In a report scheduled to be presented to the FCC on Wednesday, Lightsquared and a GPS industry group will tell the agency yes, Lightsquared will mess with GPS. The tests were conducted by both Lightsquared and the GPS industry group, and both groups will say the network caused GPS interference. Now that we got that out of the way, the question will be is there anything anyone can do about it?

From the Journal:

"The Federal Communications Commission will have to referee the growing disagreement between LightSquared and GPS makers and users, including the Defense Department and Federal Aviation Administration, which is planning to upgrade the U.S.'s existing air traffic control system to one that relies on GPS technologies.

The growing evidence that LightSquared's network could knock out GPS receivers, and the disagreement over whether the problems can be fixed are a problem for the wireless startup, which has been mostly funded by hedge fund Harbinger Capital Partners. The company has signed deals to offer wholesale wireless Internet service to companies including Leap Wireless International Inc. and Best Buy Co. But LightSquared can't actually offer service until it gets sign-off from the FCC."

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