Scandal Watch: LightSquared partner ($267 million fed loan recipient) goes under; stonewalling at NTIA

By Michelle Malkin  •  October 5, 2011 03:15 PM

Who knew three years ago when Culture of Corruption came out that we’d be up to our eyeballs in scandal today.

Well, I did!

Two weeks ago, I gave you a primer on Obama’s dangerous LightSquared Broadband Boondoggle.

A few, new key developments:

*Looks like the feds are playing their usual disclosure-ducking games. GPS World Magazine exposes the latest stonewalling:

The National Telecommunications and Information Administration (NTIA) has responded to a request under the Freedom of Information Act, filed on September 6 by GPS World magazine, saying it cannot or will not release documents prepared by other government agencies, outlining the operational and economic impacts of a LightSquared terrestrial signal on GPS services. GPS World has talked with two independent sources who confirm that the U.S. Departments of Defense, Homeland Security, Agriculture, Interior, Transportation, and two other agencies wrote such letters to the NTIA in the June-July 2011 timeframe, in response to a federal tasking by the National Coordination Office for Space-Based Positioning, Navigation, and Timing.

The NTIA essentially shrugs its massive shoulders and says “I don’t know what you’re talking about.” Such conduct is consistent with previous characterizations of the NTIA by a participant in the process, who stated in late August that the NTIA had not forwarded any of the letters to the Federal Communications Commission (FCC), which is weighing the matter. This source characterized the NTIA as “sitting on them” as part of a “massive bureaucratic game,” and further asserted that Senator Charles Grassley of Iowa and other Congressional representatives are getting “stonewalled” by the FCC in their efforts to investigate the matter.

*LightSquared is threatening to sue the FCC:

Start-up wireless carrier LightSquared threatened litigation if the Federal Communications Commission does not clear it to operate a network of up to 40,000 cell towers the GPS industry claims will interfere with GPS receivers.

Jeff Carlisle, LightSquared’s vice president of regulatory affairs and public policy, told reporters at a briefing Monday that any interference with high-precision GPS receivers from the company’s planned network results from the fact that those receivers “look” into the adjacent frequency band.

In a letter to FCC Chairman Julius Genachowski Monday, Carlisle said that GPS manufacturers have ignored standards developed by the Defense Department to block reception of transmissions from adjacent bands.

Martin Harriman, vice president of ecosystem development and satellite business for LightSquared, said that manufacturer Javad GNSS has developed a signal filter that will mitigate interference problems with high-precision GPS receivers.

Last month, the company said it planned to market filters for high-precision receivers for positioning applications by November 2011 and filters for precision timing devices by March 2012. Harriman said the filter technology developed by Javad “could possibly be used by other manufacturers.”

*OpenRange, a LightSquared partner here in my home state of Colorado is, undergoing massive layoffs after raking in nearly $270 million in federal loans. Surprise, surprise:

Open Range Communications, a privately held WiMAX operator with service in more than 140 markets spanning more than a dozen states, announced it will lay off the bulk of its employees and will stop accepting new customers. The company will continue providing service to existing customers. Further, the company’s CEO, Bill Beans, resigned last night; the company’s CFO Chris Edwards appears to be heading the company now.

Open Range will eliminate around 122 positions, leaving around 48 workers left. Those positions being eliminated include sales representatives, sales managers, sales support and other positions. Essentially, the company is laying off all positions in its markets outside of its headquarters in Greenwood Village, Colo.

The announcement was made this morning in a series of conference calls with employees. A company spokesman did not return requests for additional information.

Open Range in March inked a deal with LightSquared whereby it plans to transition its operations from the spectrum it leases from Globalstar to LightSquared’s planned LTE network. However, LightSquared’s network rollout has been hampered by concerns regarding how its planned network could interfere with GPS receivers.

Interestingly, Open Range was awarded a $267 million loan from the Rural Utilities Service of the U.S. Department of Agriculture, and the company scored $100 million in equity from One Equity Partners, the private equity investment unit of JPMorgan Chase. It’s unclear exactly how the company will address those finances.

GigaOm adds:

We covered the company in 2008 when it was approved for a $267 million loan from the United States Department of Agriculture’s Rural Development Utilities Program to provide wireless broadband to 500 communities in 17 states. It was the largest loan in USDA history at the time, and Open Range also scored an additional $100 million investment from One Equity Partners, the private equity arm of JPMorgan Chase & Co. It began offering WiMAX service in 2009.

The company was in the news earlier this year for reaching a deal with LightSquared, the non-network that the government is hoping will deliver a competitive form of wireless broadband. LightSquared has its own problems that are coming back to haunt the government, and now the reported failure of Open Range may end up giving the U.S. and the FCC another black eye as it tries to deliver acceptable broadband to rural America.

More government loans to nowhere

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Posted in: Corruption,Politics

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Comments


  1. #1
    On October 5th, 2011 at 3:22 pm, Craig said:

    Green energy!

  2. #2
    On October 5th, 2011 at 3:27 pm, Flyoverman said:

    There is a proportional relationship between the amount of money a government has and the degree of corruption in that government.

    It is similar to the old axiom “Power corrupts and absolute power corrupts absolutely.”

    More money, more power; more power, more corruption.

  3. #3
    On October 5th, 2011 at 3:42 pm, RedDog said:

    So many scandals, so many crimes, what to do, what to do…?

  4. #4
    On October 5th, 2011 at 3:44 pm, Truesoldier said:

    Last month, the company said it planned to market filters for high-precision receivers for positioning applications by November 2011 and filters for precision timing devices by March 2012. Harriman said the filter technology developed by Javad “could possibly be used by other manufacturers.”

    So in otherwords, Lightsquared’s towers create a problem with current GPS so they are marketing a filter other manufactures can buy to fix the problem Lightsquare created.

  5. #5
    On October 5th, 2011 at 3:45 pm, rocketman said:

    ***
    The Patrona has been way out in front of the pack in exposing these scams when they first get started. Like the old joke goes, “There are 3 types of people in the world. Those who make things happen. Those who stand by and watch things happen. And the clueless who say–What Happened?”.
    ***
    Same game plan. Waste taxpayer money on some unneeded task. With very little payoff to the end users. And with lots of payoffs and kickbacks to the Corruptocrats and Corruptocans who profit at our expense.
    ***
    Each job “created or saved” was probably worth millions of dollars. And the few rural homes and ranches that needed Internet and other data services probably already had useable dial up at worst–and maybe better bandwidth service from the phone or cable company. And serious users far from phone and cable lines probably bought 2 way satellite system services if they really needed it and could pay for it.
    ***
    Any guesses on how many homes were provided new service? Or on how much each new service cost the taxpayers?
    ***
    Deja Vu all over and over and over again. Socialists / marxists / statists / marxists / communists (and crooks!) just “hepping out” the poor people. With someone else’s money.
    ***
    John Bibb
    ***

  6. #6
    On October 5th, 2011 at 3:46 pm, Truesoldier said:

    On October 5th, 2011 at 3:42 pm, RedDog said:
    So many scandals, so many crimes, what to do, what to do…?

    With this many scandals (and more coming daily) it will be a wonder if anyone can get to the bottom of any of them.

  7. #7
    On October 5th, 2011 at 3:54 pm, DonkeyHoatie said:

    The National Telecommunications and Information Administration (NTIA) has responded to a request under the Freedom of Information Act, . . ., saying it cannot or will not release documents Telecommunications and Information prepared by other government agencies, outlining the operational and economic impacts of a LightSquared terrestrial signal on GPS services.

    Leave it to a federal agency to not produce the very thing its name says it should produce. Kinda like the Dept of Energy that produces no energy and the Dept of Education that lowers education standards.

    As a side note, the very name “National Telecommunications and INFORMATION Administration” sounds frighteningly Orwellian. Or perhaps that it should be run by Comical Ali.

  8. #8
    On October 5th, 2011 at 3:56 pm, sb36695 said:

    I WANT SOME OBAMA STASH!

  9. #9
    On October 5th, 2011 at 4:02 pm, babiesgrandma said:

    Craig said:
    Green energy!

    More like Gangrene energy.

  10. #10
    On October 5th, 2011 at 4:04 pm, babiesgrandma said:

    rocketman said:
    And the clueless who say–What Happened?”.

    Ya talkin’ ’bout Home Depot Joe? He don’t know nothin’. Just ask him about Van Jones, et al.

  11. #11
    On October 5th, 2011 at 4:09 pm, J S Ragman said:

    So in otherwords, Lightsquared’s towers create a problem with current GPS so they are marketing a filter other manufactures can buy to fix the problem Lightsquare created.

    It’s like the Three Stooges episode where the boys were exterminators, and they went around infesting houses with mice, ants, etc. before offering their services.

    Yep, life does imitate art.

  12. #12
    On October 5th, 2011 at 4:12 pm, AlohaGuy said:

    awarded a $267 million loan from the Rural Utilities Service of the U.S. Department of Agriculture,

    Where’s my loan? I have plans for a 4G network that runs on your garage door opener frequency. Sure, your garage door will open and close randomly, but that’s a small price to pay to allow bill collectors to robo-call you. Can I get an Obamacare waiver too? I’ll be laying off all my employees before they try and get any healthcare anyway, so it’s all good.

  13. #13
    On October 5th, 2011 at 4:19 pm, J S Ragman said:

    Last night on O’Reilly, that idiot Alan Colmes was railing on about all these loan guarantees;

    “OK, Solyndra, Solyndra, I’m so tired of hearing about that one company that’s had financial difficulties with the taxpayers money. Come on O’Reilly, what else ya’ got?”

    That guy combines willful blindness with doctrinaire stupidity at an amazing level.

  14. #14
    On October 5th, 2011 at 4:32 pm, stillontheroad said:

    It interferes with GPS but all of you that know – GPS is used for timing as well as frequency stability for all those little ole Cell Towers you see – especially CDMA. How this got passed with no over sight is my big question

  15. #15
    On October 5th, 2011 at 4:34 pm, Rogue Cheddar said:

    Pete the Killer: [points] By the way, I took care of that thing for ya

  16. #16
    On October 5th, 2011 at 4:41 pm, peteee said:

    actually, this is not green energy, but it looks like pie in the sky technology. this whole network was based on nobody figuring out the new network would interfere with gps, until it was too late.

  17. #17
    On October 5th, 2011 at 5:02 pm, SpeakEasy said:

    Why, in the name of Zeus’s butthole, is the Department of Agriculture dishing out taxpayer funds for these boondoggles? Does the network run on biodeisel? Are the antennae mounted on cornstalks? The solution to all our problems is GUTTING THE FEDERAL GOVERNMENT!

  18. #18
    On October 5th, 2011 at 5:10 pm, RedMike said:

    J S Ragman #13 ….Which guy O’rielly or Colmes they are both of the same mind!

  19. #19
    On October 5th, 2011 at 5:18 pm, AlohaGuy said:

    Huh – the magical disappearing post.

  20. #20
    On October 5th, 2011 at 5:34 pm, letget said:

    If true, this six minute video might give some insight on what is happening? Something to think about, IMO.

    > http://www.therightscoop.com/open-thread-grinding-america-down/
    L

  21. #21
    On October 5th, 2011 at 6:03 pm, Marshall_Will said:

    The disruption to the existing GPS system could prove disastrous. Many newer, modern tractors are steered by GPS.

    Kind of technical but from what I understand it keeps the rows straighter, burns less fuel so it’s more efficient AND increases Yield Per Acre!

    A video shows the steering wheel is in a constant state of correction. Without this state of the art access ( and ever rising fuel prices ) huge swaths may become unfarmable.

    http://www.youtube.com/watch?v=MenBNqc8-HA

    Wherever Limon, CO is?

  22. #22
    On October 5th, 2011 at 6:23 pm, SignPainterGuy said:

    M_W,

    I`ve seen docs. on GPS-controlled farm equip., fascinating stuff. It amazes me how accurate it is. Obviously it uses a more expensive “band” than your hand-held gps unit which is accurate only to 30′ or so !

    I`ve seen bulldozers with sat. up-links on ea. end of the blades. That has to be accurate to a very few millimeters !

    Yeah, someone must get to the bottom of this and put a stop to what LightSquared is doing before the whole gps system is rendered effectively useless.

  23. #23
    On October 5th, 2011 at 6:26 pm, SignPainterGuy said:

    I also find it interesting that Light”Squared” uses a cube in their logo. That is an illustration of “volume” while a square is a illustration of “area” ! Just strikes me as odd somehow !

  24. #24
    On October 5th, 2011 at 6:31 pm, Marshall_Will said:

    SPG,

    All I understand about it is from an Annual Report perspective. Remember, I’m Mr. Analog!

    But you’re right, look at road pavers. Start off 3/8″ and by the time you’ve gone a mile it’s taken an extra load of blacktop.

    Of course it’s our fault. If the whole world just did like Dark-Squared TOLD us to do things would be great.

  25. #25
    On October 5th, 2011 at 7:10 pm, sonerai32645 said:

    I suggest we buy new maps and a compass, just incase this situation really goes south.
    still in Korea
    ps maybe the airlines should start nav school again. I am a pilot, but I have always been a map,compas and clock guy. Yes the plane I rent has gps and sometimes I get lazy,LOL

  26. #26
    On October 5th, 2011 at 7:38 pm, BK said:

    40,000 cell towers the GPS industry claims will interfere with GPS receivers.

    Then fix the cell towers. They got enough taxpayer money for this.

  27. #27
    On October 5th, 2011 at 9:48 pm, Flar said:

    Why … is the Department of Agriculture dishing out taxpayer funds for these boondoggles?

    This program developed out of programs started in the ’30s to bring electricity and telephone service to rural areas. Since these areas were mostly farming, the programs ended up in Agriculture

  28. #28
    On October 6th, 2011 at 9:16 am, GraniteMan said:

    Do you get the feeling that no one cares except us hill billies out here in fly-over land?

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