Phil Falcone’s embattled telecom investment, LightSquared, is fighting back amid reports that the 4G wireless service provider interferes with GPS systems.
LightSquared executives are claiming that tests conducted by the government showing the telecommunication system was not compatible with GPS systems were rigged. The test results were leaked last month as the company attempted to gain federal approval to launch. LightSquared made the claims in a teleconference call with reporters this morning, according to CNET.
During the call, LightSquare executives and a paid consultant Ed Thomas—a former engineer at the Federal Communications Commission—alleged that the tests on LightSquared’s proposed 4G wireless network were done in secrecy with old GPS devices that are no longer in use, which may have produced biased and bogus results. They also pointed out that no methodology for the tests have been publicized.
Thomas also claimed that the government rigged similar tests when he worked at the FCC, CNET reported.
Just last week, federal officials had announced the LightSquared disrupted how GPS devices work and that they would not approve the company for commercial use if it seriously affected GPS devices, according to Bloomberg.
The venture—whose biggest investor is famed hedge funder Phil Falcone—had already been embroiled in controversy over possible attempts to hide the networks’ effect on global tracking systems and suspicious White House involvement in the company. But now that they’re fighting back and pointing fingers at the government, it seems like there’s hope for the investment yet.