The much-talked about auction ended Tuesday raising about $19.6 billion for the government. Wireless carriers AT&T and Verizon Wireless won the bulk of the spectrum. The few new licenses that the “Dish Network” has purchased were in the 6MHz sliver of spectrum called the E-Block. Because these licenses cover such a narrow band of spectrum, it would be nearly impossible for the Dish Network to build a broadband wireless service to allow them to transmit two-way communication. This means that building a cellular phone or wireless broadband service using this spectrum is nearly impossible. But the spectrum could be used to send communications one-way, making it ideal for services such as broadcast TV.
Oddly enough, Qualcomm Inc. already owns spectrum that is adjacent to the spectrum that the Dish Network bought. Qualcomm uses its spectrum to deliver its MediaFlo TV mobile broadcast TV service. Also, Qualcomm had been bidding in the auction and was attempting to get the E-Block licenses along with Dish Network. The fact that it wasn’t able to get those licenses is a negative for the mobile technology company.
“It makes more sense for one provider to operate both pieces of spectrum,” Steve Clement, an analyst at Pacific Crest Securities told Reuters.
The Dish Network hasn’t yet made public what it plans to do with the newly aquired spectrum. Some analysts have speculated that it could cost the company between $3 billion and $5 billion to build a mobile TV network. The company said in a financial filing with the Securities and Exchange Commission in February that it might “make investments in or partner with others to expand our business into mobile and portable video, data and voice services.”