Time to Stick a Fork in LightSquared? | Jeff Kagan Tech Analyst

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What about the growing industry problem they were trying to solve? Will no LightSquared mean the industry is heading for trouble?

     

Jeff Kagan

Tech Analyst

     

We have watched startup LightSquared take a bold position to solve some of the wireless industries growing spectrum problems. They would give all the smaller wireless networks, and even some larger ones, spectrum to provide wireless data services.

This is important because the wireless industry is in transition over the last four years. It used to be almost 100% voice. It is changing.

Within the next few years it is expected to be 97% wireless data and only 3% voice. That is the incredible transformation the industry and all the competitors are facing.

Currently only the big carriers like Verizon Wireless and AT&T Mobility can reach into their deep pockets for the billions of dollars it takes to acquire spectrum from other companies.

This is good for Verizon and AT&T, but what about the rest of the industry. Competition keeps prices low and innovation high and customer service in line.

Without competition the industry will start to experience serious problems.

Of course Verizon and AT&T don’t care since they will be the big guys. It’s all the smaller carriers that need access to spectrum.

That is what LightSquared wants to provide. Great idea. Great plan. Unfortunately they hit a roadblock with the GPS industry.

Will LightSquared ever become real?

Sprint Nextel just gave them an extension of one more month to try and get clearance from the FCC to operate the network.

LightSquared may be a needed idea, and it may be faulty in the details, but the problem they are trying to solve is real and growing critical.

Are we seeing the end of this company begin to take shape. As unfortunate as it is, I think the writing is on the wall.

It seems Phil Falcone will take a giant financial hit, but in the end he can sell the company and probably make money.

What about the wireless industry? We need a solution like this. Without this becoming a real solution I see capacity shortages coming in the next few years as wireless data grows to 97% of all the traffic on the wireless networks.

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Please attribute to Jeff Kagan, Tech Analyst with www.jeffKAGAN.com

If you would like to discuss, call me at 770-579-5810 or send an email to jeff@JeffKAGAN.com

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Jeff KAGAN| Tech Analyst www.jeffKAGAN.com

Analyst sharing perspective on the changing industry for 25 years

~ Also Columnist, Author, Consultant, Speaker
~ Column http://www.ectnews.com/perl/section/jeff_kagan/

Phone 770-579-5810 Email jeff@jeffKAGAN.com

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