Its struggle against the federal government to gain acceptance of its high-speed internet product is nearly over. LightSquared, the ambitious national wireless provider, is doomed.

In an announcement, the company praised the National Space-Based PNT Executive Committee as the committee issued a report that the LightSquared technology would work with the country’s cellular phone system. In the same announcement, the company all but admitted its battle with the FAA was ended.

The firm said:

 While we are eager to continue to work with the FAA on addressing the one remaining issue regarding terrain avoidance systems, we profoundly disagree with the conclusions drawn with respect to general navigation devices.

LightSquared’s signals caused “interference with a flight safety system designed to warn pilots of approaching terrain” in government tests of the proposed network, according to a statement from the Defense and Transportation Departments distributed yesterday by email. It also knocks out many GPS signals.

LightSquared is supported by $3 billion from Harbinger Capital Partners hedge fund. That fund now has only $5.7 billion, compared with $26 billion in 2008. And the SEC is examining Philip Falcone, the founder of the fund, for securities charges. His future is more in doubt than that of LightSquared.

The LightSquared business premise was always flawed. High-speed wireless internet is already available through the four large U.S. wireless carriers — T-Mobile, Sprint-Nextel (NYSE: S), AT&T (NYSE: T) and Verizon Wireless. The competition among them keeps consumer prices reasonable. LightSquared never really had a chance as an operating business because of that competition.

It is time for LightSquared to be shuttered. It is a waste of investor money because its technology is not only being fought by the government, but it is also largely useless.

Douglas A. McIntyre

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