FBR Reiterates Dish Network (DISH) Underperform on Spectrum Devaluation

While Dish Network (NASDAQ: DISH) weighs the possibility of a spectrum spinoff, FBR Capital sees the value of its asset eroding as the wireless industry moves closer to embracing low-cost unlicensed and shared capacity spectrum.

FBR analyst, David Dixon, cites the ecosystem that is quickly building around 150MHz of shared 3.5 GHz spectrum, which can be deployed in 2016 ahead of priority licenses auctioned in early 2017. Contrary to consensus, ~150 MHz of 3.5GHz spectrum should be a significant "5G metro hotspot" game changer.

He believes that the shared spectrum model is gaining momentum and is likely to materially change the spectrum supply curve as the combination of commodity hardware, plug-and-play Ethernet, and LTE on substantially lower-cost spectrum provides an industry alternative to DISH spectrum.

The firm reeiterated an Underperform rating and $60 price target.

For an analyst ratings summary and ratings history on Dish Network click here. For more ratings news on Dish Network click here.

Shares of Dish Network closed at $63.09 yesterday.

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