FCC comment period keeps LightSquared hopes alive

Would-be LTE wholesaler LightSquared finally got some good news at the end of last week, as the Federal Communications Commission opened a request for comments on LightSquared's argument that GPS equipment should not be legally protected from interference potentially caused by LightSquared's network.

The public comment period will be open until Feb. 27, with follow-up responses due by March 13.

Things have been looking bleak for LightSquared in recent weeks after a leaked federal government report indicated that instance of interference had occurred during testing, and that no further tests would be administered. That news had come not long after LightSquared investor and partner Sprint officially put its partnership with LightSquared on hold.

The company also has been gradually running out of money, though billionaire Carl Icahn and others have been buying up debt, which arguably could signal some confidence that LightSquared will see better days.

LightSquared's future is still largely up to the FCC, which has yet to officially rule on whether or not the network will be allowed operate as planned. The FCCis awaiting official interference test results, which could come at any time, though the new public comment period suggests that a decision could be at least a month and a half away. LightSquared still lives.

For more:
- read this BusinessWeek story

Related articles:
Federal officials this month said there would be no more tests
Sprint froze the LightSquared deal after initially extending it

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