A federal judge has ruled that Ligado Networks can proceed with its lawsuit against the U.S. government, marking a significant victory for the communications company.
In October 2023, Ligado filed a lawsuit seeking $39 billion from the government, alleging that officials from the Departments of Defense and Commerce engaged in “unlawful actions” to improperly seize its L-band spectrum without compensation. In January, the government had requested the dismissal of the suit.
Today, Judge Edward J. Damich of the U.S. Federal Claims Court issued a ruling that partially favored both Ligado and the government, but ultimately allowed the case to move forward.
“We are encouraged by the decision and look forward to pursuing our case to hold the government accountable for the just compensation it owes the company,” said a Ligado spokesperson.
The court acknowledged Ligado’s position that the FCC-licensed spectrum bands constitute property in relation to the Department of Defense. The ruling stated that the Department’s unauthorized occupation of the spectrum, which has hindered Ligado’s ability to utilize its property, constitutes a constitutional taking that requires government compensation.
This ruling continues the long-standing saga surrounding Ligado’s plans to use L-band spectrum to develop a wireless cell phone network, amid concerns from the Departments of Defense, Commerce, and Transportation that it could interfere with signals from the Global Positioning System (GPS). In 2020, the Federal Communications Commission (FCC) voted to grant Ligado the license to build a 5G network despite opposition from federal agencies.
GPS is vital for various applications, including military operations, air traffic control, and civilian navigation. Defense officials have expressed concerns about potential impacts on military operations, including navigation for soldiers and missile guidance systems.
One challenge for Ligado, according to expert Tim Farrar, is the lack of disclosure from the Pentagon about which specific systems are deemed at risk, due to classification issues. This has hindered Ligado’s ability to formulate a counterargument. The Senate Armed Services Committee included provisions in the National Defense Authorization Act (NDAA) to compel the Pentagon to disclose that information, but its fate in ongoing NDAA negotiations is uncertain.
Farrar noted, “The key issue is whether there will be justification for Ligado’s claim of occupation. This could turn into a fight over provisions in the policy bill, which would grant Ligado leverage to uncover evidence to support its claim.”
Following the electoral victory of president-elect Donald Trump, Ligado’s situation could change significantly. During Trump’s first administration, key officials advocated for opening up spectrum to promote economic growth, while the Pentagon, under then-SASC chairman Jim Inhofe, strongly opposed Ligado’s initiatives. However, Roger Wicker, a Republican from Missouri and likely successor to the SASC leadership, appears to be more favorable toward the situation, potentially reducing Senate pushback against Ligado’s actions.
Trump has also announced plans to nominate FCC member Brendon Carr as the new chair. In 2020, Carr voted in favor of Ligado’s application and supported efforts to liberate spectrum for economic benefits. He is reportedly close to Elon Musk, who seeks to lessen regulatory oversight of entities like the SpaceX Starlink satellite network.
“This was an internal Trump administration back-and-forth last time, and we’ll have to see the positions of the new administration. Ultimately, it will be up to this administration to resolve Ligado’s claim if a settlement is necessary,” Farrar concluded.
