04.01.10

Survivor New York?

Posted in LightSquared, Operators, Regulatory, Spectrum at 1:32 am by timfarrar

Is Harbinger’s motto “Outwit, Outplay, Outlast“?

It surely wasn’t a surprise to Harbinger’s lawyers (who employ Tom Tycz, former Chief of the Satellite Division in the FCC’s International Bureau) that AT&T has challenged the conditions forbidding SkyTerra from leasing spectrum to AT&T and Verizon and restricting the amount of ATC traffic from those two operators.

Meanwhile, Harbinger’s announced intention to build a competing network has clearly forced AT&T to take ATC a lot more seriously than had apparently been the case in recent years. Presumably if the conditions were invalidated, then it might become harder for the FCC to resist any subsequent transaction with AT&T or Verizon. Thus Harbinger might conceivably foresee a profitable way out without having to take the risk of building an LTE network and actually having to attract customers.

On the other hand, if this project gets tied up in a legal and political battle for the next several years, then we might instead see Harbinger losing its investment and being voted off the island.