Falcone Wireless Wager at Risk as Deals Curbed, Spending Looms

Philip Falcone netted billions with contrarian bets on the metals and U.S. housing markets. Now he’s making what may be his riskiest wager yet.

Falcone’s Harbinger Capital Partners hedge fund is starting a telecommunications company that will square off against AT&T Inc., Verizon Wireless and Sprint Nextel Corp. in selling wireless Internet service. He needs billions of dollars to build the planned network of 36,000 radio towers and two satellites. If he doesn’t move fast enough, the government can take away the wireless licenses he needs to operate.