LightSquared announced Tuesday that it has raised $265 million from new and existing investors. The company said it will use the $265 million for “general corporate purposes,” including construction of its 4G-LTE network.
These numbers indicate that investors have faith in the company and its satellite and broadband network, despite the criticism LightSquared has faced over its network’s interference with GPS satellites.
LightSquared’s broadband network faces strong opposition from the GPS industry. While LightSquared has said that it has a new plan that focuses on a lower band of spectrum and is optimistic that any interference issues can be resolved, members of the GPS industry say they do not think they can reach a compromise.
“There is no existing technology that solves this interference, only unproven claims of hypothetical future fixes,” Jim Kirkland, vice president of GPS firm Trimble, told The Washington Post.
Hedge fund investor Philip Falcone, who created the startup, has put about $3 billion into the company through his firm, Harbinger Ventures, The Washington Post reported. UBS and JP Morgan put $586 million into the firm this year. The company said that it has raised $2.3 billion overall this year.