A better solution
I have a better solution. If LS wants to build a network, they need to get out there, find the money, and buy the spectrum they need. Perhaps they can sell the holdings they have now to partially defray the cost.
LS gambled on getting spectrum on the cheap, and they lost. Time for them to suck it up, lick their wounds, and do it the right way this time.
LightSquared is attempting to do it the "right way" this round by getting its Congress Critters to weigh in on reallocating spectrum. I'm honestly surprised this tactic wasn't worked from the beginning.
This isn't working because the spectrum they bought dirt cheap isn't worth anything. Nobody wanted it in the first place -- that's why it was cheap. Now, they cannot MAKE someone take it.
LightSquared doesn't need anyone to "take" the spectrum allocation. I imagine the allocation will be sold off for pennies during bankruptcy proceedings or else returned to the FCC for re-purposing.
My response was aimed at LightSquared leveraging Congressional representation to encourage decision makers to reallocate useful spectrum to LightSquared.