FCC Expected to OK Cellphone Use of Satellite Airwaves

Federal officials are likely to sign off on plans allowing a satellite broadband start-up backed by private equity fund Harbinger Capital Partners to lease its airwaves for traditional mobile phones.

The Federal Communications Commission is expected to grant a request by the start-up, LightSquared, to drop a requirement that cellphones using satellite airwaves must be able to communicate with satellites. The request would be a major victory for Harbinger, which would be allowed to lease its airwaves to wireless companies for use by traditional cellphones or wireless gadgets instead of pricier satellite-enabled phones. LightSquared is a Virginia-based start-up funded mostly by Harbinger, a hedge fund founded by Philip Falcone, which has invested billions to launch a national broadband wireless network.

Some wireless phone companies have expressed concern about the request, since satellite spectrum has generally been auctioned off for much less money than other airwaves that are now used for cellphone service. CTIA, the wireless industry's trade group, said in December that it supports the flexible use of satellite airwaves but said the FCC should make those changes more broadly instead of helping one company.