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LightSquared CEO Resigns

Sanjiv Ahuja is being replaced as CEO of troubled LightSquared.

The company announced Tuesday that Ahuja had resigned as CEO. Doug Smith, chief network officer, and Marc Montagner, chief financial officer, will be interim co-chief operating officers until a replacement can be found, according to LightSquared.

The company was dealt a huge blow to its planned wholesale wireless broadband network when the FCC concluded that interference issues with GPS would require the commission to rescind a waiver it had give to LightSquared to use its satellite spectrum -- adjacent to the GPS band -- for higher powered terrestrial transmissions.

Ahuja had been the face of the company's fight for the waiver and criticism of the GPS industry and government pushback.

Philip Falcone, CEO of Harbinger Capital, which owns LightSquared, has been named to the company's board, and was doing the talking for the company in a statement from LightSquared on the changes.

Despite government agencies, the National Telecommunications & Information Administration (the White House's telecom advisor) and the FCC all saying they saw no short-term -- or in some cases long-term -- solution to the GPS interference issue, LightSquared has pledged to soldier on--it has invested billions in the plan.

"We are committed to working with the appropriate entities to find a solution to the recent regulatory issues," said Falcone in the statement. "We, of course, agree that it is critical to ensure that national security, aviation and the GPS communities are protected. I am confident that working together, we can solve this problem and bring the American consumer the lower priced 4G wireless alternative they need and deserve," Mr. Falcone added.