The FCC has given US DTH provider Dish Network permission to repurpose its satellite spectrum to deploy a terrestrial LTE network.
As expected, it is believed that the approval comes on the condition that Dish disables frequencies lying close to a block…
The FCC has given US DTH provider Dish Network permission to repurpose its satellite spectrum to deploy a terrestrial LTE network.
As expected, it is believed that the approval comes on the condition that Dish disables frequencies lying close to a block of spectrum that the regulator plans to auction next year.
The FCC declined to comment because the full text of its ruling had yet to be published as SatelliteFinance was going to press. The satellite broadcaster will reportedly also be required to construct at least 70% of its new network within six years.
Jeff Blum, Dish’s deputy general counsel, said: “Following a more thorough review of the order and its technical details, Dish will consider its strategic options and the optimal approach to put this spectrum to use for the benefit of consumers.”
The company has previously said it will need to secure a spectrum partner to deploy its planned terrestrial network nationwide. Operators that have recently been in the frame as potential partners include Sprint, Clearwire and Leap Wireless. Dish has also reportedly held early talks with Google.
Alternatively, as demand for mobile capacity continues to skyrocket, Dish could look to sell the frequencies to a spectrum hungry operator. Chairman Charlie Ergen acquired the assets for around US$3bn last year, but the terrestrial ruling will have boosted its value.
The FCC’s spectrum announcement, which came ahead of its planned meeting on the matter later today, will be a welcome end to Dish’s long-running saga to utilise its 40MHz of AWS-4 frequencies.
In an indication that a resolution was on the horizon, Dish told the FCC in early December that it was willing to disable a quarter of its uplink frequencies if it is was allowed to deploy terrestrial services.
This was an apparent climb down to the stance the company took just weeks before when similar proposals were reportedly leaked from the FCC. On 20 November, Dish general counsel Stanton Dodge warned that such rules could cripple its ability to launch an LTE network.
According to the FCC, preventing the use of some of Dish’s spectrum will help realise a government goal to free up 500 MHz of frequencies for broadband by 2020. This is because it will avoid interfering with 10 MHz of neighbouring H Block spectrum, which Sprint has already indicated an interest in buying. This sale could reportedly raise billions of dollars, and the FCC plans to use the proceeds to help fund a nationwide public safety network, as well as reducing the US deficit.
Dish’s favourable terrestrial ruling will be a boon for US satellite operators LightSquared and Globalstar, which are also seeking regulatory permission to use their spectrum for terrestrial services.
