Grassley Concerned with FCC’s LightSquared Review, FCC Communications Requested

Sen. Chuck Grassley, R-Iowa, has some real concerns with the FCC’s work on allowing LightSquared to begin service, potentially at the expense of important GPS services, he said in a letter to FCC Chairman Julius Genachowski dated April 27. Grassley, ranking member of the Judiciary Committee, said he was “dismayed” to learn of the “accelerated timetable” the FCC used when considering LightSquared’s waiver application that allows the company to provide terrestrial wireless service. The letter to Genachowski was recently made public.

The FCC should have been especially cautious given the news that Phillip Falcone -- who runs Harbinger Capital Partners, which owns the majority of LightSquared -- was under investigation by the SEC over an improper $113 million transaction, said Grassley. “Given this curious set of circumstances and in order to ensure confidence in the FCC’s adjudication procedures,” Grassley asked the FCC to send him by May 10 all communications between the FCC and LightSquared, Harbinger and Falcone. He also asked for all communications between FCC employees regarding LightSquared, Harbinger and Falcone and all communications between the agency and the White House on the same topics. Grassley said he hasn’t received the requested information. The FCC declined to comment.

"This project is controversial for two reasons,” said Grassley in an emailed comment. “One, there are questions about whether it will block GPS technology, which is important to agriculture and other industries. Two, the principle behind this project is said to be under investigation by another agency for his financial dealings. The FCC’s fast-tracking of this project raises questions about whether the agency did its due diligence. I'm looking for answers to these questions so taxpayers can be assured that the government is treating public property the way it ought to be treated. So far, the FCC hasn’t provided any of the information I've requested. It should in the interest of transparency in doing the public’s business."

LightSquared said it welcomed the Congressional interest in its service. “We are tremendously excited over the prospect of providing a new, competitive and innovative wireless broadband network to the marketplace, and it is important for Congress to take an interest in bringing more competition and innovation to the market as well,” said Jeff Carlisle, LightSquared executive vice president of regulatory affairs. “We respect Sen. Grassley’s interest in ensuring this is done properly, and we believe that Congress and the FCC, working together, can help bring more innovation and competition to the wireless market in a way that works for consumers and competitors alike.”

The FCC International Bureau in January granted LightSquared a waiver of mobile satellite service rules that require devices to be able to connect over satellite networks. Grassley joins a growing number of lawmakers that have voiced worries with the service. Senators Pat Roberts, R-Kan., and Ben Nelson, D-Neb., recently sent a “Dear colleague” letter to the rest of the Senate asking for support in pushing the agency to more closely oversee LightSquared’s GPS interference testing (CD April 18 p3). House members have also said they are watching the issue closely (CD April 4 p1).