By Brendan Sasso - 09/20/11 10:07 PM EDT
LightSquared plans to provide high-speed cellphone service through a network of satellites and land-based cell towers. Tests earlier this year revealed its network interferes with GPS devices, which are considered critical to public safety.
Billionaire Philip Falcone is a primary investor in LightSquared and a Democratic donor.
The Federal Communications Commission has said LightSquared will not receive final approval to launch its network until it resolves the interference issues.
According to a report in the Daily Beast, Air Force Gen. William Shelton felt that the administration pressured him to change his testimony in a closed congressional briefing to make it more supportive of LightSquared. A spokeswoman for Shelton said his testimony was his own.
White House spokesman Eric Shultz said the Office of Management and Budget “reviews and clears all agency communications with Congress, including testimony, to ensure consistency in the Administration’s policy positions.”
Emails also reveal that LightSquared has communicated with White House aides.
LightSquared denied that it ever tried to gain political favors.
“It’s also ludicrous to suggest LightSquared’s success depends on political connections,” LightSquared CEO Sanjiv Ahuja said last week. “This is a private company that has never taken one dollar in taxpayer money.”