It is not uncommon for performance goals to be mandated when a regulatory body grants an enterprise permission to embark on a project. Such as the case with the FCC, who just gave Dish Network the green light to use some of its spectrum holdings for purposes of building out a terrestrial LTE network.
In addition to the expected power considerations that would be required, the FCC further released more details that Dish Network must adhere to in order to keep its licenses valid. The company, or soon to be “carrier,” will have to build out 70% of its network within 7 years, or 10% per year.
There are other performance metrics contained within that 7 year time frame. If the company is not on track with 40% completion in four years, then the remaining 30% will have to be completed within the following two years. Dish’s licenses to remaining uncovered areas (like the final 30%) will expire if the 70% completion threshold is not met. While there is no direct financial impact, the prospect of licensing at risk is indeed a very strong revenue generating motivator.
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Dish Network and Potential Partnerships
FCC gives Dish Network the green lightSprint may be intereseted in Dish partnership
We do not have any inside knowledge of Dish’s project plan, but think this goal is attainable. Dish has the benefit in many areas where it will not need to build out infrastructure from the ground-up. Tower space is leased all the time, and there are infrastructure owners, like Crown Castle International that own and maintain tens-of-thousands of towers across the US for nearly every carrier. So yes, we think this is within Dish’s reach, even more so if rumored partnerships develop.
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