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Dish, T-Mo resolve spectrum option dispute

Dish will put a $100 million downpayment on the former Sprint’s 800 MHz airwaves

Dish Network and T-Mobile US have settled a dispute over Dish’s option to purchase a nationwide footprint in 800 MHz spectrum, with Dish agreeing to put down $100 million toward the cost of the spectrum and getting an extension until April 2024 to finalize the purchase.

In August, Dish had asked for more time to come up with the money to make the spectrum purchase, due to high interest rates and the fact that it is in the midst of a combination with EchoStar that it expects to improve its access to financing.

The spectrum at issue totals about 13.5 megahertz of nationwide airwaves at 817-824 MHz/862-869 MHz, which Dish has an option to purchase for $3.59 billion. That section of the 800 MHz band is formerly Sprint (and formerly Nextel) spectrum which was the focus of a divestiture effort as part of the Department of Justice deal that allowed the T-Mo/Sprint merger to go through.

The amended agreement between the parties, according to a Dish filing with the Securities and Exchange Commission, gives Dish until April 1, 2024 to complete the purchase of the 800 MHz spectrum. Dish is also making a $100 million up-front payment to T-Mobile US, which, if Dish goes through the with purchase, will go toward the cost of the spectrum.

T-Mobile US also has the option to line up for a back-up buyer for the spectrum between now and April 1, 2024—though Dish retains the first right of purchase.

Under a spectrum purchase agreement made as part of the deals related to Dish acquiring Sprint’s prepaid business and infrastructure access, Dish is expected to buy all of those 800 MHz spectrum licenses. If Dish walks away from the spectrum purchase, it has to pay a $72 million fee to T-Mobile US.

T-Mobile US also has an option to leave back four megahertz of the spectrum (two megahertz in the uplink and two in the downlink) for two years, if the sale to Dish closes.

ABOUT AUTHOR

Kelly Hill
Kelly Hill
Kelly reports on network test and measurement, as well as the use of big data and analytics. She first covered the wireless industry for RCR Wireless News in 2005, focusing on carriers and mobile virtual network operators, then took a few years’ hiatus and returned to RCR Wireless News to write about heterogeneous networks and network infrastructure. Kelly is an Ohio native with a masters degree in journalism from the University of California, Berkeley, where she focused on science writing and multimedia. She has written for the San Francisco Chronicle, The Oregonian and The Canton Repository. Follow her on Twitter: @khillrcr