If you thought filing for Chapter 11 bankruptcy was the final chapter in LightSquared's wireless network saga, you'd be wrong. Hedge-fund manager Philip Falcone is back at the FCC's doorstep with yet another proposal, which he hopes might snatch the maligned network from the jaws of GPS interference-related troubles. Two filings placed with the commission apparently outline plans to use its broadband network in a way that it believes won't interfere with GPS signals, along with the 5MHz of spectrum that are known not to cause any issues. Along with the proposed changes, LightSquared is reportedly set to ask for more time to have exclusive rights to propose a reorganization plan. If granted, this could finally mean some progress for the beleaguered project, but with investors worried that money being spent on this could be better-placed back in their pockets, Falcone will have everything crossed, while the FCC deliberates the situation.
Filed under: Cellphones, GPS, Mobile
LightSquared pitches new plans to FCC in attempt to end GPS interference hex originally appeared on Engadget on Sun, 30 Sep 2012 05:04:00 EDT. Please see our terms for use of feeds.
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Sprint's second quarter figures have arrived, showing that the company's billion-dollar gamble on the iPhone isn't working right now. While it sold 1.5 million Apple-branded handsets in the three month period (40 percent to new and postpaid customers), it recorded an operating loss of $629 million and a colossal net loss of $1.4 billion -- compared to an operating loss of $255 million and a net loss of $863 million in the first quarter. Operating revenues of $8.8 billion improved on those in the first quarter by a single percent -- mostly due to higher service fees from its wireless offerings. It's also grown its cash reserves, up from $128 million last quarter to $267 million today, and can point to 442,000 postpaid and 141,000 new prepaid subscribers pushing the company's customer base up to 56 million nationwide -- mentioning that 60 percent of former Nextel users chose to remain with Sprint during the enforced change.
The figures reveal that Sprint's eating around $782 million due to the shutdown of the Nextel platform and a further $184 million to end leases on antenna sites for the moribund network. It's also having to take a hit of $204 million due to its investment into infrastructure partner Clearwire. It's affirmed its $1 billion lending facility, contingent upon purchasing gear from Ericsson to help build its LTE network, which it aims to have installed in 12,000 sites by the end of the year. Of course, that purchase was prompted by the collapse of Philip Falcone's doomed LightSquared project, which caused the Now Network to lose $66 million in cash and its childhood innocence when it comes to trusting other people.
Update: Big Yellow also mentioned that it has no plans to adopt a shared data plan to follow AT&T and Verizon.
Filed under: Cellphones, Wireless, Internet
Sprint's iPhone gamble isn't paying off as 2012 Q2 figures reveal $629 million operating loss originally appeared on Engadget on Thu, 26 Jul 2012 07:17:00 EDT. Please see our terms for use of feeds.
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Sprint has declared that it's no longer Clearwire's majority owner in a move designed to shield the carrier should the worst happen to its troubled bedfellow. While Big Yellow is planning to supplement its own LTE network with Clearwire's TD-LTE backbone, it's looked to distance itself on the business side from a company that finds it very hard to make money -- requiring handouts from Sprint just to stay afloat.
Sprint stops being Clearwire's majority owner originally appeared on Engadget on Mon, 11 Jun 2012 12:18:00 EDT. Please see our terms for use of feeds.
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As expected, May 14th is indeed a dark day for LightSquared. The company has just filed paperwork in order to initiate Chapter 11 bankruptcy proceedings in Manhattan's US Bankruptcy Court, effectively killing its dream of providing a high-speed mobile wireless network to upwards of 260 million people. Not quite a year after Sprint and LightSquared put together an agreement that would ensure 15 years of blissful LTE enjoyment together, Philip Falcone's baby looks weaker than ever. With the Sprint tie-up now void, and over $1.6 billion in debt, there's probably not too many places for LS to turn. The primary hurdle -- one it never could seem to overcome -- was the FCC's outright refusal to believe any of the company's mitigation proposals in relation to GPS interference issues. Despite "profoundly disagreeing" and raising all sorts of chaos in an effort to get its way, LightSquared never did manage to convince the powers that mattered. Where it turns from here is anyone's guess, but it won't be a quiet fall from grace, we're surmising.
LightSquared officially files for Chapter 11 bankruptcy originally appeared on Engadget on Mon, 14 May 2012 14:24:00 EDT. Please see our terms for use of feeds.
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Can't say it's striking us as any sort of surprise, but the seemingly destined-to-fail LightSquared just might be out of options. After getting a high-five from Sprint and plenty of attention for its initiatives in bringing yet another wireless option to America, those blasted GPS interference issues (or "supposed" issues, depending on who you ask) eventually became too much to overcome. According to a breaking report out of The Wall Street Journal, Philip Falcone's venture is seriously teetering on the edge of bankruptcy, as "negotiations with lenders to avoid a potential default faltered," according to the ever-present "people familiar with the matter." Purportedly, the two sides have until 5PM tomorrow to strike a deal that'll keep the firm out of bankruptcy court (if you'll recall, it owes over $1.6 billion dollars to various entities), but given just how far apart these sides remain, its fate seems all but sealed. We'll be keeping an ear to the ground for more, but don't go placing bets on yet another debt-term violation waiver.
WSJ: LightSquared 'preparing' for bankruptcy protection filing, final decision coming tomorrow originally appeared on Engadget on Sun, 13 May 2012 11:11:00 EDT. Please see our terms for use of feeds.
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Carl Icahn is no stranger in this field -- he's been caught tussling with Motorola and bidding Yahoo's board adieu in recent years -- and most recently, he's managed to get caught up in one of the bigger wireless whirlwinds this planet has ever seen. Just months after Icahn swooped in to buy some $250 million in company debt at around 40 cents on the dollar, he has managed to offload that very chunk for 60 cents on the dollar. Not surprisingly, his cash coffers are growing in turn, despite LightSquared's position as a whole looking only marginally less bleak. According to a Reuters report, creditors have agreed to another week-long extension (until May 14th) in order to talk things over with head honcho Philip Falcone. As of now, the startup has around $1.6 billion in debt, and while talks may delay the pain, we're still not getting the impression that the FCC (or anyone else, really) is warming to its propositions. Then again, maybe Facebook can just buy it in an act of charity prior to its IPO.
Carl Icahn unloads his LightSquared debt, creditor talks trudge on originally appeared on Engadget on Wed, 09 May 2012 03:11:00 EDT. Please see our terms for use of feeds.
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In an effort keep the troubled LightSquared from the brink of defaulting on its debt, its founder will step down from the company. While it doesn't look immediate, (people "familiar with the negotiations" are using the word "eventually") it's Philip Falcone's latest attempt to extend a debt-term violation that expires this morning. According to the same sources, if the initial extension is okayed, Falcone and LightSquared's lenders are aiming for a greater period of around 18 months to repay $1.6 billion in loans and pass the FCC's requirements for its network. The company's board is still deliberating on whether to accept the deal, which would stop the company filing for bankruptcy protection. Unfortunately, it looks like those new 4G network dreams just got hazier.
LightSquared founder Philip Falcone to step down 'eventually', attempts to dodge the bankruptcy bullet originally appeared on Engadget on Mon, 30 Apr 2012 06:56:00 EDT. Please see our terms for use of feeds.
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Remember LightSquared? Of course you do, it was the noble yet doomed attempt to build a nationwide 4G LTE network. Days before Sprint dumped it, billionaire Philip Falcone's enterprise defaulted on a $56 million spectrum allocation payment to British satellite operator Inmarsat. Now LightSquared's biggest creditor has offered a stay of execution to give the company time to overcome the regulatory hurdles (we'd suggest praying Julius Genachowski gets another job elsewhere) and get the project back on track. Cynics might suggest it's only been given the breathing room because it's not worth being pushed into Chapter 7 bankruptcy, to which we say shame on you, you naughty cynics.
Continue reading Inmarsat hands LightSquared a lifeline, hopes to get that $56 million back later
Inmarsat hands LightSquared a lifeline, hopes to get that $56 million back later originally appeared on Engadget on Fri, 20 Apr 2012 13:36:00 EDT. Please see our terms for use of feeds.
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Sprint will activate LTE on the 800MHz band in 2014 originally appeared on Engadget on Fri, 13 Apr 2012 18:24:00 EDT. Please see our terms for use of feeds.
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