Ligado Networks Files for Bankruptcy
Satellite communications firm Ligado Networks Inc has reportedly declared bankruptcy after its attempt to create a new generation wireless network was not successful. The firm intended to leverage its satellite spectrum for the 5G and IoT service but there existed legal and technical barriers.
Ligado had received the nod from the Federal Communications Commission (FCC) to undertake the above plans in 2020. Nevertheless, resistance from the Department of Defense, aviation industries and GPS corporations that impacted the firm on the grounds that signals from their GPS systems might be interfered stagnated the firm. The backlash halted Ligado’s plan of deploying its network and gaining the backing of the industry.
As with many other fields, financial constraints also played a big role in the changes. Ligado, which was controlled by such market giants as JPMorgan Chase and Cerberus Capital, accumulated billions in debts and did not manage to earn money for the development of services, let alone attract clients.
The Chapter 11, therefore, is aimed at enabling Ligado to reorganise its debts and contemplated courses of action. The case also paints a continued picture of spectrum use, and challenges involved in operating in a market with formidable telecommunication giants. Ligado’s failures demonstrate how development of new technologies in the United States often threatens important systems such as GPS.
