Why You Should Regret LightSquared's Setbacks

from the competition-is-good dept

LightSquared is a new wireless carrier that has been trying to launch a wholesale 4G network across the USA. Funded by private equity firm Harbinger Capital, it sought to re-purpose satellite communication frequencies to build a nationwide cellular-satellite hybrid network, and then re-sell the network capacity to other brands. In January 2011, the FCC, eager to foster new competitors in the mobile space, gave LightSquared the green light to launch using their spectrum with one provision - that their network equipment NOT interfere with GPS signals and devices. Well, over a year has come and gone, and despite incredible effort and wrangling, the independent testing keeps indicating that LightSquared's terrestrial towers are not compatible with GPS device use. As such, the FCC has basically rescinded LightSquared's request to launch service on their 1.5GHz L-Band spectrum.

Note that, while LightSquared DID knock out GPS devices, it was not LightSquared that transmitted on the GPS frequencies, but rather the GPS devices that sloppily "listen" to the adjacent LightSquared frequencies. The GPS chipsets were generally cheaply made with inadequate filtering. That said, who is at fault is irrelevant: it remains LightSquared's problem to solve if they want to launch their network. A long history of spectrum policy states that new entrants must not mess up the existing radio devices.

What we've lost here is the chance to have a truly innovative wireless carrier which would have stimulated competition, energized the vendor community, and provided a white-label network for MVNOs. LightSquared had, in fact, signed up dozens of partners who would offer LTE wireless services as cellular companies, CE makers, and store brands like Best Buy, for example, who could sell connectivity in a bundle with laptops. Maisie Ramsay over at Wireless Week explains how a vast community of over 30 technology vendors have also lost a valuable path to market.

What strikes me, as someone who works with wireless carriers (LightSquared included), is that we may lose one of the scrappiest players out there. And markets thrive when a scrappy player stirs up the pot. Hutchison Whampoa stirred up the UK markets when it launched 3G in 2003, Free is currently doing the same in France. In the USA, we have regional players like Metro PCS, but nothing at the national level. My role at the Telecom Council of Silicon Valley is right where innovators meet with the telcos, and it was gratifying to see the tornado of new ideas, vendors, and possibilities that came about with a new network. Without legacy systems nor legacy thinking, lots of great ideas are free to emerge.

For now, with LightSquared's options dwindling, we may have to have to look elsewhere for new competition and open creativity. The WiFi space is fairly promising, as the spread of hotspots continues to soar, and new versions (802.11ac) promise greater range and throughput. Chipsets are cheap, and billions of WiFi devices have been produced. Republic Wireless exemplifies the possibilities of leveraging WiFi in mobile phones to the limit. Lots of people are hoping that the "white spaces" frequencies in between TV channels will be offered up to a WiFi variant, which will mean low-frequency spectrum that penetrates walls and buildings much better than today's WiFi. I like what the US carriers have done with the (globally) early launch of LTE, but there's no doubt that with increased competition we'd have a more dynamic market.

Filed Under: competition, gps, interference, spectrum, wifi, wireless
Companies: lightsquared


Reader Comments

Subscribe: RSS

View by: Time | Thread


  1. icon
    Manabi (profile), 20 Feb 2012 @ 8:32pm

    We should regret LightSquared's failure to grasp the laws of physics?

    Apparently you have no clue about the laws of physics. As has been pointed out numerous times by many, many people, LightSquared's failure was their own damn fault and what's more, they should have seen it coming.

    This isn't GPS receiver's faults. The band that LightSquared wanted to use is directly adjacent to the GPS bands. And it was licensed, properly, for satellite broadcast. That means very low power signals. The terrestrial signals LightSquared wanted to use are, literally, over 1,000 times as powerful. Let's see you make out a candle lit in front of a spotlight while staring into the spotlight and see how well you fare. It might be possible, but it's very, very difficult. Filters that can filter out that kind of power level are about the size of a scuba tank. I don't think people are going to be willing to lug their GPS receivers around on their backs because some idiots refuse to grasp the laws of physics.

    The only thing to regret here is that LightSquared is run by idiots who should have known better, were undoubtedly told multiple times by their own engineers that this was impossible, but they continued to forge ahead anyway. Any shareholders should sue them into oblivion. If they're privately held, their investors should raise holy hell with them. This wasn't an example of creativity, this was an example of idiocy trying to blame everyone else for their own failures.

Add Your Comment

Have a Techdirt Account? Sign in now. Want one? Register here



Subscribe to the Techdirt Daily newsletter




Comment Options:

  • Use markdown. Use plain text.
  • Remember name/email/url (set a cookie)

Follow Techdirt
Techdirt Gear
Shop Now: Copying Is Not Theft
Advertisement
Report this ad  |  Hide Techdirt ads
Essential Reading
Techdirt Deals
Report this ad  |  Hide Techdirt ads
Techdirt Insider Chat
Advertisement
Report this ad  |  Hide Techdirt ads
Recent Stories
Advertisement
Report this ad  |  Hide Techdirt ads

Close

Email This

This feature is only available to registered users. Register or sign in to use it.