The company unwisely told the FCC that it had a product that could do this when it didn't. This happens in an industry where hype has become a way of life for both equipment and service providers. Part of the problem with high-tech firms is that no one knows who's telling the truth about their products and who isn't. This is a recipe for disaster both for investors and the companies they finance. Exaggerating product potential is an insidious process that tends to trickle down to consumers in various ways.
Most people know very little about the telecommunications industry.
They are bombarded with upbeat information about high-speed data to their homes and offices. They are told their dial-up modems are out of date even though they're cheap, available and easy to use. The problems of service providers in providing faster solutions are a closed book to them. If they don't have the latest gadget they feel out of date and anxious. This anxiety filters back up the chain, first to the service providers and then to their equipment providers.