The US Federal Communications Commission (FCC) has said that it will not give its approval to a plan to build a national 4G-LTE network by LightSquared as the network will interfere with the GPS signals in the country.

The decision is huge set back to LightSquared, which has been fighting for its right to build the network in the country. The announcement by FCC came after the National Telecommunications and Information Administration (NTIA) warned that LightSquared's proposed network would interfere with the GPs signals and there are not ways available to lessen its affect on the GPS systems.

A government panel had found that the proposed wireless network of LightSquared. Officials form nine federal government agencies had said that no steps will allow the company to avoid interfering with GPS infrastructure in the country.

The findings were a huge blow to the multi-billion dollar plan to rollout the new wireless network. The National Space-Based Positioning, Navigation and Timing Executive Committee (PNT) has written a letter to the Commerce Department saying no further testing is required in the matter.

LightSquared has earlier asked the Federal Communications Commission and National Telecommunications and Information Administration to take a lead in the approval process.