LightSquared not such a bright idea

Written by Coalition to Save Our GPS    
Thursday, 27 October 2011

Misstatements hide $10 billion spectrum windfall at expense of taxpayers; LightSquared shirks its responsibility for the billions its plans would cost governments and consumers

Summary: LightSquared repeatedly misstates and rewrites history in order to try to push through its ill-conceived plan to repurpose mobile satellite spectrum (MSS) to build a nationwide terrestrial network. It’s using legal double speak to hide a $10 billion spectrum windfall  – money that should be going to U.S. taxpayers. And, it’s offering up just a pittance towards the billions it would cost federal, state and local governments, as well as consumers, if its plans are allowed to go forward.

LightSquared’s Attempts to Rewrite History: LightSquared has time and again repeated its self-serving claim that it has been authorized for years to build its recently proposed nationwide terrestrial network, and that this alleged prior authorization shifts the burden of avoiding interference to GPS manufacturers and users.  One of many examples is this August 2011, LightSquared statement:

“The public record shows that the Commission first approved rules allowing terrestrial operations in the L-band in 2003. LightSquared received its authorization to conduct terrestrial operations in 2004. LightSquared has had the legal right to build the network it is building today – with the same number of towers and power levels – since 2005. The interference at issue today arises because of sensitivity of GPS receivers to LightSquared’s base stations, operating at the power level authorized in 2005.”

LightSquared’s assertion is flat out wrong. It completely ignores clear statements in prior FCC decisions and rules. In fact:

• LightSquared has never had the legal right to build a nationwide terrestrial network in the satellite MSS band.

• If the FCC had granted rights to use this spectrum for nationwide, terrestrial-only wireless services, it would have been required by law to auction those rights to the highest bidder.

What LightSquared is really trying to do here is rewrite history so that it receives a massive increase in the value of its spectrum over what it paid for it and shift the costs of eliminating interference to GPS users, including federal, state and local governments, and GPS manufacturers.

The Real FCC History and Facts:

• Prior FCC decisions – including the ones that LightSquared seeks to rely on for its claim of “legal right” – made absolutely clear that MSS licenses could not offer the kind of stand-alone terrestrial services that LightSquared has now proposed and the FCC’s International Bureau (IB) conditionally approved.   As early as 2003, the FCC stated categorically that “[w]e do not intend, nor will we permit, the terrestrial component to become a stand-alone service.”[i]

• MSS licensees in the L-band, including LightSquared, have long been on full notice that the FCC would take further action to protect GPS if interference issues arose.  In the same 2005 order that LightSquared says approved its plans, the FCC committed to take actions necessary to “ensure that all FCC services provide adequate protection to GPS.”[ii]  Given this commitment and the clear language of the FCC’s rules, LightSquared could not reasonably rely on these decisions as authorizing nationwide terrestrial use and a shift of the burden of interference to GPS users.

• As recently as the 2010 National Broadband Plan, the FCC reiterated the limited nature of permitted terrestrial operations in the MSS spectrum – these only included operations to fill-in the satellite service footprint.  The FCC explained that “[t]he ATC [ancillary terrestrial component] rules allow MSS providers to deploy terrestrial networks to enhance coverage in areas where the satellite signal is attenuated or unavailable” and that “MSS licensees must integrate MSS and ATC services, including, notably, a requirement that all ATC handsets must have a satellite communications capability.”[iii]

• When the FCC’s IB conditionally permitted LightSquared to provide stand-alone terrestrial services in January 2011, it rejected LightSquared’s claim that it already had the authority to do so.  Instead, the IB waived the “integrate MSS and ATC services” rules in order to grant LightSquared’s conditional approval.

• The International Bureau’s January 2011 conditional order, by waiving restrictions on terrestrial use of the MSS band, also exposed GPS users to massive interference.

• LightSquared has repeatedly claimed that the January 2011 waiver decision had “nothing to do with interference.”  But nothing could be further from the truth.

• By requiring an MSS licensee to integrate any terrestrial offering with its satellite service, the ATC rules effectively require the licensee to operate the terrestrial component in a manner that does not interfere with the satellite component.  This “self-correcting” mechanism provided strong protections to GPS satellite services in the adjacent spectrum.  This is why NTIA told the FCC in January 2011 that LightSquared’s November 2010 proposal, which for the first time proposed terrestrial-only services and use of terrestrial-only handsets, presented a “new interference environment” for GPS.[iv]  The FCC’s January 2011 waiver order removed these practical protections, but still required that LightSquared demonstrate non-interference to GPS.

• LightSquared’s license was – and remains – subject to a general FCC rule that MSS terrestrial operations are not permitted to cause interference to other services, including GPS, and that LightSquared is obligated to cure any such interference.[v]  LightSquared’s contention that GPS users are somehow responsible for mitigating the interference that LightSquared would create is false.  It has no legal right to commence interfering operations or shift the burden of curing interference to GPS users.

Massive Spectrum Giveaway: There are many motivations for LightSquared to seek to rewrite history. One of the less obvious reasons is that if its rewrite of history is accepted as fact and its plans go forward, LightSquared would receive a massive $10 billion increase in the value of its spectrum.

• Because of these restrictions limiting terrestrial use, the value of the MSS spectrum held by LightSquared’s predecessor was much lower than the value of other spectrum – such as Advanced Wireless Service spectrum – in which ubiquitous, terrestrial-only   use was permitted.

• The FCC’s National Broadband Plan recognized that granting terrestrial authority would “step up” spectrum values. And LightSquared’s own consultants, the Brattle Group, this year estimated that LightSquared’s mobile satellite spectrum is worth $12 billion if it could be used for unrestricted terrestrial mobile broadband use, but only $2 billion if limited to satellite uses.[vi]

• LightSquared said that it paid approximately $2 billion for its MSS spectrum rights.  So, all sophisticated market participants understood that LightSquared was not authorized to use the MSS spectrum for nationwide terrestrial use in 2005 or even 2010, when Harbinger Capital Partners, which controls LightSquared, bought out the company’s predecessor.

• If allowed to go forward, LightSquared gets to pocket the $10 billion increase in spectrum value that would result.  Again, it’s important to note that the FCC relied on the extensive restrictions on MSS described in the above “The Real FCC History and Facts” to avoid auctioning terrestrial rights when it authorized “ancillary terrestrial” operations in this spectrum in 2003.[vii]

• LightSquared should not be allowed to use this legal double speak to enjoy massive unjust enrichment while harming GPS users.

Drain on U.S. Treasury: The massive replacement costs for federal government GPS equipment and systems that would be caused by LightSquared’s plans would create a major drain on the U.S. Treasury.  LightSquared is shirking its financial responsibilities, relying on its bogus claim of “legal rights” to terrestrial use to argue that GPS users and manufacturers should pay the bill for eliminating interference.

• LightSquared admits that even under its latest revised plans, hundreds of thousands of high precision GPS receivers used by government and private users would suffer interference.  But it has offered only a pittance, $50 million, to replace or retrofit affected equipment.   And, it is yet to be proven that LightSquared will not also interfere with hundreds of millions of consumer GPS devices, which is why NTIA and the FCC recently called for more testing.

• The head of the Air Force Space Command, Gen. William Shelton, testified at a September 15, 2011 House Armed Services Subcommittee hearing that it would be safe to say that if LightSquared is allowed to proceed with its plans the cost just to the Department of Defense to address interference from the LightSquared network “would be in the b’s – billions of dollars.”

• Add to that the cost of replacing many more billions worth of GPS equipment owned by other federal, state and local government users, as well as businesses, farmers and consumers that would be harmed by LightSquared’s plans.

Massive Federal Government Costs: The costs of replacing GPS in federal government uses could be in the range of $245 billion if LightSquared’s plans go forward, a sampling of department and agency impact assessments shows. And that figure does not include any estimates from heavy government users of GPS such as the Departments of Homeland Security, Agriculture and Energy.

The documents paint a vivid picture of how widespread and engrained the use of GPS, particularly high-precision GPS, is in the federal government and lends insight into the massive nature of the potential costs and disruptions of critical federal government services.  Excerpts of the impact assessments and testimony about the cost of replacing GPS devices and infrastructure in the federal government are available at the Coalition’s website here.

Bottom Line:  All in all, LightSquared’s proposal represents a new low in financial engineering at the expense of the U.S. taxpayer.  Never before has a single company tried to gain so much from our national spectrum resources and pay so little for the collateral damage caused by its plans.

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[i]         Flexibility for Delivery of Communications by Mobile Satellite Service Providers in the 2 GHz Band, the L-Band, and the 1.6/2.4 GHz Bands; Review of the Spectrum Sharing Plan Among Non-Geostationary Satellite Orbit Mobile Satellite Service Systems in the 1.6/2.4 GHz Bands, Report and Order and Notice of Proposed Rulemaking, 18 FCC Rcd 1962, ¶1 (2003).

[ii]        Flexibility for Delivery of Communications by Mobile Satellite Service Providers in the 2 GHz Band, the L-Band, and the 1.6/2.4 GHz Bands, Memorandum Opinion and Order and Second Order on Reconsideration, 20 FCC Rcd 4616, ¶ 70 (2005).           

[iii]       National Broadband Plan, Recommendation 5.8.4., p. 87.

[iv]       Letter from Lawrence Strickling, NTIA, to FCC Chairman Julius Genachowski, January 12, 2011, at 1.

[v]        Section 25.255 of the Commission’s rules states that: “[i]f harmful interference is caused to other services by ancillary MSS ATC operations, either from ATC base stations or mobile terminals, the MSS ATC operator must resolve any such interference.”

[vi]       Brattle Group Report, June 22, 2011, pp. 1 n. 2, 8-9.

[vii]      Letter from Trimble Navigation Limited to Strategic Forces Subcommittee, House Armed Services Committee, October 6, 2011, p. 13, fn 38.

Rep. Hall: GPS a vital national interest

Opening statement from Ralph Hall (R-TX), Chairman, Committee on Science, Space, and Technology

Impacts of the LightSquared Network on Federal Science Activities

September 8, 2011

Good afternoon. Welcome to today’s hearing titled “Impacts of the LightSquared Network on Federal Science Activities.” The United States is the clear leader in precision, navigation, and timing because of its consistent investment in the Global Positioning System. This investment has been protected and reaffirmed by successive Administrations’ support, which has led to one of the greatest technological achievements this nation has ever created. It is one that both government and industry can be proud of and is the gold standard for billions of people around the world. While it is nearly impossible to quantify the exact impact GPS has had on society, it has certainly had an enormous impact on economic productivity, furthered scientific understanding, and modernized our national defense. Some recent reports estimate GPS enables over $3 trillion in direct and indirect economic activity and has created over three million jobs – a fact that should not be overlooked with the President preparing to speak before Congress in a few short hours on the state of our economy.

In addition to its economic significance, the Global Positioning System is also an important aspect of many federal operations and scientific activities. Aerial and satellite imagery, weather forecasting, climate observation, search and rescue, air traffic management, rail transportation, traffic management, vessel navigation, emergency response and mapping, time distribution, seismic monitoring, land surveys, resource management, agriculture, engineering and scientific observations all depend upon GPS. Any potential disruption to GPS, and the science activities that it supports, is of utmost concern to this Committee.

LightSquared has proposed a network to support the President’s challenge to identify 500 megahertz of new spectrum for broadband service. While the President’s goal is certainly commendable, it should not be accomplished by destroying existing systems and applications.

As the President’s own National Space Policy states, the United States must “maintain its leadership in the service, provision, and use of global navigation satellite systems (GNSS),” and “[i]nvest in domestic capabilities and support international activities to detect, mitigate, and increase resiliency to harmful interference to GPS.”

The purpose of this hearing is to examine the potential impact of the LightSquared network on Federal science activities. In doing so, we hope to ensure that all of the affected agencies are aware of the potential issues, have communicated those concerns effectively, are identifying potential mitigation strategies, and are calculating the costs associated with those mitigation strategies. In preparing for this hearing, we have seen varying degrees of preparation by agencies. Some have done the expected due diligence and some clearly have not.

Although the FCC has stated that it will not allow LightSquared to begin commercial service without first resolving the interference issue, nothing actually prevents the FCC from moving forward at this point. Since the testing that was conducted this spring and summer, LightSquared has put forth a modified plan. Unfortunately, no testing has been done on this modified plan. I agree with the agencies before us today that additional testing should be required before the FCC allows LightSquared to begin commercial service.

Ensuring that GPS is protected is a vital national interest. Its economic impact is clear, and its utility to science is unquestionable, but what is also important is the real impact on lives. Last month the FAA announced that LightSquared’s previous proposal would result in billions of dollars of investment lost, a decade of delays to ongoing projects, a cost impact of roughly $72 billion, and almost 800 additional fatalities – and that is just one Administration. Compromises to GPS would also benefit foreign systems and threaten U.S. leadership. As we have recently seen, dependence on Russia for access to the International Space Station has already compromised U.S. interests. Reliance on Russia’s GLONASS system, China’s COMPASS system, or Europe’s GALILEO system for precision, navigation, and timing would be just as costly.

We have to find a way to open up more spectrum for broadband, but not at the expense of GPS.

This is, however, a two way street. GPS users and agencies also have to be mindful that developing applications outside of their spectrum is dangerous and ripe for conflict, even though previous there were no problems.

_______________________________

And if that wasn't compelling, consider these...

HR 2596. Commerce, Justice, Science Appropriations Act

Committee Report 112-169:

Spectrum interference issues.—The Committee is aware that NTIA and the Federal Communications Commission (FCC) are in the midst of a regulatory process with respect to the Global Positioning System and that a technical working group is reviewing potential interference issues. NTIA is directed to report to the Committee following completion of the technical working group activities, but no later than August 1, 2011, regarding the discoveries of this technical working group and the scientific steps necessary to address any potential interference concerns.

HR 2434. Financial Service Appropriations Act

Section 633

None of the funds made available in this Act may be used by the Federal Communications Commission to remove the conditions imposed on commercial terrestrial operations in the Order and Authorization adopted by the Commission on January 26, 2011 (DA 11-133), or otherwise permit such operations, until the Commission has resolved concerns of potential widespread harmful interference by such commercial terrestrial operations to commercially available Global Positioning System devices.

Committee Report 112-136:

The Committee is aware of concerns related to possible interference to Global Positioning System (GPS) devices due to terrestrial broadband service. The Committee remains engaged on this issue and awaits the final report by the Technical Working Group.

HR 1540. National Defense Authorization Act, 2012

Committee Report 112-78:

The committee is aware that the Federal Communications Commission (FCC) issued a conditional order to a commercial communications company on January 26, 2011, authorizing it to provide broadband voice and data communications services that potentially interfere with GPS. The committee recognizes that the Armed Forces are highly dependent on GPS capabilities and services. The committee believes that any space-based or terrestrial-based commercial communications service that has the potential to interfere with GPS should not receive final authorization to provide service within the United States by the FCC unless and until the potential interference with GPS is resolved. Such commercial services are planned to be transmitted from 40,000 land-based towers across the United States. The committee understands, based on information received from the Air Force, that the signal strength of such service is estimated to be one billion times more powerful than the GPS signal. Though the commercial service would broadcast on a frequency adjacent to GPS, it may still overwhelm GPS receivers, potentially causing a denial of service for millions of users in the United States relying on GPS navigation and timing services. Such users included the military, emergency responders, maritime and aeronautical emergency communication systems, banking transactions, air traffic and ground transportation systems, and myriad commercial applications. The committee understands that the Deputy Secretary of Defense sent a letter to the Chairman of the Federal Communications Commission on January 12, 2011, highlighting the "strong potential for interference to . . . critical national security systems," and "strongly recommend[ing] deferral of final action on [the FCC order and authorization] until the proper interference analysis and mitigation studies can be conducted."

HR 2112. Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 2012

Committee Report 112-101:

GPS Interference.—The Committee recognizes that the use of the Global Positioning System (GPS) is critical to USDA‘s mission, including natural resource monitoring, forest firefighting, law enforcement, and research. In addition, precision agriculture would not be possible without GPS. It is estimated that U.S. farmers and ranchers have invested more than $3 billion in GPS technologies.

The Committee is aware of a decision by the Federal Communications Commission that may disrupt the use of GPS, causing significant problems for USDA and our Nation‘s farmers and ranchers. The Committee directs USDA to ensure the FCC is aware of these concerns and to work with other Federal agencies, such as the Department of Defense and the Department of Transportation, to address them.

New Technology Could Kill Fullerton Commuters

The OC Register reported yesterday that the Federal Railroad Administration has granted Caltrans with $55-million to construct, among other things, a third rail to connect Fullerton and Commerce. 

The Register's report also includes an important but completely misunderstood issue.

And $13.5 million will fund a global-positioning-based system for much of the line between Moorpark and San Onofre. Also called Positive Train Control, the system prevents collisions and derailments. The Federal Rail Safety Improvement Act makes the system mandatory by 2015.

“The implementation of the Positive Train Control will improve safety for our passengers,” said Laura Scheper, a spokeswoman for the Orange County Transportation Authority, which oversees Metrolink service in the county.

So what's the problem?  A new company known as LightSquared.  Their use of a nearly identical frequency as that used by global positioning systems (GPS) causes GPS receivers to fail.  

I have expressed serious concern regarding the Federal Communications Commission (FCC) granting LightSquared, LLC conditional approval to build a nationwide 4G-LTE wireless broadband network (FCC File No. SAT-MOD-20101118-00239). Early testing by GPS technology leaders, Garmin and Trimble Navigation, demonstrated that LightSquared’s technology would likely interfere with Global Positioning System (GPS) receivers, degrading their performance in the best case scenario and completely jamming GPS receivers in the worst case scenario.

The Department of Defense, FAA, DHS, NASA, DOI, DOT, DOC, and the Professional Land Surveying and Engineering professions, have all expressed serious reservations in regards to this plan by LightSquared, LLC to build 40,000 ground stations in the U.S. that could cause widespread interference to GPS signals.

The National Marine Manufactures Association said in a letter to the FCC that "they are especially concerned with the apparent lack of concern shown in the Technical Working Group report to the effect of the LightSquared proposal on existing devices."  The July 29, 2011 letter goes onto to say that "it is notable that the testing that was done by the Technical Working Group did not include recreational marine applications."

This network of ground stations will transmit signals within the L-band frequency immediately adjacent to the GPS L1 frequency at more than one billion times the strength of the low-power GPS signal from space!  Furthermore, each mobile phone using LightSquared’s wireless service would potentially become a portable GPS jamming device by jamming GPS receivers in its immediate vicinity.

The result of having GPS-guided trains AND LightSquared means a nearly certain disaster is on the horizon!

LightSquared has openly admitted to the interference after conducting their own tests! "Initial tests of LightSquared’s terrestrial base stations, however, have shown that these transmissions can cause interference issues for GPS receivers."

Telecommunications lobbyists acknowledge that "it is likely there will be interference issues that will need to be solved".

I wrote a letter to the FCC and Congressman Royce and have not heard back from either.  I'm not holding my breath...