In a move that could have been predicted, would-be "free broadband" provider FreedomPop, which originally had wanted to build its network using LightSquared (News - Alert) facilities, now says it is talking to alternate suppliers. This is, at the very least, an indication that FreedomPop thinks LightSquared will not launch, or at any rate will not launch in time to help FreedomPop.

FreedomPop’s plan is to run a "freemium" service offering free broadband service for use on smartphones or other mobile devices while building a revenue model on the estimated 10 percent to 15 percent of consumers willing to pay for a higher level of access.  FreedomPop looking for wholesale capacity

A reasonable assumption is that FreedomPop is looking for deals from Sprint, T-Mobile USA or Clearwire, representing something on the order of $7 to $10 per gigabyte of usage. As you would expect, AT&T (News - Alert) and Verizon Wireless are less willing to meet FreedomPop's requirements, nor would either of those firms be too happy about putting such a competitor into business.

Clearwire has a wholesale model and makes the most sense in terms of potential channel conflict, and T-Mobile (News - Alert) USA likely is looking to rebound from the failed company sale to AT&T. Sprint has a long history of selling capacity on a wholesale basis. 

The talks are one more indication of waning confidence that LightSquared will be able to launch its business. Some think the precedent also isn't particularly helpful for Dish Network, either, which also is petitioning the Federal Communications Commission for permission to "re-purpose" satellite spectrum to build a terrestrial mobile network using the Long Term Evolution air interface. 

That probably is less an issue than many fear, as the specific problem LightSquared has is interference with GPS devices caused by some spectrum that is adjacent to the GPS bands. Dish Network's spectrum is far enough away, in terms of frequency, not to cause such interference.