Orlando, Fla. – Dish Networks’ plans for the cellular space continued to solidify this week as company co-founder and chairman Charlie Ergen spoke during a keynote session at the PCIA Wireless Infrastructure Show. Those plans are likely to involve a partnership with an established carrier that to this point has been hindered by an inability to receive full government approval for access and use of its 2 GHz spectrum holdings.
Dish Chairman Charlie Ergen speaking during a keynote address at the PCIA Wireless Infrastructure Show. (Source: Dan Meyer)
Dish’s partnership possibilities took a bit of a hit this week as T-Mobile USA announced a merger of sorts with MetroPCS, which solidifies each operator’s spectrum position for at least the short term. Dish had been reportedly talking with T-Mobile USA about a spectrum sharing deal. Ergen noted that while the deal did curtail some of its options, Dish still had a number of other strategies on the table.
“We wish we had access to our spectrum before this had happened,” Ergen noted, citing both the T-Mobile USA/MetroPCS deals as well as Verizon Wireless’ recent purchase of 1.7/2.1 GHz spectrum from a handful of cable operators. Ergan added that while the company’s 40 megahertz of spectrum in the 2 GHz band along with a handful of megahertz in the 700 MHz band were a good starting point for services, he thought in the long run that Dish would need access to more spectrum. He had cited the fact that many large operators had access to more than 100 megahertz of spectrum in some markets.
While Ergen was adamant that Dish wanted to enter the mobile space, he did note that the company was not “suicidal” and would not enter into a venture with no chance of survival. That could mean an eventual sale of its spectrum holdings should that outcome be most beneficial to its investors.
Ergen acknowledged that entering the mobile space will not be easy, but noted that Dish has a history of entering markets thought to be tough to penetrate and has succeeded. Ergen explained that any board would be willing to take a chance on a market with the growth potential expected for wireless broadband.
As for speeding up those plans, Ergen pleaded with government regulators to quicken their pace in ruling on the company’s spectrum plans, noting that it wished it had gained approval last year so it could have partaken in the current LTE build out frenzy rolling across the industry. The company was hoping to garner a place on the Federal Communications Commission’s docket for October, but is now just hoping to have a decision by the end of the year.
Ergen added that the company has already invested significant capital into picking up the spectrum holdings, and that it was also pretty far along with standards bodies in setting up specifications for equipment to operate in its spectrum channels. Ergen noted that recent remarks about possibly re-assigning Dish’s 2 GHz spectrum would only slow its progress.
However, despite a potential lack of depth, Ergen did note that the propagation characteristics of the 2 GHz band could lend itself to a strong small-cell portfolio. Ergen explained that interference issues with closely-spaced small cells played well into the hands of the 2 GHz band, which lacks the long-range and wall-penetration characteristics of lower spectrum holdings.
Regardless of those challenges, Ergen remains convinced that Dish will have at least a go in the mobile space.
“Some people dismiss us and say we can’t compete, while others want to know how they can help us get into the market,” Ergen said. “We are not that credible yet. … Invite me back in 5 years and let’s see how we did.”
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