Harbinger Capital Partners, the principal owner of currently
bankrupt 4G wireless wholesaler LightSquared Inc., has filed
litigation against satellite TV operator
DISH Network Corp.
) in the U.S. Bankruptcy Court in Manhattan. Harbinger has
requested the court to reject DISH's bid to acquire the wireless
spectrum of LightSquared. DISH currently has a Zacks Rank #3
In May 2013, DISH offered $2.22 billion to acquire 40 MHz of
wireless spectrum held by LightSquared. Recently, the U.S.
Bankruptcy Court in Manhattan has allowed LightSquared Inc. to
send a standalone bankruptcy plan to creditors for vote. This
bankruptcy exit plan has been supported by Fortress Investment
Group LLC., JPMorgan Chase & Co. and Melody Capital Advisors
Notably, LightSquared's plan is contingent upon obtaining
certain regulatory approvals while DISH simply needs to state how
it will utilize the LightSquared's airwave. Harbinger rejected
DISH's bid stating that DISH has resorted to fraudulent means to
enter the bidding process. Both DISH and
), controlled by Charlie Ergen, are major competitors of
In Oct 2013, a Manhattan bankruptcy judge approved DISH's bid
and had set an auction date on Nov 25, 2013. Earlier, the Federal
Communications Commission (FCC) had refused the use of this
particular airwave as it was interfering with the global
positioning system. This led to LightSquared's bankruptcy.
Later on, the FCC conducted more tests on the spectrum and
eventually permitted an auction with a few modifications. DISH
will present its plan for airwave at the next court hearing on
Jan 10, 2014.
Meanwhile, in the last couple of years, DISH has constructed
an extensive wireless/satellite spectrum base. On Jun 17, 2013,
NTELOS Holdings Corp.
) jointly started providing fixed-mobile broadband network to
offer high-speed Internet service to areas served by NTELOS. This
joint venture will reach other parts of the U.S. in early
On Dec 17, 2013, DISH together with
) announced that the two companies have decided to jointly
develop and deploy a fixed broadband network in Corpus Christi,
Texas. The network is expected to start from mid-2014 on a trial
basis. If successful, then the two entities may extend the
broadband network to other areas.
DISH NETWORK CP (DISH): Free Stock Analysis
NTELOS HOLDINGS (NTLS): Free Stock Analysis
SPRINT CORP (S): Free Stock Analysis Report
ECHOSTAR CORP (SATS): Free Stock Analysis
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