FCC Deals Setback to Dish Wireless Network Plans

Dish Network's hopes to start building a new wireless network have been dealt a setback by the Federal Communications Commission, which denied the satellite-TV provider's request for a needed waiver and opted instead for a formal deliberation that will take until the end of the year.

Dish needs FCC approval to use satellite spectrum to support a ground-based cellphone network and had hoped to receive a waiver this month. The FCC's decision isn't likely to doom Dish's plans but will push them back— something Dish Chairman Charlie Ergen warned last week would make the project riskier. The FCC aims to conclude its so-called rule-making process by the end of the year after taking public comment on changing how those airwaves are used. Dish said it was disappointed with the FCC's decision but said it would work with the commission to get the needed approvals. Ergen has said the company needs to package mobile wireless services with its pay-TV offerings to stay competitive with cable operators and phone companies that already can offer such bundles. Dish agreed to acquire the spectrum licenses last year, when it spent $2.8 billion buying satellite operators DBSD and TerreStar Networks out of bankruptcy court. The FCC approved the sale March 2.