Report: DISH CEO Makes Aggressive $2B USD Bid for LightSquared's Spectrum
May 20, 2013 10:25 PM
comment(s) - last by
Bid could help Charlie Ergen build a top U.S. carrier -- with or without Sprint Nextel
The fall of LightSquared and hedge fund manager Phillip Falcone was well documented. For a time it looked like the service provider would
become a key partner to Sprint
Nextel Corp. (
) with its ambitious satellite LTE scheme.
Then came the news that the satellite transmissions would
interfere with roughly 75 percent of global positioning service (GPS) receivers
-- a debacle that caused the
U.S. Federal Communications Commission
reject LightSquared's bid
in the eleventh hour, despite giving a conditional approval that critics say was bred from Mr. Falcone's
close relationship with the Obama administration
. In the aftermath of the FCC rejection, Sprint dumped LightSquared,
LightSquared went bankrupt
, and Mr. Falcone was
accused of defrauding investors
But the company still holds valuable spectrum, and in the midst of its Chapter 11 bankruptcy it reportedly has received a major bid for that spectrum that could help Mr. Falcone trim his losses and pay of debt, relieving bitter shareholders.
The bid for spectrum was
and is reportedly the work of DISH Network Corp. (
) CEO, chairman, and founder Charlie Ergen.
In the midst of his bid for Sprint, DISH CEO and founder Charlie Ergen is looking to make LightSquared's spectrum holdings his latest chunk of acquired spectrum.
[Image Source: AllThingsD]
Mr. Ergen has been aggressively buying spectrum for some time now, dreaming of founding a large U.S. cellular carrier. Mr. Ergen is currently
competing with Japan's fastest growing mobile carrier
, Softbank Corp. (
A judge must approve the so-called "stalking-horse agreement" (a bid that sets the minimum price for an auction-style sale), and the deal must be agreed to before the end of the month, according to
In March LightSquared entered an armistice of sorts with shareholders, obtaining a small $5M USD loan in exchange for moving ahead into Chapter 11 bankruptcy. Mr. Falcone last week also settled up with the
U.S. Securities and Exchange Commission
, paying a $18M USD fine for alleged borrowing $113M USD from one of his hedge funds to pay his taxes.
Mr. Ergen's DISH already has received permission to set up a cellular network from the FCC. So if his bid for Sprint fails, he may opt to enter the market anyways, using his horded spectrum to establish a fifth major U.S. carrier brand.
is still hopeful that some of the spectrum it owns can be used
for cellular networks (and hence of value)
via the use of protective "buffers"
around its portion of spectrum bordering the GPS blocks.
This article is over a month old, voting and posting comments is disabled
Best Negotiator Ever
5/21/2013 9:14:12 AM
Charlie Ergen is definitely the best negotiator that I have ever met or even spoken with. He makes the late Steve Jobs seem like a babe in the woods. Charlie is the world's expert at brinkmanship.
In the very first DBS satellite slot auction back in the early 90s Charlie bid MCI up on the primary slot (that Charlie didn't even want in the first place). He bid MCI up and got MCI to spend several hundred million dollars ($600+ million, IIRC) just for the right to put a satellite up into that slot. Then he got the neighboring slot (the one he really wanted) for comparatively peanuts because MCI couldn't afford to bid against him. It was classic to watch. The list of these kinds of exploits by Charlie goes on and on.
It will be interesting to watch how this falls out.
"And boy have we patented it!" -- Steve Jobs, Macworld 2007
Dish Looks to Scoop SoftBank, Offers $25.2B USD for Sprint
April 15, 2013, 11:22 AM
Softbank to Take 70 Percent Stake in Sprint for $20B
October 15, 2012, 7:32 AM
LightSquared Offers Plan to Squash Satellite 4G Interference Concerns
October 1, 2012, 10:41 AM
FCC Considers AT&T LTE Spectrum Conversion, Sirius Interference Solved
September 27, 2012, 1:33 PM
The Debacle Continues: LightSquared CEO Charged With Fraud
June 28, 2012, 11:26 AM
Retiree Sues Apple For $7,500 for Wiping Honeymoon Photos From His iPhone
November 30, 2015, 10:23 AM
iPhone 7 May Pack 3-4 GB Memory, More Storage; 4-Inch Comeback is Rumored
November 20, 2015, 10:12 PM
OnePlus One, OnePlus 2 Will Receive Android Marshmallow in Q1 2016
November 16, 2015, 9:58 AM
Lenovo Whoa: Motorola Droid MAXX 2 and Turbo 2 Break Cover in Leaks
October 26, 2015, 3:12 PM
Leak: Apple Preps for First Real Android App Foray With New Apple Music App
October 24, 2015, 1:59 PM
Pepsi Smartphone? Empty Calories Coming Soon to the Midrange
October 12, 2015, 11:41 PM
Latest Blog Posts
Sceptre Airs 27", 120 Hz. 1080p Monitor/HDTV w/ 5 ms Response Time for $220
Dec 3, 2014, 10:32 PM
Costco Gives Employees Thanksgiving Off; Wal-Mart Leads "Black Thursday" Charge
Oct 29, 2014, 9:57 PM
"Bear Selfies" Fad Could Turn Deadly, Warn Nevada Wildlife Officials
Oct 28, 2014, 12:00 PM
The Surface Mini That Was Never Released Gets "Hands On" Treatment
Sep 26, 2014, 8:22 AM
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
More Blog Posts
Copyright 2016 DailyTech LLC. -
Terms, Conditions & Privacy Information