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Federal regulators appear to be warming up to a radio spectrum proposal from Ligado Networks, formerly LightSquared, which could provide AT&T ( T ), Verizon Communications ( VZ ) or T-Mobile US ( TMUS ) with a new strategic option — but could spell trouble for Dish Network ( DISH ) and its spectrum holdings. The Federal Communications Commission recently began its Broadcast Incentive Auction involving airwaves owned by local TV stations. The top bidders are expected to be AT&T, Verizon and T-Mobile. The complex auction is expected to drag on for months. Ligado’s re-emergence from Chapter 11 has been a wild card . Verizon, AT&T or T-Mobile might be less likely to buy Dish’s spectrum or partner with the satellite TV broadcaster if Ligado’s spectrum becomes commercially available. Dish has struggled to find a wireless partner to pursue mobile video services. Former Verizon CEO Ivan Seidenberg is chairman of Ligado, while former FCC Chairman Reed Hundt is a board member. Ligado, controlled by private equity firms, has a sizable 35 megahertz of midband spectrum. “Recent filings suggest the FCC may soon open inquiry on Ligado’s new spectrum proposal,” said Paul Gallant, an analyst at Guggenheim Partners, in a research report. “We believe Ligado’s restructured spectrum plan stands a reasonable chance of winning FCC approval. “If Ligado’s path to market becomes clear, it (would be) a long-term positive for Verizon, AT&T and T-Mobile, and a potential concern for Dish’s spectrum valuation (if Dish has not already monetized its spectrum).” After emerging from bankruptcy, Ligado has reached agreements with tractor maker Deere ( DE ) and GPS device maker Garmin ( GRMN ), resolving issues over potential global positioning system interference. Scalper1 News
Scalper1 News