DISH Network (DISH) Needs to Lobby Better (S)
Tweet
Share
E-mailGet Alerts DISH Hot Sheet
Join SI Premium – FREE
DISH Network (Nasdaq: DISH) issued a statement late Tuesday following the Federal Communications Commission (FCC) granting approval for DISH to use spectrum for wireless service, but at a cost.
The FCC will allow the transition and will require DISH to operate at a lower power band. In its statement Tuesday, DISH said that the restriction makes operating wireless highly useless given the lack of quality customers will receive from the throttled-down output.
Notably, DISH is pointing the finger at Sprint (NYSE: S), claiming that the FCC is limiting DISH so it won't block any potential future use of H Block spectrum by Sprint. DISH commented, "The FCC does not currently license H Block spectrum, and that spectrum is unused today. Sprint, which controls more than 200 MHz of wireless spectrum, has expressed interest in acquiring rights to the 5 MHz H Block."
Sprint may acquire H Block spectrum at auction, according to comments from an executive recently.
However, the FCC is still under some pressure with consumers using more data than ever, requiring more spectrum to transfer that data. The agency voted in 2010 to ease restrictions of smartphone use on airwaves that DISH now owns, notes Bloomberg.
DISH is likely to appeal the decision. EVP R. Stanton Ford said, "The good news is that this proposed order is not final...We stand ready to work with the full Commission on final rules that put the full AWS-4 spectrum to work for America and that advance the future potential of the H Block."
Shares of DISH are flat Wednesday morning. For analyst color on the potential benefits to Sprint, click here.
The FCC will allow the transition and will require DISH to operate at a lower power band. In its statement Tuesday, DISH said that the restriction makes operating wireless highly useless given the lack of quality customers will receive from the throttled-down output.
Notably, DISH is pointing the finger at Sprint (NYSE: S), claiming that the FCC is limiting DISH so it won't block any potential future use of H Block spectrum by Sprint. DISH commented, "The FCC does not currently license H Block spectrum, and that spectrum is unused today. Sprint, which controls more than 200 MHz of wireless spectrum, has expressed interest in acquiring rights to the 5 MHz H Block."
Sprint may acquire H Block spectrum at auction, according to comments from an executive recently.
However, the FCC is still under some pressure with consumers using more data than ever, requiring more spectrum to transfer that data. The agency voted in 2010 to ease restrictions of smartphone use on airwaves that DISH now owns, notes Bloomberg.
DISH is likely to appeal the decision. EVP R. Stanton Ford said, "The good news is that this proposed order is not final...We stand ready to work with the full Commission on final rules that put the full AWS-4 spectrum to work for America and that advance the future potential of the H Block."
Shares of DISH are flat Wednesday morning. For analyst color on the potential benefits to Sprint, click here.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Blue Owl Credit Income Corp caps Q2 tender offer at 5% of shares
- 2 industrial stocks to buy into Q2 earnings, according to Deutsche Bank
- Here is why TD Cowen still see Block as a top pick
Create E-mail Alert Related Categories
Insiders' BlogSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
