Loss of a Wireless Dream Caps a Fast Fall From Grace

It was as ambitious a bet as any hedge fund manager could imagine: building a wireless network from scratch to compete with the likes of AT&T and Verizon. But the dream has come crashing down to earth for Philip A. Falcone, the investor whose multibillion-dollar wager has been all but halted by the Federal Communications Commission.

The agency, which initially blessed Falcone’s plans for a 4G network, changed course after an adviser determined the signal would interfere with GPS systems. The decision could spell disaster not just for LightSquared, the upstart venture, but also for Falcone’s career as a money manager. He paid billions of dollars to launch a satellite into orbit and map out a forest of cellphone towers dense enough to service the nation. Now, after more than a year in Washington’s cross hairs, the crown jewel of Falcone’s efforts — representing some 60 percent of his main hedge fund — is in peril.