LightSquared Files New FCC Proposal

Company suggests use of revised spectrum.



LightSquared is not giving up its battle to launch its wireless satellite network despite a pending bankruptcy, The Wall Street Journal reported on Friday.

The company wants to launch the network using its 5 MHz of spectrum, which LightSquared claims hasn't caused the GPS interference that led the Federal Communications Commission (FCC) to prevent the network launch earlier this year. The company also wants to use another 5 MHz of spectrum to be shared with the government.

LightSquared has filed its request with the FCC, but there is no timeline for a response.

While many LightSquared employees lost their jobs as a result of the FCC’s decision, the company appointed Doug Smith as chairman of the board and CEO in August. In a press release announcing his appointment, Smith expressed confidence that the company would be able to find a solution and launch its network.

Billions of dollars have been invested into the company, but the FCC and the bankruptcy aren’t the only hurdles that stand in LightSquared’s path to success. Phillip Falcone and his Harbinger hedge fund firm, which control LightSquared’s equity, are being sued by the Securities and Exchange Commission on charges of misappropriation of client money, manipulating bond prices and favoritism of certain clients, according to the Journal. Falcone maintains that the charges are unfounded.