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‘Political Influence’

LightSquared Testing Not Hurt By Congressional Interest, Says Carlisle

Congressional interest in LightSquared’s coming service doesn’t impede the company’s ongoing review of interference with GPS services, Executive Vice President Jeff Carlisle said in an interview Wednesday. “The important thing is to recognize Congress’ authority here,” he said. “Congress is an avenue for expressing concern about the issue, and we know it’s a real issue.” LightSquared has faced controversy throughout the process, with its service at the focus of several congressional statements and letters. Last week, a defense bill passed by the House included language that would require resolution of interference with GPS devices used by the Defense Department before the FCC can give the service its final OK (CD May 31 p14). “To the extent that those letters and activity reflect sincere concern, we are willing to work with the members and staff to make sure they understand what we are doing,” said Carlisle, head of regulatory affairs.

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LightSquared CEO Sanjiv Ahuja pushed for increased cooperation in the process, in an editorial in The Hill Wednesday. “Rather than using litigation and political influence to resolve technical challenges, we should once again rely on market forces in combination with pro-growth government policies,” he said. “In this case that means both industries should commit themselves to work together with federal agencies under the FCC’s leadership to assess any potential problems and identify solutions."

LightSquared held a separate call Wednesday with reporters in an effort to straighten out facts on the ongoing testing. Carlisle discussed the history of the FCC’s authorization of LightSquared’s service, going back as far as 2003. Characterizations of the commission as authorizing the entire scenario in the International Bureau waiver granted in January are misleading, he said. Several GPS companies and federal officials have voiced concern with the FCC’s processes on LightSquared.

Recent testing on potential LightSquared interference with GPS services held outside the FCC-required technical working group may be included in the final report the group will present to the agency June 15, Carlisle said. The decision whether to include those tests will fall on the overall group and the sub-groups working on the testing, he said. Deere & Co. most recently presented its testing to the agency, finding “severe interference” from LightSquared-like services during testing in New Mexico (CD June 1 p21). Others have done their own testing as well. LightSquared is planning to begin commercial rollout in 2012, Carlisle said.

Identifying cases of interference isn’t particularly helpful to the process, Carlisle said. Finding out why the interference is caused and how to fix it continues to be the most important aspect of testing, he said. Carlisle said he continues to believe LightSquared and GPS will be able to coexist and all options for mitigation remain on the table. But the solution will have to be “practical” from a business standpoint and a GPS service standpoint, he said.

Meanwhile, Reuters reported LightSquared will pay Sprint $2 billion a year for access to its spectrum. Another report from Bloomberg said LightSquared is working out a deal with AT&T for access to their spectrum. LightSquared declined to comment on both reports.