After a string of bad news, LightSquared tried to shore up support for its increasingly controversial national wireless broadband network by announcing Tuesday it has raised millions of dollars in new investment.
The startup said it has raised $265 million in additional investment, bringing in $2.3 billion in capital over the past 12 months. The money came from both current and new investors.
"This latest round of financing signals another endorsement by the financial markets of our business model, and LightSquared's intent to use private capital to build out a new network to meet the growing demand across this entire nation for wireless broadband access," LightSquared CEO Sanjiv Ahuja said in a statement.
A range of tests has determined that LightSquared's planned network, which included both land-based transmitters and a satellite, would interfere with global positioning systems. LightSquared has now scaled back iplans to deploy the network.
Under the newly revised deployment plan, LightSquared says it will hold off on using the spectrum closest to that used by GPS receivers.
But the controversy is far from over, with the GPS industry demanding that LightSquared not use the adjacent spectrum at all. The Federal Communications Commission is now evaluating the interference test results and must approve the plan before LightSquared can move forward.
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