Verizon is running out of spectrum but could get escape hatch by leasing Dish's airwaves, analysts say

Verizon Wireless is going to run out of spectrum over the next few years but could get a lifeline if it strikes a spectrum leasing agreement with Dish Network, according to a report from analysts at New Street Research. In a research note, New Street analysts Jonathan Chaplin, Spencer Kurn and Vivek Stalam repeated a contention they made in July that Verizon will run out of spectrum capacity in the next two to three years even if it refarms all of the spectrum it is currently using for 2G and code-division multiple access (CDMA) services.

The analysts acknowledge that their "supply/demand analysis is inherently simplistic. Neither network engineers nor spectrum bands are created equal; Verizon has consistently delivered a better experience with fewer cell sites and less spectrum than peers. The analysis is intended to demonstrate that Verizon will run out of capacity before others will. If usage continues to grow, they will need significantly more spectrum or they will lose share."