Nebraska LightSquared ad

Lightsquared began a nationwide media blitz this past Monday, publishing that letter in newspapers across the country.

Sanjiv Ahuja really stretches or even fabricates the truth saying things like "LightSquared began investing nearly a decade ago in the development of America's first state-of-the-art nationwide wireless broadband network" or "Despite the fact that the interference is caused by others' inappropriate use of LightSquared's licensed spectrum".

Eric Gakstatter of GPS World commented to the FCC back in August regarding the "inappropriate use" issue:

“LightSquared sells high-precision satellite data communications services to the GPS industry. Before LightSquared was formed in 2010, its predecessors (Skyterra, MSV) sold the same services to the GPS industry for many, many years. In the course of business over many, many years, LightSquared and its predecessors have encouraged GPS receiver manufacturers to design receivers that look into the MSS band (1525-1559MHz) in order to access LightSquared’s satellite data communication services. This service has generated tens of millions of dollars in revenue for LightSquared and its predecessors over many years and continues to be a revenue source for LightSquared today.

If LightSquared chooses to stop supplying satellite data communications services to the GPS industry, that’s their choice, but they should not fabricate a statement claiming that only the reason for interference in the “lower portion of its downlink band” is due to filtering technology. It’s just not true. Tens of thousands, if not hundreds of thousands, of expensive high-precision GPS receivers were specifically designed to access LightSquared’s and Inmarsat’s satellite data communications services that they sell to the GPS industry."

It seems that the only thing that is inappropriate are these comments by Sanjiv Ahuja and Lightsquared.

Part of a nationwide campaign that started on Monday

The administrator at the ORBITRAX site made the following observations on that letter -

1. The number of new jobs "promised" by LightSquared miraculously jumped from 15,000 to 75,000 in under four months.

2. The investment math is intriguing - original plans were to invest $14B, then the agreement to use Sprint's towers was to save LightSquared $13B, but the investment is still going to be $14B??

3. Since LightSquared is now planning to use Sprint's towers, their coverage will by necessity be similar (or essentially identical) to Sprint's. Sprint has never had significant coverage in rural America, so why should anyone believe LightSquared when they play the "rural coverage" card?

The writer closes with the following paragraph -

"It appears there are two sides to this story. The story being sold the US Public, and the story being sold the Investment Community/Bankers."

I hope the Journal-Star received payment in advance as LightSquared is rapidly burning through their available cash.

GB

Part of a nationwide campaign that started on Monday

1. The number of new jobs "promised" by LightSquared miraculously jumped from 15,000 to 75,000 in under four months.

They just figured out that would need to hire a bunch of surveyors to survey in their towers.:-P

How can you tell when DimCubed (LightSquared) is lying? When their mouths move or they print something.

GPS manufactures were suppose to follow the DoD requirement for equipment, oh wait, that's a lie.

They spent billions to acquire the bandwidth, oh wait the original company got it for free.

"Everyone has known for 10 years" that they were going to install these towers.

Like I said, LIARS!

Sprint, LIghtsquared partner, has been heavy on the attempts to lock down and lease every communication tower around these parts.

I've told as many locals about their agenda hoping they will lease to someone else.

I Would Say LightSquared Is About To Get A Loan Guarantee

Obama is going to pay them to put us out of business.

As we speak billions have headed out the door this week to beat today's deadline for energy projects, ala Solyndra.

Paul in PA

Just so I understand correctly, LightSquared's original plan was to provide cellphone coverage via satellite? Then they changed it to mostly satellite with some ground based cell tower augmentation? Then it became mostly cell towers, with a satellite option? Now it appears to be entirely ground based for now, and maybe satellite service in the future? And GPS manufactures were supposed to see this coming?

You're closer than you probably realize, Paul -

But the federal loan guarantees and loans may go to the companies that are contracting to use LightSquared's spectrum instead of directly to LightSquared.

As described in the ORBITRAX post of 29 September 2011, just yesterday the FCC granted a Special Temporary Authority (STA) to a company named Open Range so they could continue using the MSS S-Band spectrum leased from another company named Globalstar in a terrestrial system similar to that proposed by LightSquared.

Who is Open Range? They are a company that is working the Rural Utilities Service's (the current embodiment of the agency within the Department of Agriculture that used to be the Rural Electrification Administration - the folks that loaned money to local rural-electric cooperatives to build their electrical-distribution systems) Broadband Initiative Program. In fact, Open Range is so good at working that program that they received the largest single loan issued under that program - $200M.

Back in 2010 the FCC held Globalstar's feet to the fire and told them the terrestrial system had to be shut down because Globalstar did not meet the integrated-service rule that requires dual-mode (satellite and terrestrial) terminal devices for use by Open Range customers using the Globalstar spectrum.

This requirement for dual-mode devices is the same requirement that the FCC permanently waived for LightSquared on 26 January 2011. (Favoritism? - I don't see any favoritism!)

So by putting a significant shadow on the Open Range/Globalstar marriage and future Open Range developments in other parts of the country, the FCC essentially drove Open Range to the waiting arms of LightSquared. That hookup was announced on 11 March 2011 and was one of LightSquared's earliest major contracts for its services.

So now if the FCC blocks LightSquared's system deployment it can be plausibly argued that that decision places in jeopardy the $200M USDA loan to Open Range because many of their future projects are based on using LightSquared's MSS L-Band spectrum.

I have not investigated LightSquared's other contracts, but it is very likely that some of the parties are planning to use loans and/or loan guarantees from the USDA-RUS Broadband Initiatives Program or similar federal programs intended to extend broadband service to underserved areas.

This whole thing is a very tangled web, only a tiny part of which is being reported in the land-survey media. I am not faulting the survey publications for that - all the competing agendas here make one's head hurt!

GB

A Wedgie?

As Phil Falcone, of Harbinger (majority owner of LSQ) said right there on Fox news; the original authorizations was granted in 2004 under another administration. This plan (or should we say scheme) by Harbinger started back in 2000 when they aquired the less valuable satelite spectrum, and then began a long and careful process to try to turn that cheap spectrum into terrestrial diamond mines. They are opportunists who have contributed to and schmoozed everyone along the way. Turning this purely political plays into the hands of LSQ. If this is viewed as a wedge issue then any technical arguments will be dismissed as political. Paul, I am just as unhappy as you about the part this admin has played in this sick scheme, but let's not play into the hands of the true villians in this; the hedge fund that got rich betting agianst the ecoomic crisis. This plan should be defeated on it's own flaws and not the all-too-convenient distractions.

Open Range heading for the last roundup?

Well, that didn't take long.

FierceWireless reports today that Open Range is winding down its business.

One less wholesale customer for LightSquared.

I wonder who is going to repay the $267M in loans Open Range received from USDA-RUS?

GB