The startup's new proposal, in which it would (Global Positioning System), still needs regulatory approval and hasn't even been presented to the U.S. Federal Communications Commission yet. Meanwhile, one of the company's harshest critics slammed the plan as "bizarre."

LightSquared wants to with both satellite and LTE (Long-Term Evolution) services, but some of the spectrum for its LTE network is in the MSS (Mobile Satellite Services) band, which is also used for GPS. It has to solve any interference problems before it can launch the network.

Though details are scarce, LightSquared presented an outline of its plan in a press release on Monday. It would abandon, for now, a 10MHz band that sits near frequencies commonly used by GPS devices, and in its place would use a lower 10MHz band that is farther away. In the new frequencies, LightSquared's network would not interfere with GPS except for "a limited number of high precision GPS receivers," the company said. The rollout schedule for the network, which the company has said will go live this year, did not change with the new band plan, according to LightSquared.

Like LightSquared's original plan, the new proposal would need to be approved by the FCC, though the exact process would be up to the agency. LightSquared did not disclose a timeline for any formal proposal to the FCC. The original plan requires LightSquared to work with users and vendors of GPS technology to ensure its network doesn't interfere with GPS devices. The original proposal still stands, and after a deadline extension, a report on this testing is due July 1.

The Coalition to Save Our GPS, which includes GPS vendors Garmin, Magellan and Trimble, as well as FedEx, Caterpiller, the Air Transport Association and others, dismissed LightSquared's claims of having solved the interference problem.