Dish's pursuit of extra AWS-3 spectrum may finally be over

After almost a decade of effort, Dish Network may have finally run out of legal options in its pursuit of roughly $3.3 billion worth of AWS-3 spectrum.

According to the financial analysts at New Street Research, the Supreme Court decided not to review an appeal by Dish on the topic. "The Supreme Court denied the ... petition by Dish," the analysts wrote in a note to investors Friday, "effectively ending Dish's effort to gain control of spectrum that was auctioned in 2014."

A Dish representative did not immediately respond to questions from Light Reading on the development.

The Supreme Court issued a number of other major rulings this week, including striking down the Biden administration's plan to erase some student loans.

A long, complex story

At issue are $515 million in fines and 197 AWS-3 spectrum licenses worth around $3.3 billion. Two bidding entities called Northstar Wireless and SNR Wireless bought $13.3 billion worth of AWS-3 spectrum in the FCC's 2014 auction. SNR and Northstar initially qualified as "designated entities," or DEs, which made them eligible for a 25% discount intended for small businesses.

After the auction ended, the FCC ruled that the two DEs should not receive that discount because they were too close to Dish financially. As a result of the FCC's decision, Dish paid a $515 million fine and relinquished AWS-3 spectrum licenses worth around $3.3 billion. But the company has been working on getting the money and spectrum back during years of legal appeals.

However, Dish has suffered several legal setbacks in its efforts, including a loss at an appeals court in 2022.

What happens next

According to the New Street analysts, Dish has effectively run out of legal options. And that means the 197 AWS-3 spectrum licenses at issue will revert back to the FCC.

And that could pave the way for other operators – such as T-Mobile or Verizon – to eventually acquire the licenses through another auction.

"This raises the prospects of a re-auction of spectrum in the not-too-distant future," according to the New Street analysts.

However, the FCC lost its Congressional auction authority to administer spectrum licenses amid a Washington, DC, battle over the future of the 3.1GHz-3.45GHz spectrum band. The agency will need to regain that authority, through Congressional action, in order to re-auction the AWS-3 licenses.

Dish, for its part, recently completed a 5G network buildout using other spectrum bands to cover 70% of the US population. According to the New Street analysts, the company won't miss what it never had.

The only trouble Dish might encounter is a stipulation requiring the company to pay the difference if the AWS-3 licenses sell at auction for less than the $515 million fine it has already paid – an unlikely scenario.

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— Mike Dano, Editorial Director, 5G & Mobile Strategies, Light Reading | @mikeddano