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FCC Deals Setback to Dish Wireless Network Plans - WSJ.com
:
FCC Deals Setback to Dish Wireless Network Plans[/h]
[h=3]By ANTON TROIANOVSKI And AMY SCHATZ[/h]
Dish Network Corp.'s hopes to start building a new wireless network have been dealt a setback by the Federal Communications Commission, which denied the satellite-TV provider's request for a needed waiver and opted instead for a formal deliberation that will take until the end of the year.
Dish needs FCC approval to use satellite spectrum to support a ground-based cellphone network and had hoped to receive a waiver this month. The FCC's decision isn't likely to doom Dish's plans but will push them back— something Dish Chairman Charlie Ergen warned last week would make the project riskier.
The FCC aims to conclude its so-called rule-making process by the end of the year after taking public comment on changing how those airwaves are used, people familiar with the matter said.
The decision to take a more deliberate approach comes after the commission came under fire for acting too hastily in another controversial case. The commission granted a waiver to network start-up LightSquared Inc., which later saw its plan unravel amid objections from the Defense Department that its network would interfere with Global Positioning System devices.
Dish said it was disappointed with the FCC's decision but said it would work with the commission to get the needed approvals. Mr. Ergen has said the company needs to package mobile wireless services with its pay-TV offerings to stay competitive with cable operators and phone companies that already can offer such bundles.
The FCC ultimately is expected to endorse Dish's use of the spectrum. In the commission's 2010 National Broadband Plan, the FCC said rules governing the swath of airwaves in question should be changed allow a ground-based wireless network.
"The Commission has been clear and consistent about its intent to remove regulatory barriers in this band through a rulemaking to unleash more spectrum for mobile broadband," an FCC spokesman said in a statement. "The rulemaking process will best serve the public interest and maximize the long-term value of the spectrum for the American economy."
Dish agreed to acquire the spectrum licenses last year, when it spent $2.8 billion buying satellite operators DBSD and TerreStar Networks out of bankruptcy court. The FCC approved the sale Friday.
The company, best known as a satellite-TV provider, holds a closely watched wild card in the wireless industry. Newcomers aspiring to build networks have had trouble getting traction against giants like AT&T Inc. and Verizon Wireless. But spectrum is a key commodity, especially as booming smartphone use strains mobile carriers' networks. Analysts have speculated that Dish's spectrum could command a high price if sold to AT&T or another carrier.
Mr. Ergen personally appealed to FCC Chairman Julius Genachowski and other FCC officials in late February to approve waivers that would help Dish build a new, national high-speed wireless network.
Dish's proposed network wouldn't affect GPS devices, because its frequencies are far enough away to avoid problems. But AT&T and other wireless providers have complained that Dish's proposed network could cause interference with other wireless services. They have asked the FCC to hold off giving the satellite TV company the waivers until the agency completes broader, industry-wide rules for the airwaves.
FCC officials had appeared reluctant to grant waivers to Dish while fielding letters from Capitol Hill about why they had granted LightSquared a conditional go-ahead to build its network. Earlier this week, House Republicans on the Energy & Commerce Committee asked the FCC for internal documents about its LightSquared decision, and hearings are being planned.
FCC Deals Setback to Dish Wireless Network Plans - WSJ.com
:
FCC Deals Setback to Dish Wireless Network Plans[/h]
[h=3]By ANTON TROIANOVSKI And AMY SCHATZ[/h]
Dish Network Corp.'s hopes to start building a new wireless network have been dealt a setback by the Federal Communications Commission, which denied the satellite-TV provider's request for a needed waiver and opted instead for a formal deliberation that will take until the end of the year.
Dish needs FCC approval to use satellite spectrum to support a ground-based cellphone network and had hoped to receive a waiver this month. The FCC's decision isn't likely to doom Dish's plans but will push them back— something Dish Chairman Charlie Ergen warned last week would make the project riskier.
The FCC aims to conclude its so-called rule-making process by the end of the year after taking public comment on changing how those airwaves are used, people familiar with the matter said.
The decision to take a more deliberate approach comes after the commission came under fire for acting too hastily in another controversial case. The commission granted a waiver to network start-up LightSquared Inc., which later saw its plan unravel amid objections from the Defense Department that its network would interfere with Global Positioning System devices.
Dish said it was disappointed with the FCC's decision but said it would work with the commission to get the needed approvals. Mr. Ergen has said the company needs to package mobile wireless services with its pay-TV offerings to stay competitive with cable operators and phone companies that already can offer such bundles.
The FCC ultimately is expected to endorse Dish's use of the spectrum. In the commission's 2010 National Broadband Plan, the FCC said rules governing the swath of airwaves in question should be changed allow a ground-based wireless network.
"The Commission has been clear and consistent about its intent to remove regulatory barriers in this band through a rulemaking to unleash more spectrum for mobile broadband," an FCC spokesman said in a statement. "The rulemaking process will best serve the public interest and maximize the long-term value of the spectrum for the American economy."
Dish agreed to acquire the spectrum licenses last year, when it spent $2.8 billion buying satellite operators DBSD and TerreStar Networks out of bankruptcy court. The FCC approved the sale Friday.
The company, best known as a satellite-TV provider, holds a closely watched wild card in the wireless industry. Newcomers aspiring to build networks have had trouble getting traction against giants like AT&T Inc. and Verizon Wireless. But spectrum is a key commodity, especially as booming smartphone use strains mobile carriers' networks. Analysts have speculated that Dish's spectrum could command a high price if sold to AT&T or another carrier.
Mr. Ergen personally appealed to FCC Chairman Julius Genachowski and other FCC officials in late February to approve waivers that would help Dish build a new, national high-speed wireless network.
Dish's proposed network wouldn't affect GPS devices, because its frequencies are far enough away to avoid problems. But AT&T and other wireless providers have complained that Dish's proposed network could cause interference with other wireless services. They have asked the FCC to hold off giving the satellite TV company the waivers until the agency completes broader, industry-wide rules for the airwaves.
FCC officials had appeared reluctant to grant waivers to Dish while fielding letters from Capitol Hill about why they had granted LightSquared a conditional go-ahead to build its network. Earlier this week, House Republicans on the Energy & Commerce Committee asked the FCC for internal documents about its LightSquared decision, and hearings are being planned.
