LightSquared Inc., hedge-fund manager Philip Falcone's national wireless venture, collapsed Monday and filed for protection in U.S. Bankruptcy Court in New York.

The Reston, Va.-based operator said it had assets and liabilities that both exceed $1 billion in its formal filing.

LightSquared had warned it couldn't proceed independently after the U.S. Federal Communications Commission in February ruled its plans to build a 4G long-term evolution (LTE) national network would impede military communications.

Falcone, through his hedge fund, Harbinger Capital Partners, had invested more than $2.9 billion into LightSquared. The company had reported another $2.3 billion in debt and equity financing. Among the investors: Carl Icahn.

The company launched a satellite from Boeing Co. (NYSE: BA) in November 2010 to provide wireless services to customers out of cellular service range. Partnerships had been announced with the likes of Qualcomm Inc. (Nasdaq: QCOM), the biggest designer of mobile chips; Sharp Corp. (Tokyo: 6753) and others.

Harbinger operates as Falcone's personal vehicle. At one point, the fund owned as much as 7.5 percent of New York Times Co. (NYSE: NYT) but sold out its entire position in 2010.