Dish Network Cries “Foul!”

November 21, 2012 by Paul Ausick

Source: Thinkstock
Like most cable and mobile carriers, Dish Network Corp. (NASDAQ: DISH) has been seeking ways to bundle TV, Internet and mobile phone service in one integrated offering that would help the company lock-in customers and boost revenues. In May, Dish filed with the Federal Communications Commission (FCC) for just such a package deal.

The FCC chairman yesterday proposed that Dish be allowed to a portion of the lower power spectrum near the frequencies that the company uses to provide its satellite TV service. Dish is not impressed, saying that the low-power spectrum “would cripple our ability to enter the [integrated services] business.”

Dish spent more than $2 billion in late 2010 to acquire terrestrial spectrum that it would then use to offer a hybrid terrestrial-satellite broadband service. But the service depends on high-power spectrum licenses that would deliver broadband speeds.

The low power proposal from the FCC is intended to avoid interference issues in the currently unlicensed H block spectrum. Sprint Nextel Corp. (NYSE: S) has asked the FCC to require Dish to disable 25% of its uplink spectrum and throttle another 25% in order to accommodate Sprint’s possible future use of the nearby H block spectrum.

The competition for wireless spectrum is intense, as 4G networks have significantly boosted the amount of data customers use. Verizon Communications Inc. (NYSE: VZ) recently paid $3.9 billion for additional spectrum, and AT&T (NYSE: T) reached agreement with Sirius XM Radio Inc. (NASDAQ: SIRI) regarding possible interference issues in another part of the wireless spectrum.

The Dish Network press release related to the FCC proposal is available here.

Paul Ausick

Sponsored: Attention Savvy Investors: Speak to 3 Financial Experts – FREE

Ever wanted an extra set of eyes on an investment you’re considering? Now you can speak with up to 3 financial experts in your area for FREE. By simply
clicking here
you can begin to match with financial professionals who can help guide you through the financial decisions you’re making. And the best part? The first conversation with them is free.


Click here
to match with up to 3 financial pros who would be excited to help you make financial decisions.