A US government committee will this week hold a hearing to investigate the FCC’s role in awarding a key licence waiver to embattled 4G venture LightSquared.
The hearing has been set for 21 September, when the House Energy and Commerce Oversight and…
A US government committee will this week hold a hearing to investigate the FCC’s role in awarding a key licence waiver to embattled 4G venture LightSquared.
The hearing has been set for 21 September, when the House Energy and Commerce Oversight and Investigations Subcommittee will look at the decision in January to allow LightSquared to operate a terrestrial broadband network on satellite spectrum.
The FCC has faced criticism for granting the waiver too quickly. It later rescinded its decision after the spectrum LightSquared planned to use was found to interfere with GPS technology. These issues have been preventing the venture, which is owned by Philip Falcone’s Harbinger Capital Partners hedge fund, from launching commercially.
LightSquared filed for voluntary reorganisation under chapter 11 bankruptcy protection back in May, buying it more time to tackle regulatory obstacles. The company is negotiating with the FCC to find a solution to its interference problem, including the possibility of swapping frequencies with the US government.
Falcone is currently seeking to extend the exclusivity period for filing its own bankruptcy plan – a move that is being strongly opposed by a group of lenders representing US$1.08bn of debt in LightSquared LP, the venture’s main operating unit.
A hearing on whether to extend this exclusivity period was due to take place on 14 September, but was delayed to 1 October on the request of LightSquared LP lenders.
Some industry spectators have suggested this deadline extension was requested because a crucial announcement by the FCC on the latest LightSquared negotiations is on the horizon. If such a ruling comes before LightSquared’s bankruptcy hearing, it would give much needed clarity to both sides.
However, other industry watchers find it hard to believe that the regulator would announce any decision before the outcome of the US Presidential election.
An FCC spokesperson declined to comment.
