LightSquared “running out of cash”

posted at 11:25 am on December 20, 2011 by Ed Morrissey

In my first full-time job, I sold men’s clothes on commission for a small regional chain called Silverwoods in Southern California, a subsidiary in Hart Schaffner & Marx’ retail division (long since defunct).  Some days, I could meet my quota in a couple of hours, and on some days, I couldn’t have sold heaters in the Antarctic.  We called that kind of losing streak having “the Minus touch,” a takeoff on the Midas touch.  In the latter, everything Midas touched turned to gold (a curse in the fable, of course), while in the former case, every potential sale I touched turned to … well, you get the idea.

Perhaps someone might want to check if Barack Obama has the Minus touch lately, because companies that come into contact with his Porkulus package keep heading towards insolvency.  First we had Solyndra, followed by Beacon Power and Open Range, EnerDel, with a campaign-financing detour to MF Global.  Next up — LightSquared?

The upstart wireless company that is being bankrolled by Philip Falcone’s $5 billion Harbinger Capital Partners hedge fund could run out of money during the second quarter of 2012, according to the company’s financial statement.

LightSquared, which registered a $427 million net loss during the first nine months of this year, may not be able to “continue as a going concern” unless it can raise additional capital and financing, the statement reviewed by Reuters said.

“There is a need to raise substantial capital beyond the beginning of the second quarter of 2012 in order to have sufficient liquidity,” the company’s statement said.

It’s been no secret in the telecom world that LightSquared is in need of cash, but the financial statement paints a fairly bleak outlook for the Reston, Virginia-based company. A failure of LightSquared would be another jolt to investors in Falcone’s hedge fund, which has committed more than $3 billion in equity and loan commitments to the company. Falcone gained fame after making billions in 2007 by shorting subprime mortgages.

How likely is Falcone to find more investors in LightSquared?  With the failures of the FCC-mandated tests now publicly known, that seems unlikely — at least under normal circumstances.  The firm’s business plan relies on basing its 4G cell network on frequencies already allocated to LightSquared for low-power satellite communications.  If they have to bid on other frequencies allotted to this kind of commercial service, it would cost billions and moot their whole business plan, especially their partnerships based on significant undercutting of existing cell-phone networks.

That’s why LightSquared tried doubling down on lobbying and political pressure.  The terms of the waiver requires the FCC to reject LightSquared’s application for a permanent waiver to use those low-power satellite frequencies, as they interfere with most GPS units, including military and aviation systems.  LightSquared doesn’t have enough cash for more R&D to figure out how to avoid that interference with millions of GPS receivers that have been sold with FCC blessing over the last decade or more, if it can be done at all.  They have to start seeing revenue soon or they will go bankrupt, and so the only option left is arm-twisting on Capitol Hill to get the FCC to approve the LightSquared rollout and begin making money rather than spending it.

LightSquared looks like yet another costly failure related to Obama’s stimulus, although in this case the only cost to taxpayers appears to be the testing.  I guess those poker nights and “luxe social events” won’t have quite the same cachet …

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“The Minus Touch” – That is great!

VegasRick on December 20, 2011 at 11:28 AM

Can we say “scandal plagued administration” yet?

JimK on December 20, 2011 at 11:28 AM

We are gradually inured to a bailout for them. It isn’t the government picking winners & losers anymore, it is the government dictating where capital goes.

roy_batty on December 20, 2011 at 11:30 AM

At least it is not taxpayer money getting set on fire again.

Mord on December 20, 2011 at 11:31 AM

Perhaps someone might want to check if Barack Obama has the Minus touch lately,

Lately? ….LATELY?!

Youngs98 on December 20, 2011 at 11:32 AM

It is not a bug, it is a feature, the bankrupcy is needed to close the door for clawback of any money, which was used to pay them off. It is modern day money laundering enterprise.

anikol on December 20, 2011 at 11:34 AM

First we had Solyndra, followed by Beacon Power and Open Range, EnerDel, with a campaign-financing detour to MF Global. Next up — LightSquared?

The Minus Touch–that’s perfect. Also consider the solar-centric names of these companies–Solyndra, LightSquared…and the mythological Flight of Icarus, a man of hubris who flew too close to the Sun and the wax on his wings melted, sending him crashing to earth. The similarities are stunning.

ted c on December 20, 2011 at 11:35 AM

We’ve all known a special someone in our lives–family member, coworker or friend–someone who seems to just leave a pleasant, productive and fruitful basket of consequences in their wake. For example, a salesman who earns an award for a good quarter of sales, a doctor who is highly sought out by patients, a contractor who is busier than a one legged man in a butt-kicking contest. You know that guy, right?! Well, there are also guys like Barack Obama. Guys whom have some dark cloud around them…those that talk a great game but the products of their labor seem to always turn into sh!t. Yeah, yeah, the type of guy that always has an answer and comeback for everything—it was the weather, it was my luck, it was THEM, or those guys. That’s the type of president that Barack Obama happens to be–despite him claiming the mantle of the nation’s 4th bestest president. Nope. Great presidents excel despite their circumstances. Obama Icarus is plummeting to earth because he’s been too close to Solyndra/Lightsquared.

ted c on December 20, 2011 at 11:40 AM

You take chances and sometimes you win, but many times you lose. That’s what made our economy and nation great. Obambo should keep his fingers off the economy. The fool has no clue at all. He is so full of $#it.

rjulio on December 20, 2011 at 11:40 AM

Almost every day there is another obama scandal and the MSM refuses to cover this. If obama is re-elected, our country as we know it now will be gone. We are truly becoming another North Korea with the help of the MSM, Hollywood and unions!

vietvet68 on December 20, 2011 at 11:41 AM

Lightsquared is fine. The Won can issue an Executive Order telling the FCC to STFU. That way they can roll out this abject failure of a technology starting next week. Yes your car GPS will be useless – get a map. And planes will start crashing, missiles are going to mistake Dunkin Donuts shops for Taliban training camps, etc .

It’s called Progress and Social Justice, you peons.

Or The Won can sell a huge chunk of the corect part of the spectrum to LightSquared if they promise to buy a few Chevy volts and pose for a photograph with the sainted one.

CorporatePiggy on December 20, 2011 at 11:42 AM

Perhaps someone might want to check if Barack Obama has the Minus touch lately
Our algebra teacher was wrong when he taught us that there is no such thing as negative Zero.

Shy Guy on December 20, 2011 at 11:45 AM

Huh???? Repost:

Perhaps someone might want to check if Barack Obama has the Minus touch lately

Our algebra teacher was wrong when he taught us that there is no such thing as negative Zero.

Shy Guy on December 20, 2011 at 11:45 AM

LightSquared “running out of OTHER PEOPLE’S cash”

Fixed in honor of Margaret Thatcher

mankai on December 20, 2011 at 11:50 AM

I’ve heard there is good money to be made in sending illegally purchased firearms to Mexican drug cartels. Seems perfect for a company needing some cash flow, especially if they have some inside government contacts to allow it to happen.

a capella on December 20, 2011 at 11:51 AM

Well obviously it’s time to “invest” more taxpayer money!

Gotta keep those campaign contributors and bundlers happy!

GarandFan on December 20, 2011 at 11:53 AM

Bambi’s problem is he keeps reading this. And he’s stuck on chapter one.

VietVet_Dave on December 20, 2011 at 11:55 AM

This is what happens when you think you can rely on other people’s money, mainly our tax dollars. You get lazy, screw up and then hope for a bailout. Then you contact the folks you bribed donated to their campaign so can get your investment back from the politicians.

banzaibob on December 20, 2011 at 11:56 AM

Shocked Shocked Shocked I SAY!

Dino V on December 20, 2011 at 11:58 AM

Maybe they wouldn’t be running out of cash if they would quit running political ads in my state

/disgruntled Buckeye

The Schaef on December 20, 2011 at 11:58 AM

I hope they fail.

Harbingeing on December 20, 2011 at 11:59 AM

I’m not sure that it is true to call these losing ventures a curse of the minus touch.

How else is Obama supposed to launder the money being diverted to his campaign by the bundlers heading up these corporations that he has picked as “winners” in the government funding lottery? You really think Corzine doesn’t know where all that money went? Or the executives at Solyndra? The fact of the matter is that these corporations lasted as long as they were needed to be around. The only ones who lose are taxpayers and shareholders.

Happy Nomad on December 20, 2011 at 12:00 PM

The companies coming to Obama and the government for assistance are selected by the corrupt environment we’ve made. They’re failures because, if they could make it in the real world, they would have. These are companies that, instead of investing in innovation and efficiency, are putting their assets into Crony Capital, i.e. political influence. The corruption of our government made that look like a good bet, and for a while it was. But facts and reality are stubborn things. Eventually, GM, GE, FHLMC, and other big Crony Capital industries banking on EPA regulations, Global Warming treaties, and government subsidies will find that their capital has all dried up.

The big question is: Will our economy survive when that happens?

Socratease on December 20, 2011 at 12:01 PM

This news just ensures that the next payoff bailout is right around the corner.

search4truth on December 20, 2011 at 12:02 PM

“There is a need to raise substantial capital beyond the beginning of the second quarter of 2012 in order to have sufficient liquidity,” the company’s statement said.

Really? What could go wrong with that?

1) Set up technology that screws up lots of existing technology.

2) …………….?

3) Profit!

iurockhead on December 20, 2011 at 12:02 PM

Investing millions in companies that will eventually fold = cloward/piven.

shick on December 20, 2011 at 12:03 PM

It is not a bug, it is a feature, the bankrupcy is needed to close the door for clawback of any money, which was used to pay them off. It is modern day money laundering enterprise.

anikol on December 20, 2011 at 11:34 AM

^ THIS.

It amazes me that in all these failed porkulus corporations that no one traces the money to where it wound up. “Follow the money” seems to be a forgotten motto in investigative journalism.

The most logical explanation to me is money laundering directed to Obama’s friends and his supporter’s operations.

Difficultas_Est_Imperium on December 20, 2011 at 12:03 PM

Falcone gained fame after making billions in 2007 by shorting subprime mortgages.

Maybe he should consider shorting LightSquared.

iurockhead on December 20, 2011 at 12:04 PM

..consider the solar-centric names of these companies..

ted c on December 20, 2011 at 11:35 AM

Good eye.

shick on December 20, 2011 at 12:06 PM

No wonder they were floating the idea of son of stimulus so hard. They knew back in the summer they companies were floating rocks.

Kissmygrits on December 20, 2011 at 12:07 PM

The most logical explanation to me is money laundering directed to Obama’s friends and his supporter’s operations.

Difficultas_Est_Imperium on December 20, 2011 at 12:03 PM

So these ventures are designed to fail? Yeah, I’ve seen that movie.

“Springtime,
For Obama,
and Washington….”

iurockhead on December 20, 2011 at 12:10 PM

C’mon Ed! Didn’t you watch “The Sopranos”? It’s been a time-honored practice for decades. Organized crime will infiltrate business, loot the assets, and leave the chumps taking the loss. Only difference seems to be, that at least organized crime looks for businesses that have at some point in their history actually produced a PROFIT. God/King Hussein Obeyme the Magnificent, learned the “Chicago Way” so well, he doesn’t even need to worry about the profit part, just loot the resources and leave the chump taxpayers taking the loss. As Mel Brooks once noted, “It’s good to be the king!”

oldleprechaun on December 20, 2011 at 12:11 PM

This isn’t really being fair to Lightsquared. Their initial investment was based on the FCC’s allowing them to use their spectrum for a terrestrial network. So now we find out that they interfere with GPS systems, and everyone’s freaking out and the FCC doesn’t want them to build a terrestrial network with those frequencies anymore.

However, the interference isn’t Lightsquared’s fault. It’s just that all of those Garmins and TomToms don’t do a good job of filtering nearby frequencies (e.g. Lightsquared’s) . This is do to cheap components and a previous lack of need for this type of filtering.

The only fair route is for the FCC to trade Lightsquared spectrum that they can use.

benthere5516 on December 20, 2011 at 12:12 PM

Spot on vietvet68

cmsinaz on December 20, 2011 at 12:13 PM

Fixed in honor of Margaret Thatcher

[mankai on December 20, 2011 at 11:50 AM]

Yeah, I doubt Falcone is going to lose anything when L^2 folds.

Dusty on December 20, 2011 at 12:14 PM

Lightsquared never should have even gotten to test this junk of theirs. By it’s very nature the interference it puts out should make it an AUTOMATIC denial by the FCC. The whole purpose of the FCC is to prevent radio frequencey interference. If they abdicate that responsibility there is no purpose to the FCC.

wildcat72 on December 20, 2011 at 12:23 PM

benthere5516 on December 20, 2011 at 12:12 PM

The fact that they interfered with GPS was known at the very beginning. That is why that spectrum was not authorized for terrestrial cell phone networks in the first place. They had a waiver to use cell towers only to enhance their satillite service. They were NEVER ever promised they could use this band for a terrestrial network. At the time they applied they said they could fix the interference problem. Testing has shown that they have not. They thought they could get past the problem because they had friends in high places. Unfortunately, for them, while their friends in high places managed to somehow forgo the normal auction process for opening up new bands to allow other companies to bid on the band for a new use, but they couldn’t overturn the laws of physics.

Lily on December 20, 2011 at 12:26 PM

These multi million/billion “green” scams are another tag for plain, old fashioned racketeering – just wrapped in a different package. Now about all that real green stimulus money shelled out for the federal “weatherizing” program, anyone know how much of that money has disappeared?

MayorDaley on December 20, 2011 at 12:26 PM

Lightsquared never should have even gotten to test this junk of theirs. By it’s very nature the interference it puts out should make it an AUTOMATIC denial by the FCC. The whole purpose of the FCC is to prevent radio frequencey interference. If they abdicate that responsibility there is no purpose to the FCC.

But the interference isn’t their fault, apparently, it’s the GPS device manufacturers who weren’t accurately filtering out adjacent frequencies. This is the FCC’s fault for giving the green light and now backing away from that, with the loss of billions of investment dollars.

benthere5516 on December 20, 2011 at 12:28 PM

Gee, we never ran into this problem with Haliburton. They were profitable without a monetary transfusion from da gubmint.

And evil. Really evil.

fogw on December 20, 2011 at 12:30 PM

Falcone gained fame after making billions in 2007 by shorting subprime mortgages.

It’s never a great idea to take one data point and draw a line, but it appears that this guy was clever enough to see what happens to the market when the gov’t intervenes and forces certain types of transactions. He’s going to shatter the irony barrier if he then loses it all on a scheme that depended on the government choosing to intervene and forcing a particular transaction.

TexasDan on December 20, 2011 at 12:33 PM

“Everyone gets a blue ribbon” mentality applied to business. Only a liberal (notice I didn’t say Democrat) government can think this is a good idea.

SteveInRTP on December 20, 2011 at 12:33 PM

So now we find out that they interfere with GPS systems

[benthere5516 on December 20, 2011 at 12:12 PM]

While you may have a point, it seems to me the issue is more complex than just pointing to problems with Garmin’s and TomTom’s. The Departments of Defense, Transportation and Homeland Security also have these same complaints.

I’m no expert on this issue by a long shot, but I doubt this is solely an issue of ‘I bought the spectrum and therefore I can anything I damn well please with it’ regardless of how it might interfere with users of nearby wavelengths/spectra. And if L^2 bought it with one intent to use, which may not have had interference problems and is now modifying it’s intent which does have those problems, then that may just be L^2 problem and not anyone else’s.

Dusty on December 20, 2011 at 12:34 PM

Benthere, the interference was a known and predicted problem. Lightsquared attempted to take a billion dollar gift of frequencies (that were not intended for cell-phone use due to this problem) to undercut cell phone companies who had to pay market price for their frequencies that are intended for cell phone use. Lightsquared thought they could get away with it because they had friends in high places. Now if you think that no one (citizens, industry, the military)should be allowed to use a GPS so Obama’s friends can make billions, you’re entitled to your opinion, but I think most of us, and hopefully the FCC, disagree. Perhaps someone could develop a very expensive receiver to use for GPS purposes that could somehow filter in the faint signals from satellites while blocking out the Lightsquared’s local cell towers on the same bandwidth, but why should we pay thousands of dollars for a GPS so that Obama’s friends can cheat the system?

talkingpoints on December 20, 2011 at 12:41 PM

At least it is not taxpayer money getting set on fire again.

Mord on December 20, 2011 at 11:31 AM

I have a sneaking suspicion that will somehow cost us. Small and medium businesses going under hurt everyone in the community to some extent, and I don’t doubt that somehow, some way, the losses of the owners are sometimes covered by the taxpayer if they should be well-connected to local government…maybe by unfulfilled contracts and/or contracts with built-in cost overruns. If they go bankrupt, they walk away with whatever they socked away somewhere to ameliorate their personal losses.

An outfit like this with what appears to be long tentacles going into DC will no doubt get money from the taxpayer and if called to task have some kind of “Corzine moment” where they don’t know where $X went.

Dr. ZhivBlago on December 20, 2011 at 12:45 PM

But the interference isn’t their fault, apparently, it’s the GPS device manufacturers who weren’t accurately filtering out adjacent frequencies. This is the FCC’s fault for giving the green light and now backing away from that, with the loss of billions of investment dollars.

benthere5516 on December 20, 2011 at 12:28 PM

If you read this report, you will find that the FCC did NOT ever give the green light to anything. This is all on Lightsquared, which was trying to use a band that was designated for one use, for a different use for which it had never had authorization. THEY applied for the waiver, which the FCC said they could possibly have IF they could prove it wouldn’t be a problem. It is a problem. Now they want to blame everyone else.

They can still use the band for the use that it was approved for, namely their satellite cell service, just as they always have. They just can’t use it for the new service.

Lily on December 20, 2011 at 12:46 PM

You have to understand: of course the taxpayers and stockholders in these “bailout” companies are losing money hand-over-fist.

But the actual administration CRONIES are making out like the world’s biggest bandits. And when it comes to “crony capitalism,” that’s the only thing that ever matters.

logis on December 20, 2011 at 12:47 PM

We’ve all known a special someone in our lives–family member, coworker or friend–someone who seems to just leave a pleasant, productive and fruitful basket of consequences in their wake. For example, a salesman who earns an award for a good quarter of sales, a doctor who is highly sought out by patients, a contractor who is busier than a one legged man in a butt-kicking contest. You know that guy, right?! Well, there are also guys like Barack Obama. Guys whom have some dark cloud around them…those that talk a great game but the products of their labor seem to always turn into sh!t. Yeah, yeah, the type of guy that always has an answer and comeback for everything—it was the weather, it was my luck, it was THEM, or those guys. That’s the type of president that Barack Obama happens to be–despite him claiming the mantle of the nation’s 4th bestest president. Nope. Great presidents excel despite their circumstances. Obama Icarus is plummeting to earth because he’s been too close to Solyndra/Lightsquared.

ted c on December 20, 2011 at 11:40 AM

ted c – your description reminded me of this guy fromn the lil abner comic strip (except for that part on wikipedia describing him as ‘well-meaning.’ That cannot be the case with the ‘won.’

Joe Btfsplk was a character in the satirical comic strip Li’l Abner by cartoonist Al Capp (1909–1979). He’s well-meaning, but is the world’s worst jinx, bringing disastrous misfortune to everyone around him. A small, dark rain cloud perpetually hovers over his head to symbolize his bad luck. Hapless Btfsplk and his ever-present cloud became one of the most iconic images in Li’l Abner.

Loh2o on December 20, 2011 at 12:50 PM

Silverwoods, Ed? The last time I was in one of those I bought a qiana shirt, and that was before Saturday Night Fever.

Dude.

RRR4VR on December 20, 2011 at 1:05 PM

How different is Dear Reader from Dear Leader? Not as much as you think…

Wasted Air Force-One trips? Check.

Lobster obsessions? Check.

Golfing obsession? Check.

His installment changing the world and making rainbows appear? Check.

Illusions of thinkgs that aren’t really there like Solyndra, Lightsquared, electric cars? Check… Ther list goes on.

contrarian on December 20, 2011 at 1:13 PM

People need to go to jail!
I have lost ALL respect for the major media.
If this were a Republican administration…we would be reading about it every day before page 3, in the newspaper, and at least once a day on a newscast, day after day after day. Now, if they report it once…they have “done their job”!

KOOLAID2 on December 20, 2011 at 1:29 PM

“Solyndra running out of cash”

Oh…..wait…….

Opposite Day on December 20, 2011 at 1:29 PM

How likely is Falcone to find more investors in LightSquared? With the failures of the FCC-mandated tests now publicly known, that seems unlikely — at least under normal circumstances.

Ed, you obviously have never heard of Steven Chu, Nobel Laureate. He’s got tax dollars to burn.

Cicero43 on December 20, 2011 at 1:42 PM

Benthere, the interference was a known and predicted problem. Lightsquared attempted to take a billion dollar gift of frequencies (that were not intended for cell-phone use due to this problem) to undercut cell phone companies who had to pay market price for their frequencies that are intended for cell phone use. … but why should we pay thousands of dollars for a GPS so that Obama’s friends can cheat the system?

talkingpoints on December 20, 2011 at 12:41 PM

*applause*

petefrt on December 20, 2011 at 1:42 PM

Falcone gained fame after making billions in 2007 by shorting subprime mortgages.

Easy come – Easy go, huh Falcone?

BigAlSouth on December 20, 2011 at 2:01 PM

Oboobi’s always been blessed with the “kiss of death” for his favorite winners and the “minus touch” for his ventures. Like “Pigpen”, a dark cloud trailing his every step.

AH_C on December 20, 2011 at 2:05 PM

Follow the money.

FlatFoot on December 20, 2011 at 2:11 PM

. . . although in this case the only cost to taxpayers appears to be the testing

Actually, the greatest cost of these continuing debacles is the further corruption of the entire government, now also including the military.

How do we recoup that?

KorlaPundit on December 20, 2011 at 2:28 PM

wildcat72, you don’t know if the problem is being caused by LightSquared emitting energy on GPS frequencies or if it’s being caused by GPS receivers “listening” on LightSquared’s frequencies.

The point is moot, since the effect is the same. And I don’t think a recall of 10 years worth of GPS sales is in the cards. LightSquared execs should be in jail for their attempt to coerce witnesses through friends in the Executive Branch, and to bribe politicians, even if it’s under the cozy mantle of “lobbying.”

Also, their blatant indifference to the notion that their system would cause failure of our military and aviation guidance systems is gob-smacking.

Finally, the notion that the bozo behind this company got his fortune by shorting the sub-prime mortgages championed by Barney Frank and Friends is the last straw in whether I have any sympathy for the scoundrel.

They are “too big to fail,” or in other words, they need to fail — and fast — or we all do.

KorlaPundit on December 20, 2011 at 2:34 PM

Silverwoods, brings back memories. I remember the store as a good quality men’s clothing store. I shopped there often. That was some time ago, oh well.

rjoco1 on December 20, 2011 at 2:38 PM

God bless General Shelton. Thank God for those Tea Party members who have been the brick wall against the Democrat full steam ahead spending spree. And God preserve Darrel Issa, who seems to hold the only check against the Chicago thugs.

LightSquared is spending a good chunk of their limited funds trying to convince the residents of DC to take the fight to their jobs. They are running lots and lots of radio commercials on the conservative talk show station. Very odd.

And every time I hear it, I think, “Evil company. They don’t care if they bring down passenger planes, our missile defense system and our Garmin.”

Portia46 on December 20, 2011 at 2:40 PM

Oh sweet Ed, you friggin’ credulous naif.
NONE of those businesses were intended to thrive / become profitable. All of them are shams, arranged to funnel OUR tax money back into the pockets of Obama campaign donors and operatives, returning their investments in installing the Obamunists tenfold.

rayra on December 20, 2011 at 4:22 PM

Lightsquared DESERVES TO DIE!!

The “too smart by half” crowd tried to pull a fast one on the FCC, the entire Cell Phone industry, the entire GPS industry, and the military by mis-using a piece of the spectrum.

If economics and lawsuits don’t sink this pig, the military should take it out: it is a credible threat to our military systems.

landlines on December 20, 2011 at 4:38 PM

blink on December 20, 2011 at 2:06 PM

By a policy that is as old as the FCC, the problem ALWAYS belongs to the new transmitter, which is ALWAYS presumed to be the problem and is ALWAYS obligated to fix it. Check Part 15 of Title 47 of the Federal Rules and Regulations for an example of how this policy is implemented.

There is no such thing as cell phones and GPS devices being put out of commission by “listening too hard”…any more than there are humans who are killed by bullets simply because they are “too fragile”.

Your argument is lame and was settled long before the birth of modern communications: give it up!!

landlines on December 20, 2011 at 4:51 PM

But the interference isn’t their fault, apparently, it’s the GPS device manufacturers who weren’t accurately filtering out adjacent frequencies. This is the FCC’s fault for giving the green light and now backing away from that, with the loss of billions of investment dollars.

benthere5516 on December 20, 2011 at 12:28 PM

Signal to Noise ratio.

Sidelobes.

Come back for the quiz.

A first year college grad engineer in anything remotely related to electrical engineering would have pointed out the physics is absolute here, and the Business plan is fatally flawed.

Physics >>> Lobbying

Jimmy Doolittle on December 20, 2011 at 4:53 PM

blink on December 20, 2011 at 5:16 PM

Besides, according to the report that Lily continues to link to, the GPS industry knew all about this plan in 2004.

Link: Reading is a helpful skill.

In 2004, the FCC gave LightSquared “conditional” approval. Further this approval only granted them permission to augment their space-based component.

Was this going to be a problem that required changes in GPS receivers? No!!! In 2004, there was nothing for them for which to prepare. From the report….

At that time, the GPS industry concluded that interference with GPS signal would be manageable as the ATC would simply augment the satellite signal.

So, when did LightSquared request the waiver for a full ground-based cell phone system. The one that is causing all the uproar–you know, Link, the one the GPS vendors should have prepared for…

On January 26, 2011, the FCC granted LightSquared a conditional waiver of its ATC authority ―integrated service rule‖ meaning its customers could offer terrestrial only services.

Wow, less than a year ago. You’re right…that is more than enough time to modify all the receivers in the entire U.S.

This has nothing to do with filters, it has everything to do with a receiver trying to pick up a low power spread spectrum signal from 11,000 nautical miles (GPS orbit) competing against a cell tower transmitting 3 miles away. Guess who wins?

That is why the original provision of using the LightSquared spectrum was to operate from space (22,300 miles at geosynch). Much more of a fair fight, wouldn’t you say?

STL_Vet on December 20, 2011 at 6:17 PM

AT&T bailed today. LightSquares’s spectrum will be traded for a useful spectrum at the discounted rate. Nothing to see here, move along.

MikeinPRCA on December 20, 2011 at 7:28 PM

blink on December 20, 2011 at 5:13 PM

Once again, you are wrong.

The earlier use always wins: thus, LightSquared is ALWAYS the one which must adapt. If you had been in the field for 50 years like I have, you would understand the regulations and how they are applied. What happened in 2004 does not change anything for anybody but (perhaps) LightSquared, who was perhaps permitted to own a shovel with which to dig its own grave.

The LightSquared people are flailing wildly…and anyone who accepts their lame argument is similarly flailing.

Jimmy Doolittle on December 20, 2011 at 4:53 PM

…is also correct, except it would not take a college grad engineer to understand his well-stated point: only an undergrad who took a “Fields and Waves” class from a competent instructor. Your attempt to contradict him only proves that you are NOT that undergrad…and you don’t understand the basics.

In your comment:

blink on December 20, 2011 at 6:36 PM

…you actually contradict your own assertion, although you may not even realize that you have done this.

I’m guessing that you must have bought stock in either Lightsquared or Obama (which is nearly the same thing). Tough luck!!

landlines on December 20, 2011 at 9:17 PM

blink, why don’t you explain it?

itsspideyman on December 20, 2011 at 10:45 PM

Dont’ be so defensive, just asking a question.

itsspideyman on December 20, 2011 at 11:48 PM

You can bicker and argue about ‘oo interfered with ‘oo all you want, but LightSquared is SOL.

Their product would disrupt the existing systems. That means they are boned. Nobody is going to force a recall of every other GPS system in the country just to help Obama’s portfolio.

Nobody gives a crap about what could have been, if only, way back at the turn of the century (’04).

Game over, except for the bitter clingers.

Hey, the CEO can just go back to shorting bad mortgages and making his wealth off of other people’s misery! Oh, that’s right; that train has sailed.

KorlaPundit on December 21, 2011 at 10:27 AM

And my granny “might” have been 8 feet tall.

KorlaPundit on December 21, 2011 at 10:57 AM

The Government doesn’t pick winners and losers, it always picks LOSERS hoping to change (sic) them into winners. Never happens.

Dandapani on December 21, 2011 at 4:34 PM

This issue is slightly more important than the height of your grandmother.

But it’s seriousness is betrayed by its reliance on the word “might.”

KorlaPundit on December 22, 2011 at 12:02 PM