DISH Network Corp. (NASDAQ:DISH) recently received the approval of the Federal Communications Commission (FCC) for the expansion of its 4G LTE network in areas with congested bandwidth; however, the company faces some restrictions.
Based on the statement by DISH Network Corp. (NASDAQ:DISH) last week, the FCC removed the outdated regulation and provided the company with flexibility for most of the AWS-4 band. According to the company, the FCC took an important step in facilitating wireless competition, innovation and fulfilling the objectives of the National Broadband plan.
DISH Network Corp. (NASDAQ:DISH) will consider its strategic options and the optimal approach to put the spectrum to use for the benefit of consumers after conducting a thorough review of the FCC order and its technical details.
The FCC required Dish Network to complete 40 percent of its proposed network within 4 years and 70 percent within seven years. If the company fails to meet the required 70 percent completion within the specified period, Dish Network will not be able to offer its services to the uncovered areas.
In addition, if the company fails to complete the 40 percent network coverage within four years, FCC will cut its deadline for the 70 percent by one year. Furthermore, the agency also implemented power limits for the AWS-4 spectrum to avoid interference within the congested bandwidth. Dish Network is required to reduce the power of its 2000-2005 MHz portion of the spectrum.
Some observers opined the restrictions could lead DISH Network Corp. (NASDAQ:DISH) to expand its 4G LTE network in areas that are profitable while the rural areas would remain undeveloped.