LightSquared Update - Leaked Test Results, Lawsuit Expected 12/12/11
New government tests show wireless start-up LightSquared's network could knock out a "great majority" of GPS devices, according to a congressional aide who has seen a draft government report on the tests.
Preliminary data from recent government and industry tests of LightSquared's network suggest that the start-up hasn't solved concerns that its network would knock out a large number of personal or military GPS devices, the report said, according to the aide.
The results were to be announced on Dec 14, but got out early. The laboratory testing was performed for the National Space-Based Positioning, Navigation, and Timing (PNT) Systems Engineering Forum found that 69 of 92, or 75 percent, of receivers tested “experienced harmful interference” at the equivalent of 100 meters (109 yards) from a LightSquared base station. Martin Harriman, executive vice president at LightSquared stated via e-mail that the company is “outraged by the illegal leak of incomplete government data. This breach attempts to draw an inaccurate conclusion to negatively influence the future of LightSquared and narrowly serve the business interests of the GPS industry.”
In other news, The Hill reports:
Federal regulators notified Harbinger Capital, the primary investor in wireless firm LightSquared, that they are considering suing the hedge fund over potential violations of securities laws.
- The Hill