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 6:53:00 PM
You're either part of the solution or you are part of the problem.
"Can anyone tell me what MobileMe is supposed to do?... So why the f*** doesn't it do that?" -- Steve Jobs
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
While FCC Debates Allowing In-flight Voice Calls, Delta is Already Saying “Nope”
December 18, 2013, 12:11 PM
New Mac Pro Launches Tomorrow, Starts at $2,999
December 18, 2013, 10:56 AM
LG Introduces Chrome OS-Powered "Chromebase" AIO
December 18, 2013, 9:46 AM
Google Testing Smart Thermostat in St. Louis
December 17, 2013, 11:43 AM
Microsoft Wins "Synchronized Calendar" Patent Case Against Motorola Mobility
December 17, 2013, 11:23 AM
President Barack Obama Meeting with Tech Leaders to Discuss HealthCare.gov, NSA
December 17, 2013, 10:59 AM
Most Popular Articles
China's Lunar Rover Enters Orbit, Prepares for Historic Sat. Landing
December 13, 2013, 5:00 PM
Metro-Enabled Firefox Browser Expected to Land After Two Years of Work
December 12, 2013, 5:21 PM
The History of Normandy: How Nokia Plotted a Low-End Android Line
December 11, 2013, 8:12 PM
Ten Senators Sponsor Bill to Scrap Corn Ethanol Market Manipulation
December 13, 2013, 1:52 PM
China's Moon Rover Lands Safe and Sound, Starts Snapping Pics
December 16, 2013, 1:22 PM
Latest Blog Posts
Justice Leaks Details of Next HTC One Two Flagship Phone
Dec 5, 2013, 4:04 PM
Global Cyber Espionage Concerns Reveal Growing Cyber Armies
Nov 29, 2013, 11:04 AM
Is The Period Becoming an Expression of Anger?
Nov 26, 2013, 2:02 PM
NSA and Congress -- You Will Never Kill the Constitution, It's an Idea
Nov 10, 2013, 2:00 PM
AT&T Explores $100B+ USD Deal to Acquire Vodafone's European Operations
Nov 4, 2013, 7:34 AM
More Blog Posts
Copyright 2013 DailyTech LLC. -
Terms, Conditions & Privacy Information