DISH Network Corp. (NASDAQ:DISH) intends to sell its potentially lucrative 2GHz spectrum holdings in the so-called ‘S-band’, if its attempts to create a wireless network don’t work, said Chairman Charles Ergen.
Bloomberg quotes Ergen who declared that ‘billions of dollars of spectrum’ could be made available if the ambitious scheme backfires, despite gaining the much-awaited FCC approval.
The Electron Global Fund was up 2% for September, bringing its third-quarter return to -1.7% and its year-to-date return to 8.5%. Meanwhile, the MSCI World Utilities Index was down 7.2% for September, 1.7% for the third quarter and 3.3% year to date. The S&P 500 was down 4.8% for September, up 0.2% for the third Read More
“We would admit we failed and try a new approach. We would hang a ‘for sale’ sign on the spectrum,” he said.
DISH Network Corp. (NASDAQ:DISH) managed to secure FCC approval to use Advanced Wireless Services (AWS) spectrum to create a network that, according to a trademark application filed by the company, would be branded as “Racecar”.
In an effort to create another revenue stream, DISH Network has proposed to set up its own wireless network service, thereby offering triple play services to its customers whether at home or away.
The new wireless broadband service will be used for “wireless telephony and wireless broadband communications services for the transmission of voice, data, graphics and video; wireless broadband communication services; providing Internet access.”
According to Ergen, Dish’s with an equally competitive offer to Clearwire Corporation (NASDAQ:CLWR)’s sharholders, is competing with Sprint Nextel Corporation (NYSE:S), which offered its shareholders $2.97 per share for the ownership of the wireless company that it doesn’t already own.
“It’s not an illusory offer,” Ergen said. “We’re serious about it. Our offer is good for shareholders. Sprint will have to do more to keep us out.”
The chairman also said that a wireless network is vital for the firm’s future plans to connect media to its satellite television subscribers.
In November 2012, DISH was also linked to a wireless tie-up with search engine giant Google Inc.
DISH Network Corp. (NASDAQ:DISH) fell 1.4 percent to $37.11 in New York yesterday. The stock has hiked 2 percent this year.