Dish Network: FCC Filing Paves the Way To Resolve T-Mobile Spectrum Purchase Challenge

Dish Network has filed the necessary FCC paperwork to gain approval to exercise its option to acquire T-Mobile’s 800 MHz spectrum licenses. The FCC paperwork is largely a formality, but the filing may indicate negotiations have grown tense between the two firms. Dish almost certainly wants to acquire these licenses, and we suspect T-Mobile would like Dish to buy them, but Dish doesn’t have the capital to easily fund the $3.6 billion purchase price. We believe it is in both firms’ interest to find a creative solution to this situation. Whether this move stems from Dish sensing a deal is within reach and trying to push T-Mobile to agree to specific terms or from T-Mobile losing patience in negotiations, a resolution appears to be near.