Dish says there's no chance it will buy T-Mobile's 800MHz spectrum2024-03-06 17:29 by DanielaTags: Dish, T-Mobile
Dish Network has backed out of plans to purchase low-band spectrum from T-Mobile US due to a lack of funding and continues to lose both executives and slash jobs. EchoStar, which took over control of Dish Network at the beginning of the year in a Securities and Exchange Commission (SEC) filing stated it has been unable to secure the funding necessary to acquire 14 megahertz of nationwide spectrum in the 800 MHz band for $3.6 billion that T-Mobile was required to offer to Dish Network as part of T-Mobile gaining approval for its purchase of Sprint. Dish Network last October paid T-Mobile US a non-refundable $100 million payment to extend the decision deadline on the spectrum purchase to April 1, when it might have more solid fiscal footing. "Throughout 2023, we were actively involved in negotiations with counterparties to obtain the financing necessary to exercise the 800 MHz purchase option," EchoStar noted in its filing. "However, we have been unsuccessful in our attempts to reach terms for a definitive financing agreement. Due to the relatively short time remaining before the 800 MHz purchase option's expiration on April 1, 2024, we no longer believe it is probable that we will exercise the option. Therefore, we reduced the probability weighted value of the spectrum option to zero." Dish Network initially held an option to back out of the purchase and pay a $72 million breakup fee. EchoStar took a $1.6 billion non-cash impairment during the fourth quarter of 2023 on the move, which took into account taking that purchasing option down to zero. Read more -here-
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