Why is Dish Network Not Happy With This FCC Proposal?

“The mobile marketplace two years ago was on the doorstep of duopoly,” Genachowski told the Council on Foreign Relations on Tuesday. “But our rejection, along with the Justice Department, of the proposed AT&T T-Mobile deal, and other pro-competition actions we’ve taken, have led to an improving competition picture in the United States.” Dish Network joining the market would be a “game changer.” The company’s Chairman Charlie Ergen told the Washington Post that the FCC’s proposal “cripples our ability to enter the business.”

But for Dish Network, this limitation would be a “game changer.” The company’s Chairman Charlie Ergen told the Washington Post that the FCC’s proposal “cripples our ability to enter the business.” He fears that by limiting the power and emissions for the company’s uplink spectrum – the airwaves that transfer signal from cellphones to towers – the company will find it difficult to compete with established networks like AT&T and Verizon. As Dish Network described in press release on Tuesday, the FCC’s plan would force the company to disable “25 percent of its uplink spectrum and impair another 25 percent of that spectrum to accommodate possible future use of neighboring H Block spectrum by Sprint.”

Sprint (NYSE:S), which owns adjacent spectrum, supports the FCC’s restriction. Commenting on a related article published by CNET, John Taylor of the company’s Public Affairs department argued that all current wireless carriers operate under similar limitations. “AT&T, Verizon Wireless, T-Mobile and Sprint all take steps to ensure that they don’t pollute adjacent spectrum,” he said. “Why is it unreasonable for Dish to be asked to do the same?”

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