones instead, using billions of dollars from investors to build a wholesale 4G network covering the USA.

The spectrum LightSquared wants to use is supposed to be ancillary to satellite services (in the UK we call it "complementary") to fill in places the satellite can't reach such as between buildings or inside them. But LightSquared wants to take that further, making the satellite ancillary to a traditional network - it reckons that only 0.0005 per cent of its traffic will be carried over the satellite, which is what has got the National Telecommunications and Information Administration (NTIA) so upset.

The FCC has relaxed the rules on spectrum usage, which is going to create some interesting opportunities for other satellite operators too, as Daily Wireless lists, but the NTIA reckons it's been too quick in changing the rules and has written to the FCC (pdf) calling for further investigation.

The American GPS system is on a nearby frequency, and very low power, so there is potential for interference. More telling is the NTIA's stated concerns about how LightSquared's customers interpret the rules which require the operator to keep offering a satellite service.

LightSquared has no intention of selling any kind of service direct to consumers; it will give wholesale access to providers who'll be responsible for dealing with the customers. The NTIA wants to know if those customers will have the same responsibilities as the wholesaler: "If it does not require dual-mode handsets, LightSquared's wholesale customers will have the ability to offer terrestrial only plans to their own end users."

Quite how that leads to greater interference isn't clear, given the tiny proportion of traffic that's destined to be carried by satellite; but it would really annoy LightSquared's competitors (the incumbent networks) who paid top dollar for their spectrum unencumbered by satellite requirements.

Not that LightSquared has much of a network yet. It launched its first bird in November and has signed a deal with Nokia Siemens for the network infrastructure, but it's still well short of the $7bn it needs to build the network; which is just about what Reuters reports is left in the Harbinger kitty thanks to some high-profile defections.

Harbinger was apparently handling $26bn at one point, but that has shrunk to $7bn and the fund has lost three of its star traders in the last few weeks. Reuters speculates that's down to the fund having more than 40 per cent of its holdings invested in LightSquared - which isn't what hedge funds do, as we understand them.

None of which is good news for what must be one of the most audacious wireless plans ever conceived, and for that reason alone we'd love to see it succeed, even if it is against all odds. ®

Protecting against web application threats using SSL

More from The Register

next story
Brit telcos warn Scots that voting Yes could lead to HEFTY bills
BT and Co: Independence vote likely to mean 'increased costs'
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
New 'Cosmos' browser surfs the net by TXT alone
No data plan? No WiFi? No worries ... except sluggish download speed
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Blockbuster book lays out the first 20 years of the Smartphone Wars
Symbian's David Wood bares all. Not for the faint hearted
Bonking with Apple has POUNDED mobe operators' wallets
... into submission. Weve squeals, ditches payment plans
This flashlight app requires: Your contacts list, identity, access to your camera...
Who us, dodgy? Vast majority of mobile apps fail privacy test
Apple Watch will CONQUER smartwatch world – analysts
After Applelocalypse, other wristputers will get stuck in
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
Security and trust: The backbone of doing business over the internet
Explores the current state of website security and the contributions Symantec is making to help organizations protect critical data and build trust with customers.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.