LightSquared's Wireless Network Interferes With GPS

LightSquared's plan to launch a new national wireless broadband network faces a setback as preliminary tests suggest the start-up's network could knock out some GPS systems.

Later this month, the company and GPS makers are scheduled to deliver a planned report to the Federal Communications Commission about any interference issues that arose from tests held recently in New Mexico. Public safety officials near the testing area reported LightSquared's tower knocked out their GPS systems in some areas, according to Bill Range, New Mexico's E-911 program director, in a letter to federal officials. On May 27, construction giant Deere & Co. also reported to the FCC the risk of "severe interference" on its tractors GPS systems from as far as 20 miles away from a LightSquared tower and "a complete loss of service" between four miles and 22 miles. Initial, unofficial tests by GPS users suggest that high-performance GPS equipment used by the aviation, defense and other industries would be more likely to be hobbled by LightSquared's network than the cheaper devices used by most consumers. If existing GPS equipment needs to be fixed to avoid interference, it's not clear who would pay for those alternations. LightSquared's interference problems could slow down FCC approval of its new network and create problems for other companies – including its primary financial backer, Harbinger Capital Partners, the hedge fund led by Philip Falcone. Harbinger and its affiliates have put $2.9 billion of assets into LightSquared.