Michelle Malkin » LightSquared: Obama’s Dangerous Broadband Boondoggle: "As the House prepares to launch official investigations of both Solyndra and LightSquared, investigators need to look closely at exactly how the Obama FCC’s unusual January 2011 waiver for LightSquared promised the politically-connected company a stunning corporate windfall. The waiver gave the company a green light to use its initial satellite bandwidth license for “exclusive terrestrial purposes.” As the Telecom, Media and Finance Associates, Inc. blog explains, this meant that “the spectrum rights would be considered (and valued) as equivalent to terrestrial spectrum, allowing LightSquared to raise additional funds to build out its network. In fact that is exactly what LightSquared then proceeded to do, by raising $586M, secured against its spectrum assets, in February 2011.”
By the company’s own internal estimates and comparisons with other satellite spectrum transactions, the January 2011 waiver boosted the value of LightSquared’s spectrum assets by $10 billion more than two similarly situated mobile satellite service providers that had gone bankrupt. "
Crony capitalism = fascism.
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