www.dealbreaker.comPhil Falcone admits his plans for LightSquared, a 4G wireless network he plans to roll out to 100 million users by 2012, the FCC-imposed deadline, are a "hot button issue" with investors.
He's dedicated hours to the press on a few occasions to explain why he thinks it will work in intricate detail, but it's not working. Many investors are still uncomfortable with his plans. Some are pulling money. Others are complaining to the press.
Look at the metaphor Falcone uses to explain why he believes in LightSquared and see if you agree with us that it's lacking.
“Do you want to own the Lincoln Tunnel or the cars that go through it?” he asks. “You want to own the road.”
We get it - the cars are the devices and the bridge is the phone company or other company selling wireless internet access. Falcone's LightSquared would be "the road" because it would sell its network to phone companies (Nokia, maybe TMobile).
Falcone's elevator pitch explains why he wants it to work, but it doesn't say why we're going to use another road (another 4G road, 2 years after their biggest competitors are rolling it out). So of course investors are left wondering, "what if no one wants to drive on it?"
He needs a better elevator pitch.