September 16, 2011
Worse than Solyndra
Thomas Lifson




Add the name LightSquared to your crony capitalism watch list. The story emerging has elements even worse than the squandering of half a billion dollars on an Obama bundler's venture.

Brendan Sasso of The Hill reports:


LightSquared plans to provide high-speed wholesale wireless service nationwide through a network of satellites and land-based cell towers, but tests earlier this year revealed it interferes with GPS devices, including those used by the military.

One of the major investors in LightSquared is prominent Democratic donor, Philip Falcone.

The Daily Beast reported Thursday that the White House asked Air Force Gen. William Shelton to alter his planned remarks to lawmakers and their staff in a secured briefing about LightSquared.

According to the report, Shelton was pressured to change his testimony to show he supported the White House's policy to expand wireless broadband access and that the Pentagon would try to resolve the GPS interference issues with more testing within 90 days.

The Center for Public Integrity reported Wednesday that LightSquared sent emails to White House aides, at times mentioning its fundraising for Democrats and President Obama.

"We cannot afford to have federal telecommunication policy, especially where it affects national security, to be made in the same way this White House has parceled out a half billion dollars in loan guarantees to the failed Solyndra Corporation, a large political campaign contributor of the president," Turner said, referring to the bankrupt solar firm that received government loans.