June 14, 2011 / 5:03 PM / in 8 years

GM's OnStar calls for more testing of LightSquared

* Says technology can interfere with GPS systems

* Letter comes a day ahead of deadline for review

DETROIT, June 14 (Reuters) - General Motors Co’s (GM.N) OnStar unit has asked U.S. regulators to further review whether technology from upstart wireless telecommunications company LightSquared [MOSAV.UL] could interfere with some uses of global positioning systems.

OnStar, in a letter to the Federal Communications Commission on Tuesday, said tests showed LightSquared’s system could interfere with the narrow-band GPS that OnStar equipment uses to notify emergency responders when a car using the service has been involved in a crash.

“The bandwidth that they were given has potential interferences with GPS systems like we use,” said Vijay Iyer, an OnStar spokesman. “We believe there is a potential of mitigating, finding some mitigating solutions.”

The letter was filed a day ahead of the deadline for a report from a working group that has been examining the potential for interference between a wireless network LightSquared wants to build and GPS equipment that is used for everything from car navigation to defense systems.

A LightSquared representative was not immediately available for a comment.

Founded by billionaire hedge fund manager Philip Falcone of Harbinger Capital, LightSquared’s business model is to sell wholesale wireless services to companies such as Best Buy Co (BBY.N), which then resell the service under their own brand names. (Reporting by Scott Malone in Detroit, additional reporting by Sinead Carew in New York; editing by John Wallace)

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