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LightSquared CEO steps down

@CNNMoneyTech February 28, 2012: 2:14 PM ET

NEW YORK (CNNMoney) -- LightSquared CEO Sanjiv Ahuja is resigning, the company announced Tuesday.

Doug Smith, LightSquared's chief network officer and Marc Montagner, the company's chief financial officer, will take Ahuja's place while the company searches for a new CEO.

Hedge fund manager Philip Falcone, a backer of LightSquared, was also appointed to the company's board of directors.

Ahuja's resignation follows what's become an ongoing struggle for the venture-backed company to expand its wireless network and compete with major carriers like AT&T (T, Fortune 500) and Verizon (VZ, Fortune 500).

Under current regulations, LightSquared's spectrum isn't licensed for terrestrial transmissions that would enable it to carry wireless phone signals. The spectrum is currently licensed for satellite services only.

The spectrum war's winners and losers

In a fight to become a nationwide wireless carrier LightSquared recently hit a roadblock when government regulators barred the company from launching its network. Regulators said LightSquared's network would cause problems with GPS signals.

But Falcone reaffirmed the company's goal to sell wireless on a wholesale level to continue battling regulations.

"LightSquared's objective, through its wholesale business model, is to provide increased competition and lower prices in the telecommunications industry," Falcone said. "We are, furthermore, committed to working with the appropriate entities to find a solution to the recent regulatory issues." To top of page