Last week it was reported that government tests indicated LightSquared, Phil Falcone's big bet in the sky, would cause "devastating interference" to all GPS devices in range. Today, the National Space-Based Positioning, Navigation and Timing Systems Engineering Forum said the venture would "degrade global-positioning system navigation devices that are nearby and as far away as outer space." LightSquared, shares of which Harbinger Capital investors will receive should they have requested their cash back from the fund, however, is not worried.

“We are still digesting all of the data that came in over the last few weeks and months and we believe there is a solution,” Chris Stern, a LightSquared spokesman, said in an
interview.

Oh, there better be a solution. Otherwise a certain highly sought after singing and dancing pig is going to have to start considering his options.

LightSquared’s GPS Disruption Extends to Space, U.S. Study Finds [Bloomberg]