The U.S. Federal Communications Commission (FCC) has said it won't allow LightSquared to operate the LTE network unless it can prove the interference problems have been solved. Many vendors and users of GPS (Global Positioning System) equipment have lobbied the FCC to keep LightSquared from running its LTE network in its assigned spectrum, which is close to that used by GPS devices.

GPS backers say such a network would degrade or block GPS service because its signals would be much more powerful than the satellite transmissions used for GPS. LightSquared says the problem was caused by GPS vendors that knew as far back as 2001 that there would be a terrestrial mobile network operating in frequencies their devices used.

The carrier is trying to work with the GPS industry to solve the problem, allowing the FCC to approve the network, said Jeffrey Carlisle, LightSquared's vice president of regulatory affairs and public policy. He spoke on a conference call with reporters Monday.

"If it is impossible to get a decision on this that allows us to go forward, I think our way forward is pretty clear, that we then have to insist on our legal rights," Carlisle said. "If you have to be the bad guy, and go out and start ... insisting on your property line, well, then that's what we'll do."

Carlisle did not elaborate on what action LightSquared might take, but he said the FCC's basic rules on interference can't protect the GPS receivers in this case.