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FCC derails LightSquared’s plan

The Federal Communications Commission (FCC) has decided to block the planned development of a nationwide wireless network by communications company LightSquared over concerns that it cannot be fixed to coexist with global positioning systems (GPS).

The FCC move is subject to public comment and agency commissioners could overturn the decision.  But observers say that, given the line-up of federal agencies expressing concern over the land-based tower network, chances aren’t good for LightSquared.

In a statement, LightSquared expressed disappointment with the decision which it contends is based on “a severely flawed testing process that relied on obsolete and niche devices.” 

The company goes on to state it is committed to finding a resolution with the federal government and the GPS industry and fully expects to build its 14 billion dollar network.

Among those applauding the decision is the American Soybean Association (ASA). ASA president Steve Wellman says it’s a great relief for farmers across the country who use GPS technology to produce more food with fewer inputs.

At the same time, Wellman says LightSquared’s efforts do underscore the pressing need for better broadband service, especially in rural America.

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