Verizon Wireless is very interested in buying Dish Network’s spectrum, The Post has learned.
A top Verizon executive told a group of insiders in the last few weeks that the country’s No. 1 wireless carrier was eyeing the lucrative spectrum owned by Charlie Ergen’s satellite-TV company, a banker with direct knowledge of the conversation said.
Analysts have estimated Dish’s spectrum could be worth as much as $17 billion.
A second source close to the companies said the two companies have held informal, early talks about the spectrum.
Verizon’s appetite comes only weeks after it tried to quiet deal rumors.
CEO Lowell McAdam on May 20 said during an investor conference that Verizon was not interested in buying the $27 billion Dish.
“I don’t think owning a satellite company is something I’m interested in at this point,” McAdam said.
The CEO did not address Dish’s valuable spectrum.
Acquiring the bandwidths would help Verizon better stream videos in urban areas.
Plus, much of Dish’s spectrum is complementary to spectrum Verizon presently owns, a source said.
Much of Dish’s spectrum is important for short-range Wi-Fi communications.
The pressure may be building for Verizon to act soon.
The Federal Communications Commission last month set guidelines for selling government-owned spectrum and imposed rules that would make it harder — and more expensive — for the New York telecom to compete in those fall auctions.
“I would try like hell to skip those auctions,” a telecom expert said.
Buying Ergen’s spectrum would be a way to avoid that process.
Verizon might also be pushed to act sooner rather than later because, according to a recent analyst report, Dish soon might make a bid for T-Mobile, taking its spectrum off the market.
JPMorgan analyst Philip Cusick this week put forward the possibility that Dish might buy T-Mobile.
Ergen too might be motivated.
If he sold his spectrum for $17 billion, Dish’s shares could rise from $59.81, their closing price on Thursday, to roughly $70 a share, a source said.
Also, Ergen has until spring 2017 to connect 40 percent of his spectrum, or will need to return it to Washington.
It would cost Dish more than $10 billion to activate all of its spectrum.
Dish is presently rolling out a wireless fixed broadband service in Corpus Christi, Texas, that is rather antiquated and shows a lack of commitment to building a true wireless service, one source said.
Separately, in recent days Dish has postponed its annual meeting — and Ergen, in a little-noticed June 2 regulatory filing, updated his trusts. The update will allow, among other things, Ergen to dispose of his Dish shares in a change-of-control situation.
Verizon did not return calls, and Dish declined to comment.