If it can win approval to operate the network, LightSquared plans to sell service only through other service providers, on a wholesale basis. Its satellite network would provide coverage in many rural areas where the nation's major carriers haven't deployed towers, while the LTE system would deliver a faster service in metropolitan areas. But some observers are skeptical about the profit in this scheme.

"I really struggle with the business model they're pursuing," Marshall said. "They haven't changed the business model sufficiently for it to work in many of these environments where large-scale service providers are challenged," Marshall said.

One component that might help LightSquared succeed is a reported , under which Sprint would resell services on the LTE network. LightSquared declined to comment on the reports. It's not clear how Clearwire, which is majority-owned by Sprint and sells wholesale capacity to that company, would be affected by such a partnership.

The IDG News Service