Lobbying and new spectrum: One last shot for LightSquared

[Commentary] Most industry observers considered LightSquared's fate sealed when it filed for bankruptcy back in 2012 after failing to receive government approval to launch its cellular network in the face of interference concerns with GPS. But the company has been diligently pursuing an alternative path to bring its business plan to market.

It is unclear who is going to win the lawsuit that LightSquared founder Phil Falcone filed against Dish chairman Charlie Ergen for allegedly attempting to purchase LightSquared’s debt in secret, but more than a fight between two billionaires, it is about possession of who has possession of the wireless spectrum and government agencies may have to share spectrum with private companies. That is why LightSquared has spent $1.3 million on federal lobbying to share 5MHz of airwaves currently used by the National Oceanic and Atmospheric Administration (NOAA). In exchange, LightSquared would give up its right to use terrestrial signals in the 10MHz closest to GPS. The FCC granted it authority to test the feasibility of spectrum sharing with NOAA. What’s more, it could help the government in other ways if this works out. “There is much more interest to prove now that spectrum sharing among federal and commercial users is possible,” said Harold Feld, a senior executive at the consumer interest group Public Knowledge. It also helps that a handful of major trade associations—including CTIA, the Competitive Carrier Association, and the Computer and Communications Industry Association—have expressed some support for the new proposal and there has been no voiced opposition from the GPS industry. But time is working against LightSquared.

The bankruptcy court judge plans to rule on a reorganization scheme this December, and Dish has already put enough money on the table to make the lenders whole. In all likelihood, the FCC will only push to make sure the spectrum goes to good use, not to help any particular company.