Harbinger Capital Partners - LightSquared's 4G Network - Philip Falcone
""Investors Back LightSquared's 4G Network
Hedge fund-backed LightSquared announced Monday that it has raised another $265 million to build its proposed independent 4G network, indicating that investors are betting the proposal will clear Federal Communications Commission (FCC) approval despite flunking tests of its interference of GPS signals.
"This latest round of financing signals another endorsement by the financial markets of our business model, and LightSquared's intent to use private capital to build out a new network to meet the growing demand across this entire nation for wireless broadband access," Sanjiv Ahuja, chairman and CEO of LightSquared, said in a statement.
This brings the total investment in LightSquared's proposed network to more than $2.3 billion.
Virginia-based LightSquared is a longtime provider of satellite services that was acquired last year by Harbinger Capital Partners, an NYC-based hedge fund. Harbinger proposed using LightSquared's satellite frequencies to operate a much more lucrative, wholesale cell phone network that it claims would translate to $120 billion in savings to consumers.
While LightSquared owns its own spectrum, it would need FCC-regulated licenses to use the spectrum for another purpose.
In January, the FCC said LightSquared could deploy the terrestrial network as long as it didn't interfere with nearby GPS frequencies. Since then, numerous tests have shown that LightSquared's proposed network interferes with nearby GPS frequencies, with members of the GPS industry saying it would "cripple" signals.
Still, that hasn't stopped LightSquared from landing contracts with consumer-oriented communications companies like Leap Wireless, Cellular South, and possibly Sprint.
Last Friday, LightSquared submitted a new technical proposal to the FCC, which it claims will not affect 99.5 percent of GPS-related devices.
For more from Sara, follow her on Twitter @sarapyin. "
Source of Lightsquared, Philip Falcone, Cellular South, Leap Wireless Post
http://www.pcmag.com/article2/0,2817,2388078,00.asp
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