LightSquared, the massive startup that has been trying to become the fifth national provider of wireless telephone and data service, is considering filing bankruptcy after a series of setbacks have conspired to put the company's plans in real danger. According to a CNN report, Philip Falcone says that the option of bankruptcy protection has become a strong possibility in recent weeks. Falcone is the CEO of Harbinger Capital Partners, the majority owner of LightSquared.
Shares of Sprint Nextel Corp plunged Monday morning after analyst Sanford C. Bernstein downgraded the stock to an “underperform” rating over concerns the company won't sell enough iPhones to cover the enormous costs associated with its agreement with the tech giant. The company is facing a variety of challenges, including the high cost of network upgrades, a massive deb load and delays to launching 4G service due to LightSquared's failed attempt to turn its network on.
Sprint announced Friday it is about two years ahead of schedule in rolling out its shiny new 4G network, sending shares up briefly in morning trading. The nation's third-largest wireless carrier said it would begin turning the network on for some customers in the middle of next year, with initial coverage available to 123 million customers. The network will be completed, meanwhile, some time in 2013, with coverage potentially reaching 250 million.
A new, super-fast wireless Internet network is reportedly threatening to interfere with GPS signals across the U.S., potentially hindering the navigation systems of airplanes, police cars, and consumer navigation devices. The problem began when officials decided to let Virginia-based LightSquared construct a nationwide broadband network using airwaves very close to those used for GPS signals. Manufacturers of navigation equipment have warned that strong signals from the network could jam GPS signals, interfering with a wide range of navigation systems.