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Adventures in Crony Capitalism

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lil mike
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« on: December 27, 2011, 02:16:32 pm »

And the Lightspeed saga continues...

http://www.thefiscaltimes.com/Columns/2011/12/22/Obama-Betting-Another-Iffy-Company.aspx#page1

hat happens when crony capitalism isn’t enough? LightSquared had almost every advantage in their audacious plan to exploit the Obama administration’s goal of expanded broadband delivery -- key political connections in the White House, a curiously incurious FCC, and a hotshot hedge-fund wizard as its main financial backer. The only thing LightSquared lacked was a system that didn’t create havoc on the airwaves, but the company won’t let that stand in the way of their ambitions.

LightSquared’s CEO, Sanjiv Ahuja sent the Federal Communications Commission a petition this week demanding that the FCC grant approval for a waiver  that will allow a rollout of a terrestrial-based 4G network on frequencies allocated only for low-power satellite communications -- an action that would put lumps of coal into the stockings of millions of users of GPS technology this Christmas season.


however someone is buying some time...

In case that doesn’t prevent the FCC from succumbing to political pressure, Rep. Michael Turner inserted language into the National Defense Authorization Act (section 913) that requires the Secretary of Defense to ensure that no commercial services are presenting “widespread harmful interference” – and certify that every 90 days for the next two years. It furthermore requires that the FCC “ensure that the signals of Global Positioning System satellites can be received without interruption or interference.” President Obama will sign the NDAA in the next few days (a bill that has other controversial provisions in it), which will give this language the force of law.

Once Obama signs the bill, the FCC has no choice but to deny LightSquared’s petition for a declaratory ruling in their favor and refuse to allow them to proceed for another two years. That’s good news for consumers, travelers, and the military – but bad news for the company that tried to get a cell-phone frequency allocation on the cheap at the expense of everyone else.
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