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This is not good news for someone. Perhaps the interference issue is overblown? I believe this is a US-only system.

http://ca.news.yahoo.com/proposed-wireless-broadband-network-threatens-gps-systems-20110406-052302-955.html

The problem stems from a recent government decision to let a Virginia company called LightSquared build a nationwide broadband network using airwaves next to those used for GPS.

LightSquared and the FCC both insist the new network can co-exist with GPS systems. But device makers fear GPS signals will suffer the way a radio station can get drowned out by a stronger broadcast in a nearby channel.
Link to LightSquared: http://www.lightsquared.com/
 

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Dan Hays, a consultant with the firm PRTM, insists the technical solution is straightforward: GPS devices need to include better filters to screen out the LightSquared signals
So toss out 100 million GPS receivers (think smart phones)?

That will be quite a hostile working group.
 

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That's why all modern devices have the exclusion, 'Must accept interference but cannot cause interference.' In other words, future GPS devices must be made better and current owners are SOL if the new service cause problems.
 

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^^^^
Actually, there's more too it than that. There are primary and secondary users of spectrum. Primary users are protected from interference from secondary users. Also, GPS since GPS is used for aircraft navigation, there's a safety impact as well. The FCC in the U.S. tried something similar, a few years ago, with broadband over power lines (BPL), which used the power distribution network to carry internet access to homes. They tried to ignore the interference implications and, as it turned out, ignored their own experts and the laws of physics to claim there woudn't be any interference. This has been through the courts in the U.S. and it appears BPL is all but dead. In this case, that company will have to demonstrate they don't interfere with something that can affect human safety. Also, the U.S. military is a big user of GPS and they have a very loud voice in such matters.
 
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