LightSquared declares bankruptcy after GPS worries sank its mobile dream

The carrier is moving toward restructuring, but its existing satellite service continues

LightSquared, the startup that planned a nationwide wholesale mobile network only to be shot down by regulators because of GPS interference concerns, is declaring bankruptcy.

The move came after lengthy negotiations with lenders and does not shut down the company's only commercial operation, a satellite-based mobile service. The bankruptcy is expected to give Philip Falcone, the hedge-fund chief who built LightSquared out of two satellite acquisitions, several months of control over how the company addresses its troubles.

LightSquared wanted to run an LTE mobile broadband network using frequencies next to those used by GPS, which historically had been reserved for satellite service. Part of the promise of LightSquared was the prospect of a wholesale-only provider of LTE capacity to both large and small mobile operators, potentially making the high-speed mobile business in the U.S. more competitive.

However, in February, the FCC said it would kill LightSquared's planned network because it would interfere with GPS receivers. As a result, LightSquared's main asset, its spectrum, has little value unless the company can reach another deal with the agency that would give it other spectrum to work with.

Documents detailing the bankruptcy are expected to be released later Monday.

Stephen Lawson covers mobile, storage and networking technologies for The IDG News Service. Follow Stephen on Twitter at @sdlawsonmedia. Stephen's e-mail address is

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Stephen Lawson

IDG News Service
Show Comments



Sansai 6-Outlet Power Board + 4-Port USB Charging Station

Learn more >



Back To Business Guide

Click for more ›

Most Popular Reviews

Latest Articles


PCW Evaluation Team

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?