Dish Network’s presence on the mobile sidelines is growing

[Commentary] Dish is sitting on a pile of unused spectrum, and the value of those airwaves is increasing thanks to a current auction at the Federal Communications Commission. Dish has seen its shares rise 19 percent since the auction began roughly two weeks ago due to perceived inflation of spectrum values. Here’s what Dish could be planning:

1. It could build its own network. Dish may accrue sufficient spectrum to build out its own nationwide (or even semi-nationwide) network, but Dish Chairman Charlie Ergen has long claimed Dish needs an established carrier partner to join the wireless game. Due to prohibitive build-out costs, the odds of a Dish network built from the ground up remains very slim. Earlier reports of a partnership with Google to provide a major disruptive mobile service are intriguing, such an endeavor would be an enormous gamble for both companies in a competitive market where multiple players are well entrenched.
2. It could sell its spectrum treasure trove. Many industry onlookers have long speculated that Dish simply invests in spectrum to sell high after its value inflates, and some have suggested the company may be bidding in the current auction only to increase the amount it could ask for its current airwaves. But Ergen’s desire to join the mobile industry seems sincere, and cashing out on that opportunity -- even to the tune of billions of dollars -- isn’t in his nature.
3. It could acquire or merge with an existing carrier. I’ve long believed a partnership with T-Mobile is Dish’s best route into the mobile industry: Dish has a load of extremely valuable spectrum sitting on the shelf, while T-Mobile has an increasingly impressive nationwide network but needs airwaves to continue to improve its nationwide coverage. Speculation of a tie-up between the two has only increased following SoftBank’s failed bid to swallow T-Mobile, but despite the apparent synergies there’s no indication the two companies are moving closer to a deal.