Andre Yoskowitz
9 Jan 2014 20:19
According to the WSJ, Dish Network will drop their $2.2 billion bid for the bankrupt spectrum owner LightSquared.
The company bid for LightSquared last May after it declared bankruptcy following the FCC denying its application to use L-block spectrum.
Dish has been actively looking to diversify over the past two years, but has been denied at every turn. The company tried to purchase wireless ISP Clearwire but was beaten out by Sprint. The company then tried to buy Sprint, but was outbid by Japanese carrier Softbank. LightSquared was another option for the satellite TV provider.
L-block spectrum is normally used for satellites, but LightSquared spent hundreds of millions redesigning networks to use the spectrum for 4G LTE networks. The FCC denied the application, saying the spectrum would interfere with current GPS services. Dish bid for the company for the spectrum, which they could use for satellite, or to re-apply with a different strategy.
LightSquared is currently working on a $4 billion restructuring proposal led by an investment group, but owners of the company's debt are split between the proposals and many wanted Dish to complete their bid.