Where Are We? - GPS Declassified: From Smart Bombs to Smartphones - page 180

included similar language in his budget concerning interference of commer-
cial devices. 271
Responding to criticism from such major companies as General Motors and
John Deere., LightSquared's public relations campaign ran nationwide full-
page ads in the New York Times and Wall Street Journal and launched the sup-
posedly grassroots Empower Rural America Initiative to bring broadband to
the heartland. 272 The tone of the company's news releases ranged from coop-
eration to contempt. After tests confirmed interference, LightSquared offered
in June 2011 to swap spectrum with another Harbinger-ailiated satellite pro-
vider and use a frequency farther from gps signals at lower power until a tech-
nical solution emerged. 273 When gps manufacturers balked because they were
unsure any technical remedy was possible, LightSquared blamed the industry
for failing to build receivers with adequate noise filters and called the billions
spent by government on gps a “federal handout” to them. 274 The fcc ordered
more tests. 275 In October the company's general counsel released a statement
that seemed to lay the groundwork for litigation, and Carlisle, the executive
vice president, accused National pnt Advisory Board members of bias due to
their financial interests. 276 As the January 26 anniversary of the fcc waiver
approached, the company charged that gps industry insiders had “rigged” test
results by using obsolete receivers. 277 Intense lobbying continued. The ntia
sent the fcc a letter on February 14, 2012, summarizing its review of tests by
various federal agencies. “We conclude that LightSquared's proposed mobile
broadband network will impact gps services and that there is no practical way
to mitigate the potential interference at this time,” it stated. 278 Later that day
the fcc issued a news release announcing its intention to vacate the condi-
tional waiver and suspend indefinitely LightSquared's authority to build more
ground stations. 279 Responding to the decision, LightSquared ceo Sanjiv Ahuja
characterized the nationwide coverage requirements the fcc attached to the
company's original request as a government mandate that forced LightSquared
to invest nearly $4 billion only to have the agency change its mind. 280 The com-
pany vowed to fight on, but its finances were unraveling. Within two weeks a
group of investors sued Harbinger Capital, and LightSquared defaulted on a
$56 million payment to a satellite operator. 281 A week later the company cut
nearly half of its 330 employees and Ahuja stepped down as ceo. 282 In March
Sprint Nextel canceled a $9 billion, ifteen-year spectrum hosting agreement,
and on May 14, 2012, LightSquared filed for bankruptcy, still vowing to reor-
ganize and find a way to build its network. 283