Inside Towers reported the Department of Justice (DoJ) supports the DISH (NASDAQ: DISH) request for more time to buy low-band 800 MHz spectrum from T-Mobile (NASDAQ: TMUS). DISH sought a 10-month extension on an option to pay $3.59 billion for the licenses. The DoJ is recommending seven months to the U.S. District Court for the District of Columbia – until April 1, 2024.
Colorado supported the DoJ filing while several states, including Kansas, Nebraska, and Oklahoma, opposed DISH’s request, according to New Street Research. Arkansas, Florida, Ohio, and South Dakota took no position on the motion and Louisiana didn’t respond to the DOJ inquiries.
The DoJ noted that DISH is more likely to succeed as a national carrier if it obtains the 800 MHz spectrum that is the subject of the dispute. “Even if the court were to deny DISH’s motion immediately, it likely would take T-Mobile months to auction the spectrum and obtain FCC approval for the transfer to an alternative buyer,” notes NSR Policy Advisor Blair Levin in a client report.
However, the DoJ said T-Mobile can start lining up alternative bids immediately. DISH agreed to waive any rights to seek additional extensions “so that the spectrum does not lie fallow for an unknown period,” states Levin. DISH also waived its right to enforce the non-solicitation clause in the license purchase agreement so that T-Mobile can concurrently conduct the auction process.
The court will make the final decision in the dispute. However, “the odds have now shifted significantly in favor of a seven-month extension,” according to Levin. NSR believes the court will likely take its cues from the DoJ and grant the modified extension request.
By Leslie Stimson, Inside Towers Washington Bureau Chief
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