So what is up DISH Network’s sleeve? That is the question after the results of the wireless spectrum auction was released late yesterday. DISH acquired 163 wireless spectrum licenses at a cost of $711 million dollars. That’s quite an investment for a company struggling to compete against DIRECTV and expanding telecom operators.
While DISH Network’s licenses reach across the nation and to Puerto Rico, it either came up short or decided not to bid for expensive major markets including Los Angeles, New York City, Philadelphia, Boston and San Francisco.
The FCC auction, held over the last two months netted $19.6 billion overall, with Verizon and AT&T buying up the bulk of the 1,099 licenses. AT&T bought $6.6 billion worth of licenses, while Verizon was the big buyer snapping up $9.4 billion worth of C-block spectrum, an area where many thought Google would make a foray into wireless.
The spectrum bought by DISH Network is classified as one-way, so speculation is that the company could be looking at developing a mobile TV service, with the possibility of delivering content to mobile phones. Citi analyst Jason Bazinet estimated the cost of building a wireless video network could cost DISH between $3-5 billion dollars. Other options include building a network to deliver wireless broadband services to the home. Another option for DISH Network may be simply holding the licenses for a period of time, then reselling them for a profit a in a few years.
No official comment has come from DISH Network regarding the auction or plans for the licenses.
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Spending $700 million on that now seems a bit silly to me.
I’m surprised that G didn’t get into it as well.
I wonder what Dish is going to do with this? I haven’t heard a thing. Maybe they will just resell them down the line