Thursday, February 16, 2012
How did this happen? An investor spends billions to build a digital network only to discover that his radio spectrum overpowers GPS and the Federal Communications Commission axes the network. The size of the failure is so stunning that one wonders who was talking to whom throughout the development. Predictably, LightSquared says it will slog on. It probably won't for long. A massive write-off and closed shop are imminent. From a PR perspective, it appears that LightSquared ignored or denied that a large part of the public would be inconvenienced by its proposed service. The company took a "not-my-problem" stance to the GPS issue until the FCC forced its hand. Call that arrogance or willful ignorance. Either way, it is a classic example of a company that wasn't listening to those with the real power.