US DTH group Dish Network has warned that rules reportedly being considered by the FCC for its spectrum could cripple its ability to launch an LTE network.
Stanton Dodge, Dish’s general counsel, said draft rules obtained by Bloomberg that would limit…
US DTH group Dish Network has warned that rules reportedly being considered by the FCC for its spectrum could cripple its ability to launch an LTE network.
Stanton Dodge, Dish’s general counsel, said draft rules obtained by Bloomberg that would limit the use of its uplink spectrum were “significantly flawed”.
Under the reported proposals, Dish said it would need to disable a quarter of its uplink spectrum and impair another 25% of it to allow the possible future use of neighbouring H Block frequencies by Sprint, the US mobile operator that has expressed interest in acquiring frequencies in the band.
Dodge said: “Sprint’s position on the H Block would render useless 25% of Dish’s uplink spectrum — so that Sprint is positioned to merely gain the exact same amount of spectrum.”
“This is a zero-sum approach that does not result in a net spectrum gain for the American consumer when the wireless economy needs access to all available spectrum.”
According to Dish, the reported proposed order could add years of delay to its plan to build a terrestrial network and compete with existing US telcos. This is because it could prompt a new standards-setting process for the H Block, which would require further FCC rulemaking that Dish would have to wait for.
The group is calling on the FCC to revert back to the regulator’s original recommendations for the terrestrial use of its spectrum, which were announced in April.
Responding to the reported draft proposals, a spokesman for Sprint said: “We remain hopeful that the Commissioners will decide to support Dish’s plans to build a new wireless network, while taking the steps necessary to protect Sprint’s PCS spectrum holdings and other adjacent 2 GHz terrestrial spectrum, and welcome the Commission’s plans to auction the adjacent spectrum.”
Analysts at Credit Suisse said the reported proposals were still broadly positive for Dish, because the vast majority of the utility of the group’s spectrum is associated with its downlink frequencies, which would remain untouched. It valued the spectrum assets at US$8bn, despite the recent developments.
Credit Suisse said the FCC could make its decision on Dish’s spectrum at its 12 December open meeting. However, a decision could also be subject to a 30-day voting process from that date, it said.
Even with FCC approval to launch terrestrial LTE on spectrum that previously also required the provision of satellite services, Dish has indicated that it would need a partner to help build out its ground network. The DTH firm would also need to acquire additional frequencies to deploy nationwide services. It currently owns 40 MHz of 2GHz frequencies.
US wireless operators that have recently been in the frame as potential partners include Leap Wireless and Clearwire. Dish has also reportedly held early talks with Google.
