Tuesday, May 15, 2012

LightSquared Loss Means Less Competition

If only LightSquared could have solved the problems with GPS interference.  If only the FCC actually wanted more competition.  If only more could be done to encourage competition in the broadband and wireless space.  It seems that we have a limited number of choices for broadband and wireless providers.  While not a monopoly, there are clearly only a handful of choices for communication and data.

So it was with great hope that another entrant to the space could shake up the incumbents and provide high speed service to the masses.  But with LightSquared entering Chapter 11 bankruptcy, their time gets less and less.  Can they rebuild or simply sell off assets?   "Bankruptcy '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,' Chief Financial Officer Marc Montagner said in a statement. Reaching agreements with U.S. agencies may take as long as two years, he said in court papers."

For now, there is less competition in the space.  Can LightSquared rise from the ashes or will another emerge to take its place?  For the sake of competition and a free economy, more competition is better for the consumer seeking faster wireless and broadband speeds at lower prices.