Deutsche Bank analysts Bryan Kraft, Clay Griffin and Sunny Kwak say Dish Network (NASDAQ: DISH) is still "in the driver's seat" in regard to its wireless spectrum assets.
The satellite TV operator's various options include a sale to Verizon (NYSE: VZ), or some kind of wholesale agreement with multiple carriers on a perpetual lease, according to a research note released by the Deutsche trio. They said that even though Dish and its designated entity partners drove up prices during the AWS-3 auction in January, "the major carriers, had they not had a significant need for more spectrum, could have opted to stay on the sidelines in an effort to cast doubt on spectrum demand/pricing ahead of future auctions and spectrum acquisitions. Instead, they paid what they had to in order to win some of the licenses they sought. We find it hard to believe that they're now 'all set' as far as spectrum, even with additional licenses they might acquire in the broadcast incentive auction." Article