NACO Announces That LightSquared Has Filed For Bankruptcy

Nearly a year ago, NACO wrote a comment letter and encouraged you (our members) to speak out about the potential loss of reliable GPS by a private venture. LightSquared was backed by billions of dollars in funding, had plans to build a nationwide 4G broadband cellular telephone network but unfortunately, tests had shown this plan would interfere with GPS signals creating grave safety concerns. The company recently announced that it has filed for bankruptcy after the build-out of the network was halted by the FCC.

We want to thank the 18,000 boaters and other GPS users who wrote the FCC asking the guardian of the nation's airwaves to ensure the future integrity of the GPS signal, and the FCC for listening and acting on our concerns.

Even with the company's May 14 Chapter 11 filing, LightSquared continues to be a challenging adversary, stating, "The voluntary Chapter 11 filing is intended to give LightSquared sufficient breathing room to continue working through the regulatory process that will allow us to build our 4G wireless network." Under federal bankruptcy law, LightSquared would maintain exclusive control for several months over the right to craft a path to emerge from Chapter 11. The company originally asked the FCC for permission to build 40,000 network ground stations across the country. Recent government reports concluded interference issues with the GPS system could not be overcome.