FCC approves Dish's entry into cell phone market

Dish could be a powerful competitor, breaking open the currnet oligopoly

Americans just can't get enough smartphones. And the cell phone companies just can't get enough bandwidth to service all the smartphones they've sold. But Dish Network, the satellite TV provider, just may crack the market wide open, muscling in on Verizon, AT&T and Sprint.

The Federal Communications Commission (FCC) has given unanimous approval to Dish's plans to use some of its satellite spectrum to build a new cellular network, adding new capacity to the crowded airwaves.

"These actions will help meet skyrocketing consumer demand and promote private investment, innovation, and competition, while unlocking billions of dollars of value," FCC spokeswoman Tammy Sun said, as agency chairman Julius Genachowski testified on Capitol Hill.

In prepared remarks, Genachowski said the FCC is committed to taking final action that clears the way for Dish's entry into the lucrative market.

Ground-based

Although Dish will be using some of its satellite spectrum, the cell phone network will be ground-based, eliminating the time lag that makes satellite telephones balky because of the delay in relaying signals to and from the satellites.

“The FCC has removed outdated regulations and granted terrestrial flexibility ...  We appreciate the hard work and focus of the FCC and its staff throughout this process," said Jeff Blum, DISH senior vice president and deputy general counsel. "The Commission has taken an important step toward facilitating wireless competition and innovation, and fulfilling the goals of the National Broadband Plan."

The commission has been working to open up new spectrum space for smartphones and wireless broadband use. It is expected to auction a block of frequencies adjacent to Dish's existing segment. Sprint Nextel is expected to be among the bidders.

Story provided by ConsumerAffairs.
Consumer Affairs

Comments

JCLifer 5 months, 1 week ago

Not sure I want a cell phone that goes dead every time a little rain cloud comes by.

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online_editor 5 months, 1 week ago

Perhaps that's intended only as humor, but just to clarify... As the article indicates, the proposed system would be at least partially, if not primarily, ground based, much like current cell services. In other words, the FCC approval re-allocates the spectrum of frequencies previously set aside for only satellite-oriented transmissions to a more flexible use that includes telecommunications on the ground.

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RobHunterJohnson 5 months, 1 week ago

Rick why is the forum not opened for the Jessica Lako editorial, or others responces to her? Rob

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online_editor 5 months, 1 week ago

Because letters to the editor are submitted and published with the author's identity, which is verified by phone, we require responses to follow the same criteria. We think that's only fair to someone stepping forward with their name to ask those who directly respond to do the same. --Rick Brown, online editor, News Tribune

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