TMCnet Feature
January 26, 2012
Dish Network Eyeing LightSquared Business?
Dish Network recently stirred speculation about whether it now wants to expedite its construction of a national Long Term Evolution (LTE) network, simply by indicating in a yet-private communication to the Federal Communications Commission that Dish wants to “revise” its plans.
Some have speculated that the request is to accelerate the proposed construction timetable, but that isn't clear. It might make sense, if Dish believes it now has a chance to supplant LightSquared as a major wholesale partner.
Dish Network needs an FCC waiver to use its satellite communications frequencies to support a terrestrial mobile network, as LightSquared also requires.
LightSquared has run into a wall because of interference with the Global Positioning System. Dish's proposal is seen as less problematic, as the frequencies it acquired last year from bankrupt satellite operators TerreStar (News - Alert) and DBSD North America are further away from the spectrum used by GPS systems.
There would not seem to be other political issues that could derail the Dish Network request, but neither will the FCC want to move in any hasty way that will leave it open to charges of favoritism or improper behavior. That would invite legal action by LightSquared.
It also would be reasonable to expect that Dish Network would want to work with at least one mobile service provider to expedite its construction activities and lower capital investment hurdles. Dish also might want a partner to help operate the new network.
AT&T has been mentioned for years as a potential acquirer of Dish, but largely for its video entertainment assets. Now it appears Dish could be doubly valuable as a spectrum resource. But T-Mobile (News 
- Alert) USA, still searching for a way to maintain its relevance in the wake of the failure of the AT&T bid to buy it, could be an option as well.
Should LightSquared fail to get authorization to operate its network, many contracts LightSquared already has signed with would-be mobile virtual network operators would come up for grabs, which is what some observers believe is motivating any potential Dish Network effort to expedite its construction timetable.
LightSquared has deals with more than 30 customers that have signed wholesale agreements with the company.
These customers range from major wireless companies like Sprint to regional carriers such as Leap Wireless and C Spire to rural carriers such as SI Wireless. National retailers such as Best Buy (News - Alert) and online retailers like Simplexity have signed on. Other customers include digital services companies like Elevate, as well as regional wireline players across the country such as PowerNet Global and EATEL, which are now able to offer the affordable wireless services that their customers are demanding.
LightSquared has also gotten deals with companies like Smarter Car, which will connect cars with drivers and dealers, and m-banco which is creating mobile wallets for the “unbanked” population in America.
FreedomPop, lead by Skype (News - Alert) co-founder Niklas Zennstrom, says it will offer free broadband and voice services to all Americans using LightSquared spectrum.
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Gary Kim (News - Alert) is a contributing editor for TMCnet. To read more of Gary’s articles, please visit his columnist page.
Edited by Jennifer Russell
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