FCC pulls plug on LightSquared’s cellular project, angering investor Philip Falcone

Wall Street guru Philip Falcone placed a $14 billion bet on what he thought was a sure thing. Two years ago, his company had the blessing of the Federal Communications Commission to use satellites to bring cellular service to the farthest reaches of the country, a high priority for President Obama.

On April 5, the FCC has put the project on ice, all but killing it. And Falcone, acknowledging for the first time that his business is near bankruptcy, on Thursday pointed an angry finger at Washington. In a scathing critique of inside-the-Beltway politics, Falcone in an interview accused the FCC of bowing to special interests that could have been hurt by the innovation, robbing consumers of a cheaper alternative to AT&T and Verizon Wireless. Falcone and other business groups see the fall of Reston-based LightSquared as a cautionary tale of what can happen when a business bets on Washington.

(April 5)