LightSquared might exchange its wireless airwave licence with that being held by the US Department of Defense in an effort to salvage all its investment which may get jeopardized following FCC's announcement that it will block LightSquared in moving ahead with its wireless plans.
LightSquared had to face much criticism from legislators, Defense Department along with farm equipment and Global Positioning System makers because the network signals of LightSquared were interfering with the signals for GPS.
The company came up with the latest strategy just a day after the Federal Communications Commission (FFC) officially disclosed that they might revoke a waiver which will allow this network operation. This has been decided keeping in view the concern for GPS interference.
The airwaves of Defense Department works on that frequency which operates at a safe distance from the GPS signals, thus reducing possibility of any interference. The department uses these particular airwaves for aircraft testing.
For the time being none of the sides have given any official statement and it is not yet clear who needs to approve the deal, reported the Wall Street Journal.
According to the sources close to the matter, LightSquared has appointed Moelis & Co. the boutique investment bank as restructuring advisor.
[Source: San Francisco Chronicle]