The National Telecommunications and Information Administration (NTIA) ruled against hedge fund manager Phil Falcone’s telecom start-up LightSquared yesterday, but the company says they are definitely not done trying to get their service off the ground.Here’s what happened without all the technical jargon: LightSquared has to get cleared to run by the FCC, and the NTIA recommends to the FCC — so you can see how this ruling would be a problem. The regulators say that LightSquared interferes with the frequencies of GPS systems, and that’s something LightSquared doesn’t deny. LightSquared simply argues that the interference isn’t their fault, quite the contrary, they say that GPS signals are the ones interfering with LightSquared and that GPS companies should have fixed this problem over a decade ago.
Of course, back then LightSquared didn’t have Falcone’s billions to get it off the ground. And it’s because of those billions that they keep fighting. Sources close to the situation have told Business Insider that the company believes it still has legal recourse to move forward, and their press release suggests that they’re willing to use it.
LightSquared profoundly disagrees with both the NTIA’s and the PNT’s recommendations… NTIA relies on interference standards that have never been used in this context, and were forced by the GPS community in order to reach the conclusions presented today. This, together with a severely flawed testing process that relied on obsolete and niche devices, shows that the FCC should take the NTIA’s recommendation with a generous helping of salt…
LightSquared recognises, however, that this is just one step in the process, and it remains committed to working toward a resolution. The final regulatory decision rests now with the FCC, which is the proper authority to resolve this issue.
We don’t know how much of Falcone’s own personal money is invested in this project, but we do know that the man who once managed over $26 billion is now managing only $4 billion now.
This wouldn’t be the first time he’s fallen from grace though. Click here to see more of the Sensational Life Of Hedge Fund Manager Phil Falcone>>