The lofty plans of the startup company LightSquared to construct a high-tech 4G wireless data network just ran into more trouble. Already under examination for possible interference with GPS satellite signals, a report for the FCC reportedly concludes that LightSquared technology will significant degrade access to the Global Positioning System.
The report is currently being written in collaboration between LightSquared and the U.S. Global Positioning System Industry Council, a group with strong ties to the industry. Sources close to the Wall Street Journal made this assertion which if true would be a serious setback for LightSquared.
Up until recently, things looked bright for the ambitious company when it received a green light from the FCC to begin building its network infrastructure in January.
In another blow, Bloomberg has also reported that General Motors just asked Federal regulators to take a hard look at the proposed LightSquared network on its behalf. Specifically GM is concerned about interference that would negatively impact the company's Satellite-based OnStar system for its automobiles.
Many of the objections rise from LightSquared's plans to use terrestrial transmitters to bolster hardware in orbit. These towers put out much stronger signals than satellites way above the earth. LightSquared has made it a clear goal to switch its network on by the second half of this year and sell bandwidth wholesale to the highest bidder.
Telecom news site Light Reading also claims that LightSquared has received a two week extension to file the GPS report in question with the FCC. It seems much drama may lie ahead for the company.