Chris Khamken LightSquared, the beleaguered satellite company that plans to revolutionize the wireless industry as a new competitor, could spring back from the dead with an alternative plan it has been quietly shepherding through the regulatory process over the past year. Most industry observers considered LightSquared’s fate sealed when it filed for bankruptcy back in 2012 after failing to receive government approval to launch its cellular network in the face of interference concerns with GPS. But the company has been diligently pursuing an alternative path to bring its business plan to market.

The government has yet to green-light the company’s new plan, but LightSquared faces a new threat: Dish.

At this stage of the bankruptcy proceeding, LightSquared’s assets are on auction to the highest bidder and Dish is looking to capitalize. With $2.2 billion on the table, the pay-TV operator currently has the leading offer. Dish’s gambit to purchase LightSquared is part and parcel of the company’s broader strategy to transform itself into a broadband company. Last fall the company launched DishNET, a satellite-based Internet service targeting rural and underserved areas.

The Internet branch of the company is helping to stem the tide of customers leaving its other services.

In the last quarter Dish lost 78,000 pay-TV subscribers, but it gained 61,000 DishNET customers. 9     

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