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.
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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.
"I want people to see my movies in the best formats possible. For [Paramount] to deny people who have Blu-ray sucks!" -- Movie Director Michael Bay
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