On Thursday, LightSquared and the FCC-mandated Technical Working Group (TWG), which is made up of representatives from both GPS-dependant industries and LightSquared, submitted final arguments for and against LightSquared's $7 billion dollar proposal.
From an industry standpoint, LightSquared is one of the most important technology companies you've probably never heard of. The Virginia-based, decade-old provider of mobile satellite network was acquired last year by Harbinger Capital Partners, an NYC-based hedge fund. Harbinger's idea was to use LightSquared's satellite frequencies to operate a much more lucrative, wholesale cell phone network that it claims would translate to $120 billion in savings to consumers. While LightSquared owns its own spectrum, it needed FCC approval to use it for a different purpose.
In January, the FCC said LightSquared could deploy the terrestrial network as long as it didn't interfere with nearby GPS frequencies. The FCC cobbled together the TWG, and in March an offshoot of members from the TWG and GPS industries, the Coalition to Save Our GPS, formed in opposition of LightSquared's proposal.
In Thursday's revised proposal, LightSquared outlined a three-prong plan that essentially shifted the network to a new block of spectrum, one it said was far enough from GPS frequencies so that it would reduce interference for 99.5 percent of GPS devices. It claimed (the other 0.5 oercent covers precision agriculture and mining.
As expected, members of the Coalition to Save Our GPS said the revised proposal would lead to a "complete loss of GPS function" and should be quashed.
Immediately after submission, members of the Coaltion to Save Our GPS held a press conference to iterate their argument.
"This is probably hyperbole, but it would've been an unmitigated disaster of almost biblical proportions," said Jim Kirkland, vice president and general counsel of GPS equipment vendor Trimble. "It doesn't get much more serious than when ambulances, police and fire department vehicles miss critically important information or lose precious time in reaching the scene of an accident or crime because of interference with GPS signals."
Kirkland also sounded skeptical of LightSquared's new proposal because the first one failed countless tests conducted by government agencies and industry bodies. "LightSquared thought that idea was going to work...this raises serious issues as to LightSquared's credibility and technical acumen," he said.
Furthermore, Kirkland pointed out that the revised plan relied on the use of reception filters that had not yet been invented.
Meanwhile Martin Harriman, LightSquared's executive vice president of Ecosystem Development and Satellite Business, accused the coalition of not taking LightSquared's proposal seriously enough during the last few months.
"We've spent over $100 million on months of research, and to have them come back so flippantly is really disappointing," he said.
Other sources involved say there was little cooperation within the committee members, such as test results being turned in at the last minute (leading to LightSquared's sheepish request for a deadline extension) and endless arguments over tangential points.
"This shouldn't be an either-or argument. I think America needs both a strong GPS system and more spectrum brought to market because of the shortage of wireless broadband spectrum. That's why we're looking for a solution, they're just looking for free spectrum," Harriman said.
Now the fate of America's first wholesale cell phone network, and official partners is in the hands of the FCC. The timing is uncanny as the federal agency simultaneously considers a billion-dollar merger between AT&T and T-Mobile.
For more background, see LightSquared's Current LTE Rollout Plan Would Block Aircraft GPS.