Bad News for LightSquared

The FCC moved on February 14 to bar LightSquared from developing its national satellite-based wireless network following the release of the Commerce Department’s NTIA report that there was "no practical way to mitigate the potential interference at this time" - a reference to the service's potential operational effect on GPS devices.

While the decision is not final, the federal government's unanimity was not favorable to LightSquared. The FCC, which conditionally approved the network a year ago, said in a statement that it now has decided to "not lift the prohibition on LightSquared." In its response, LightSquared said NTIA relied on "flawed conclusions" about the potential impact of its technology on GPS, and vowed to continue working toward a resolution with the government and GPS industry. The company also issued a statement saying that regulators had jeopardized the economic growth -- especially the jobs -- that the project would engender.   NTIA letter  FCC Response