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
RE: The Jason Mick Drinking Game Continues!
5/21/2013 9:52:37 AM
Oh no, that's a terrible idea. It's recursive and each flows to another. Next thing you know you're in the hospital.
RE: The Jason Mick Drinking Game Continues!
5/21/2013 10:00:37 AM
Nonsense! Recursive drinking games only lead to a mild case of death.
"There's no chance that the iPhone is going to get any significant market share. No chance." -- Microsoft CEO Steve Ballmer
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
iLate: CEO Tim Cook Says Apple Watch Will Ship in April
January 28, 2015, 3:03 PM
Amazon's Fire Sale on Fire Phone Steps up in UK w/ 1-Day Sale @ $150 Unlocked
January 28, 2015, 11:53 AM
Apple Sees Record Profit of $18 Billion, Sells 74.5 Million iPhones in Q1 FY2015
January 27, 2015, 6:01 PM
Apple Might Miss High-End of Analyst Estimates, Microsoft Earnings Hint
January 27, 2015, 3:14 PM
Microsoft Smartphone Sales Up 28 Percent as Lumia Budget Models Gain Ground
January 27, 2015, 8:30 AM
Quick Note: Special 20th Anniversary PlayStation 4 Raises $128,000 for Charity
January 26, 2015, 4:14 PM
Most Popular Articles
Google Fixes Homophobic "Bug" in its Translator
January 27, 2015, 2:31 PM
Ancient Aliens? 11.2 Billion Year Old Solar System Discovered
January 29, 2015, 12:09 PM
Under the Hood: How DirectX 11.3 and 12 Will Supercharge Windows 10 Gaming
January 23, 2015, 12:34 PM
Dual-Motor Tesla Model S P85D's "Insane Mode" Shocks Passengers
January 28, 2015, 11:18 PM
2016 Cadillac CTS-V Packs 640 hp Punch with 200 mph Reach
January 23, 2015, 3:25 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 2015 DailyTech LLC. -
Terms, Conditions & Privacy Information