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LightSquared Asks FCC to Declare GPS Interference Not Its Fault

Aspiring wholesale wireless provider LightSquared wants the Federal Communications Commission to declare that any interference between its network and GPS systems is the fault of the way those systems are designed.

AllThingsD Ina Fried

Context & Ripple Effects

LightSquared's wholesale network plan has been running into a wall since June 2011, when two government agencies reported that its transmissions interfere with GPS — a finding that landed on a company that had just raised $265 million to build out high-speed wireless and whose backer Phil Falcone has been openly feuding with Verizon and AT&T over access to spectrum and distribution.

The filing reported here is a defensive reframing rather than new engineering: instead of disputing that interference occurs, LightSquared asks the FCC to rule that it flows from how GPS receivers were designed, not from LightSquared's use of its own spectrum. That shifts the fight from physics to allocation of blame — and the FCC, already deep in contested dockets like the AT&T–T-Mobile hearing, becomes the arbiter.

First-order effects

  • The FCC must now decide whether GPS receiver design or LightSquared's network operations are at fault — a ruling that either clears LightSquared's buildout path or formally validates the June 2011 interference findings from the two agencies.
  • GPS-dependent industries named in the interference reports — aviation, agriculture, timing users — gain a formal venue to argue their receivers should not have to absorb adjacent-band transmissions.

Second-order effects

  • If the FCC sides with LightSquared on receiver design, incumbent carriers' arguments about harmful interference standards weaken across other spectrum fights; if it sides against LightSquared, the company's $265 million buildout thesis and its wholesale-customer commitments come under direct pressure.
  • GPS chipset and receiver makers face a potential mandate to harden devices against out-of-band signals, turning an inter-industry dispute into a compliance cost question for equipment vendors.

Third-order effects

  • The case sets a structural precedent for who bears the cost when a new licensee's transmissions degrade legacy receivers in adjacent bands — effectively deciding whether incumbents' installed base gets veto power over spectrum repurposing.
  • A pattern of interference disputes escalating to blame-allocation rulings would push future spectrum policy toward explicit receiver-performance standards rather than leaving protection implicit in historical band usage.

The trend: Spectrum repurposing is shifting from engineering coexistence questions to regulatory blame-allocation fights, where the cost of protecting legacy receivers becomes the central bargaining chip.