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New York billionaire Phil Falcone’s beleaguered wireless startup, LightSquared, came out kicking and screaming yesterday over leaked test results questioning the wireless network’s compatibility with costly navigation equipment.
The leaked results were a “distortion of the truth” intended to “prejudice the public,” angry LightSquared executives said during a conference call.
The company’s chief executive, Sanjiv Ahuja, called for an investigation into the leak by the US Department of Defense and the US Department of Transportation.
On Friday, it was reported that a draft of a highly anticipated government-sponsored test conducted on LightSquared’s high-speed wireless service showed “harmful interference” on 75 percent of receivers tested.
The test was requested by the National Telecommunications & Information Administration and slated for official release tomorrow. The results are expected to set the record straight on questions over LightSquared’s compatibility with costly GPS systems, thus determining its ability to carry out its ambitious nationwide wireless service utilizing 40,000 base stations and stretching into hard-to-reach rural areas.
LightSquared Executive Vice President Martin Harriman slammed the conclusion that the results showed a 75 percent rate of interference, calling it a “distortion of the truth.”
LightSquared has been battling fierce opposition in anticipation of its launch from users of global positioning systems, including tractor makers and the US military, who say the service will interfere with their sensitive devices.
Positive test results tomorrow could pave the way for final regulatory approval next spring.
Negative results will prove a big financial blow to Falcone, who has forked over $2.9 billion to support the venture and is the biggest backer.