What EchoStar decides to do with its remaining spectrum could change the spectrum standings in the U.S.
Not only did the deal fill EchoStar’s coffers with cash, it possibly got the FCC and its Chairman Brendan Carr off its back. One of the things that Carr was mad about was what he considered to be spectrum hoarding on the part of the company, especially the 2GHz licenses that Elon Musk and SpaceX want. Musk and his satellite company want the spectrum for its direct-to-cell satellite service that will allow smartphone users to connect to an LTE signal from anywhere the sky is visible.
As EchoStar starts the process of transitioning to a hybrid Mobile Network Organization (MNO), Adam Rhodes, Senior Technology, Media, and Telecommunications (TMT) analyst at Octus Research, sent out a note to clients that said, “The deal suggests that substantial demand exists for additional EchoStar spectrum licenses…including its paired AWS-3 licenses.” Also hinting that more spectrum will be sold by EchoStar is a comment made by AT&T CEO John Stankey, who said, “I’m really happy that we’re first out of the shoot.”
EchoStar, as a hybrid MNO, won’t need the spectrum anymore. Mobile Experts Principal Joe Madden said that the company preferred to speculate on rising spectrum prices and never invested enough money to build out its network. “Now that they have finally scored a win, I believe that they will need to sell the remaining spectrum soon,” Madden told Fierce Wireless. “Their story of becoming the fourth big operator is unraveling and is no longer remotely credible.”
T-Mobile, Verizon, and SpaceX are said to be interested in EchoStar’s remaining spectrum
Another possibility is that the FCC could have EchoStar’s remaining spectrum handed over to “Someone who needs it,” according to Techsponential Founder Avi Greengart. AvidThink Principal Roy Chua believes that other MNOs might bid for the airwaves or that EchoStar might keep some of the remaining spectrum for its direct-to-device satellite services. At the same time, it could lease some of the spectrum it has left.
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