AT&T's Options: A Spectrum Buy-Up?

If the now-kaput T-Mobile US Inc. buyout was all about spectrum for AT&T Inc. (NYSE: T), then one way Ma Bell could make up for the loss is by going on a spectrum-buying spree, like its rival Verizon Wireless . (See AT&T Drops Bid to Acquire T-Mobile and VZ Wireless Nabs Cox's AWS Spectrum for $315M .) The question for AT&T will be: Where it can get suitable spectrum?

T-Mobile was the easiest option for AT&T, because the carrier was already operating 3G GSM services on its 1,700/2,100MHz AWS spectrum. Other bands are open to AT&T, but many of its options would involve a serious buildout to even get services operational. (See AT&T Drops Bid to Acquire T-Mobile.)

One possibility put forward by UBS Research in a note Monday is that AT&T could buy S-Band spectrum from Dish Network LLC (Nasdaq: DISH) This is spectrum that Dish acquired from TerreStar Corp. and DBSD with an eye toward creating a hybrid satellite and terrestrial network. [Ed note: Hmmm, haven't we heard this one before?] (See Dish Sizing Up Mobile Broadband Service .) UBS has this to say on AT&T's Dish-y option:

In fact, the analysts believe that the Federal Communications Commission (FCC) would "use SkyTerra as the precedent and seek to block Dish from selling the S-band to AT&T."

If that's the case, AT&T's options start to get more closed in. Ma Bell has been linked with LightSquared in the past. But -- as with Clearwire LLC (Nasdaq: CLWR) -- Sprint Corp. (NYSE: S) appears to have that deal locked down, assuming service ever gets off the ground.

— Dan Jones, Site Editor, Light Reading Mobile