LightSquared network killed at least for now

There have been a lot of corruption issues with the Obama administration pushing for the LightSquared project. Well, the case seems to be dead for now (see here).

But LightSquared isn't giving up.

The lawyers are investigating the merits of a potential suit against the Federal Communications Commission, which this week rejected LightSquared's plan for a broadband network, and the Global Positioning System industry. GPS companies and Defense Department officials have argued that LightSquared's signal could interfere with their networks.

Mr. Falcone, who runs Harbinger Capital Partners LLC, is betting that telephone companies will face shortages in broadband capacity in the future, forcing them to pay providers like LightSquared a premium to use their networks. But if the recent FCC decision prevents LightSquared from launching operations, the value of investment may boil down to the strength of the company's legal claims. . . .