Things are looking very grim for the spectrum company, Lightsquared. Since they were not able to land FCC approval for their new network because of GPS interference problems, several companies have been dropping them as a client. One of their biggest partners, Sprint is the latest casualty. Sprint just announced that they will be officially terminating their agreement with Ligtsquared. They have even returned $65 Million dollars in initial pre-payments to Lightsquared.

Despite this huge setback for the company, Lightsquared still may have a possibility of digging their way out of the grave. This report further shares that Lightsquared plans to use these returned funds to mount a legal offensive against the FCC. They have secured legal counsel that is well-versed in fighting government agencies, Theodore Olson and Eugene Scalia. Because of this, Sprint noted that they would be open to future collaborations if Lightsquared was able to deal with their many problems.

What do you guys think? Obviously, Lightsquared is a sinking ship, but can it be repaired before it is too late?

Source: TechCrunch