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Dish: 80% Chance of Rolling Out Its Own Wireless Broadband Service


jpkjeff
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Ergen: Dish Has 80% Chance of Wireless Success

 

Says Would Consider Alternatives if FCC Fails To Issue Waiver

 

Mike Farrell -- Multichannel News, 2/23/2012 2:10:26 PM

Dish Network chairman Charlie Ergen said the satellite giant has an "80% chance" of successfully launching its own wireless broadband service, adding if it does not received the necessary regulatory approvals it would have to consider alternatives for its spectrum.

Dish spent about $3 billion last year purchasing about 40 MHz of wireless spectrum from DBSD North Americaand TerreStar in the hopes of launching its own broadband service in the future, most likely with a partner. However, the company needs the Federal Communications Commission to grant it a waiver to offer the service.

On a conference call with analysts to discuss fourth quarter results, Ergen said he met Wednesday with FCC Chairman Julius Genachowski and that the FCC could issue a decision as early as March 12.

On the call Ergen said that Dish has more than an 80% chance of success in wireless broadband, adding that the hardest hurdle to clear is launching the service itself.

"For the last four years we have been putting things in place to get into the wireless industry, and we think that is a transformative strategy for us," Ergen said. "As we get into that business, I would say we have an 80% chance of success. If so you go full bore and give your best effort. When we started Dish Network, we thought if we could get past the [satellite] launch, we would have an 80% chance of being successful. The hardest part of a new initiative is getting started."

Ergen said he was confident that Dish would be able to receive the necessary waivers, but if not would have to rethink its strategy, including possibly selling the spectrum.

"If by chance we were not granted a waiver or it was kicked down the road without a decision through rulemaking, then I think that we'd have to consider the risk, and at this point, I'd say we probably don't have an 80% chance of success," Ergen said. "We'd have to look at other alternatives with what to do with the business and the spectrum, which would be unfortunate. "

He added that Dish would probably have to write down the spectrum assets if FCC approval did not come, adding that without the waivers "they probably wouldn't be worth the $3 billion or so we paid for them."

Ergen pointed to President Obama's broadband initiatives to increase competition, innovation and availability of wireless high-speed Internet service.

"We have a history of being very disruptive in the video business. I think we would be disruptive in the wireless business," Ergen said. "So that give s us some degree of confidence that we would meet the standard to grant the waiver. If so we're prepared to enter the business and go full force to make a business out of it. It would transform not only our company but transform the way people use wireless in the United States."[/color]

Source: http://www.multichan...ess_Success.php

Edited by jpkjeff
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I'm looking forward to seeing this play out. This could finally give them the upper hand against cable in big cities. If they can offer an internet bundle with sattelite tv instead of partnering with phone companies for DSL, it will be good for competition.

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Dish spent about $3 billion last year purchasing about 40 MHz of wireless spectrum from DBSD North Americaand TerreStar in the hopes of launching its own broadband service in the future, most likely with a partner. However, the company needs the Federal Communications Commission to grant it a waiver to offer the service.

 

40 Mhz!!! That would be epic! 20x20 LTE!

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If Egan truly wants to get into the wireless side it will be interesting. He's still talking about doing mobile video and not necessarily a wireless venture with phones. A network sharing agreement with Sprint and T-Mobile would benefit both the carriers and DISH, but if he goes the video route to stream movies, I don't think it would be a sustainable business model with the type of investment he's made.

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40 Mhz!!! That would be epic! 20x20 LTE!

 

Dish's S band spectrum is fully 20 MHz x 20 MHz, but it has some adjacent services issues (though nothing remotely as bad as the LightSquared-GPS debacle). So, Dish will not likely be able to utilize the full 20 MHz in each link allocation. Moreover, Dish's band class 23 is spec'd only to 10 MHz x 10 MHz LTE; it does not currently allow 15 MHz x 15 MHz nor 20 MHz x 20 MHz LTE options.

 

AJ

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Dish's S band spectrum is fully 20 MHz x 20 MHz, but it has some adjacent services issues (though nothing remotely as bad as the LightSquared-GPS debacle). So, Dish will not likely be able to utilize the full 20 MHz in each link allocation. Moreover, Dish's band class 23 is spec'd only to 10 MHz x 10 MHz LTE; it does not currently allow 15 MHz x 15 MHz nor 20 MHz x 20 MHz LTE options.

 

AJ

 

That kinda sucks. I was hoping it could do at least a 15 Mhz x 15 Mhz configuration. Could they do a 10 Mhz x 10 Mhz carrier and a 5 Mhz x 5 Mhz secondary carrier?

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they could just use LTE-Advanced and combined whatever carriers they can.

 

10x10 + 10x10 or 10x10 + 5x5, etc

 

The big question here: is dish going to piggyback off lightsquared's failure and just slip into network vision? That's the play here.

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Public Safety was granted its share of spectrum this week. I was at a meeting in which a vendor was talking about the capabilities and better uses of interoperability among different agencies with this new spectrum. The conversation of hosting never came up. I think the vendor wants to build a network from scratch (more $ for them) although some towers would have to be in strategically placed, however, no one has the money to build or even pay Sprint until the economy gets better for the Govt side.

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they could just use LTE-Advanced and combined whatever carriers they can.

 

10x10 + 10x10 or 10x10 + 5x5, etc

 

The big question here: is dish going to piggyback off lightsquared's failure and just slip into network vision? That's the play here.

 

If they have exactly 40 Mhz, how can they deploy two 10x10 LTE configurations? Don't they need some guard band on both sides for the adjacent PCS and AWS spectrum blocks? The most I can see them do is a 10x10, 5x5 and a 3x3 if they wanted to max out their spectrum or just a 10x10 and 5x5.

 

I really hope that Dish can get approval by the FCC to build out LTE without GPS interference because if it gets denied, it becomes another 40 Mhz of wasted spectrum. I really hope that if Dish gets FCC approval that they work with Sprint on a network hosting deal to bring Sprint more revenue. It just makes too much sense not to go that route.

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