Thursday, November 20, 2014

Dish on the Auction

The FCC’s AWS-3 auction that began last week has already surpassed $16.25 billion, according to Jonathan Chaplin at New Street Research, and Dish Network has been one of the heaviest spenders so far. Chaplin explained that prices for the paired spectrum have already passed $1/MHz-POP. If the bidding intensity holds they could be through New Street Research’s target of $1.50/MHz-POP today. “This has positive implications for DISH and negative implications for the carriers, supporting our theses in both cases. Investors that have pared back on DISH in the run up to the auction because of concerns over auction prices should be encouraged by the early bidding,” Chaplin wrote in a research note. It shouldn’t be entirely surprising that Dish is scooping up spectrum, the Wall Street Journal reported two years ago that Dish Network Charlie Ergen, co-founder and current Chairman of the Board, and former President and CEO of Dish Network, started assembling that spectrum for a total of about $3 billion half a decade ago. Continue reading here

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