LightSquared Satellite

It doesn't seem like LightSquared is going to catch a break anytime soon. The ailing wholesale wireless company announced on Tuesday that it plans to let go of 45% of its 330 employees. LightSquared initially had a goal of rolling out a nationwide 4G LTE network with hopes of selling spectrum to Sprint, but it came under fire when GPS makers claimed the technology interfered with their networks.

Unfortunately for LightSquared, which long argued that the testing was unfair and performed by those with special interest in the GPS industry, the FCC recently ruled that it would not lift a prohibition against the company's network. The company, which recently claimed that the FCC's decision was harming the American public, said it is laying off nearly half of its firm in an effort to save cash.

"This and other cost savings measures will allow LightSquared to continue to navigate the regulatory process as it works with the appropriate government agencies to find solutions to the GPS interference issue and bring its $14 billion privately funded wireless broadband network to more than 260 million Americans," LightSquared said Tuesday.

LightSquared is not considering filing for bankruptcy, Reuters said. It's unclear how the company plans to sway the FCC in its favor, but LightSquared will lose its contract with Sprint if it doesn't gain official approval to operate its 4G LTE network by March.

[via Reuters]