LightSquared's Waiver Suspended Indefinitely

LightSquared may have suffered a fatal setback in its effort to build its 4G LTE network on the cheap. The FCC has indefinitely suspended the waiver that allowed LightSquared to use spectrum that had previously been reserved for satellite communications for terrestrial use. The National Telecommunications and Information Administration, a Department of Commerce agency tasked with overseeing military and government spectrum use, determined that the LightSquared's interference with other devices, including GPS devices, was unavoidable.

A scandal developed when it was reported that the White House had pressured an Air Force general to change his testimony and in effect testify that LightSquared's intended use of the spectrum would pose only manageable problems for missile guidance, air traffic control, and commercial GPS applications. Later Senator Chuck Grassley reported a call center was offered to his home state, Iowa, if he would "pull punches" in his investigation of LightSquared. Previously this blog reported that members of the Obama administration were invested in the company. Also, LightSquared obtained the spectrum when it acquire Skyterra and the waiver granted by the FCC was tantamount to a $10 billion gift from the taxpayers.