LightSquared: Blocking network would reduce value of all spectrum

If the Federal Communications Commission sides with the Global Positioning System (GPS) industry and prevents wireless startup LightSquared from deploying its land-based broadband network, it would decrease the value of all wireless spectrum, according to a study released Tuesday.

"For the first time ever, the FCC would say you can have squatter’s rights to spectrum simply by creating a wide open receiver," said Jeff Carlisle, vice president of public policy and regulatory affairs for LightSquared, at a briefing for reporters. 

The study, prepared by Brattle Group economist Coleman Bazelon and commissioned by LightSquared, found that blocking LightSquared's network would create new uncertainty in wireless spectrum regulation. 

"By revoking LightSquared's authority, the FCC would introduce the possibility that future license allocations may also be revoked," Bazelon wrote. That uncertainty could reduce future the value of spectrum by as much as 10 percent, the report estimated. 

GPS-makers have asked the FCC to stop LightSquared from building its network because tests have shown the network interferes with their devices.

LightSquared agreed to restrict its land-based network to the lower half of its spectrum to reduce the interference problem.

On Tuesday, Carlisle said any remaining interference issues are with precision GPS devices, which are primarily used in mining and agriculture. 

He said his company has offered to pay for the research and development into better precision GPS receivers that are not disrupted by LightSquared's network.

"Given the cost of what we've proposed to us, we've done everything to address the problem," Carlisle said. "We're not the ones ignoring it. I think that blame lies with others."

Carlisle expressed disbelief that the billions of dollars his company invested could be undermined by an interference problem with precision GPS receivers. 

"The point is that we know we can fix this problem as a technical matter, so you're going to allow this relatively small user base, which could be moved to a new better solution for them, to block the deployment of a whole new broadband network? Really?" an exasperated Carisle asked.

He said the GPS industry should have addressed any interference problems eight years ago when LightSquared's predecessor company first proposed using its spectrum for a land-based network.

The GPS industry insisted that there is nothing new about the FCC requiring a land-based cell network to not disrupt GPS service. Jim Kirkland, general counsel of GPS-maker Trimble, pointed to the billions of dollars at stake for companies that rely on high precision GPS devices.  

"Having failed to establish that it can operate without causing interference to GPS, LightSquared is now trying to change the subject to spectrum policy. This is equally weak ground," Kirkland said. 

"GPS receivers incorporate state-of-the-art filters that reject transmissions in adjacent bands that are hundreds of millions of times more powerful than those of GPS. But LightSquared is proposing to transmit signals that are at least one billion times more powerful," he said. "There has never been, nor will there ever be, a filter that can block out signals one billion times more powerful than those transmitted in an immediately adjacent frequency."

--This story was updated at 3:32 p.m.