Dish Continues to Argue for Its Position in Upcoming 600 MHz Auction

by Istvan Fekete on January 12, 2016

dish-network-t-mobile Dish Network has informed regulator FCC that efforts by AT&T and T-Mobile to compel Dish it and its partners pay more to participate in the forthcoming 600 MHz broadcast TV spectrum auction are misguided.

Last week T-Mobile joined AT&T by filing documents with the regulator encouraging it to issue a declaratory ruling naming Dish and its affiliates, SNR Wireless LicenseCo LLC and Northstar Wireless LLC, as former defaulters, which would require them to pay higher upfront fees to reserve their place at the spectrum auction.

The lobbying efforts are in response to the decision by Dish’s designated entity partners to give up roughly a third of the paired AWS3-spectrum licences they won at auction in 2015. Dish’s DEs surrendered roughly $3.4 billion of their winning bids, primarily in New York, Chicago, and Boston. The DEs kept nearly $10 billion of the licenses they won at auction.

Dish owns an 85% economic stake in its DEs, so it had to pay a $515 million penalty for those bids, and the FCC could move to re-auction them, allowing Dish’s DEs to potentially bid on them next time.

The main issue there was whether Dish’s DEs qualified for the FCC’s small business discount, which would mean a $3 billion saving for Dish on spectrum licences. The FCC finally ruled that the DEs were not eligible to receive the discount, so Dish had to cede $3 billion worth of spectrum back to the FCC.

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Written by: Istvan Fekete. Follow by: RSS, Twitter, Facebook, or YouTube.

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