The wireless broadband startup LightSquared filed for Chapter 11 bankruptcy protection on Monday, according to a report from the Wall Street Journal. The company failed to reach an agreement with its creditors to restructure more than $1 billion in debt and was just hours from defaulting. The filing is the latest blow for LightSquared's principle investor Phillip Falcone, who has seen the company's fortunes tumble after its plan for a nationwide wireless broadband network was scuttled over reports of interference from the Global Positioning System industry. The Federal Communications Commission initially approved the planned network, but withdrew its conditional waiver after strong opposition from the military and other groups that rely on GPS technology. Several Republicans have accused the Obama administration of giving LightSquared preferential treatment in return for political concerns; Senate Judiciary ranking member Chuck Grassley, R-Iowa, has promised a full investigation of the FCC's actions in the matter. Beyond any political fallout, LightSquared's failure is a sober reminder to investors of the risks of depending on the government to approve any business plan that involves re-purposing airwaves.
CQ's Ambreen Ali reports Sprint, T-Mobile, the Rural Cellular Association and Public Knowledge have joined forces against the proposed Verizon-cable spectrum deal in the form of a new coalition. The Alliance for Broadband Competition launched Monday with a conference call for reporters, where stakeholders reiterated their concerns the transaction could reduce competitiveness in the wireless and cable markets. The coalition didn't provide any details on what they plan to do next, but said banding together will help highlight the specific concerns they share in common. There are also some differences: T-Mobile opposes the deal outright, while RCA is calling on the FCC to impose conditions that would ensure that Verizon's competitors have access to spectrum and the company complies with roaming and interoperability needs. Confidential side agreements under which Verizon and the cable firms would cross-promote each other's products have drawn the most interest; critics worry the two sides have agreed to stop competing with each other in the markets for pay-TV and broadband. The Justice Department and Federal Communications Commission are both reviewing the transaction. Quotable: “Our view is that it makes no sense to allow Verizon to acquire and warehouse additional AWS spectrum in this band so that they can only hoard more of this scarce resource.” --Kathleen Ham, T-Mobile USA’s vice president of federal regulatory affairs. FCC Back to Full Strength: Ajit Pai and Jessica Rosenworcel were sworn in as members of the Federal Communications Commission on Monday, bringing the Commission back to full strength for the first time since Republican Meredith Attwell Baker left to join Comcast last year. The brief statements issued by the pair should give some indication of their leanings on telecom policy: Rosenworcel, who advised former Democratic Commissioner Michael Copps, emphasized universal access, while Pai hopes to "promote competition and innovation in the communications marketplace."Believed to be the first South Asian FCC Commissioner, Pai also moved quickly to assemble his team. Former FCC General Counsel Matthew Berry will serve as his chief of staff, while Gene Fullano will serve as acting legal adviser. Lori Alexiou will be Pai's confidential assistant and Courtney Reinhard will serve as his legal adviser. Reinhard joins Pai from the House Budget Committee, where she served as counsel and budget analyst to chairman Paul Ryan, R-Wis.