Satellite czar Charlie Ergen, a former card sharp who has had investors scratching their heads over his latest puzzling moves, has finally showed his hand.
The chairman of satellite-TV operator Dish Network revealed plans yesterday to roll out an advanced high-speed Internet service that he will cobble together from a hodgepodge of wireless spectrum.
In a filing with the Federal Communications Commission, Ergen asked regulators for permission to transfer satellite licenses and allow him to create a next-generation mobile and terrestrial service, called Long-Term Evolution, that he hopes to bring to market by 2014.
The filing with the FCC helps explain Ergen’s recent acquisition binge, which included buying up wireless spectrum, bankrupt satellite operators and the Blockbuster video chain.
By deploying a nationwide broadband network, Dish is hoping to better compete with cable and telecom companies that offer faster Internet services.
Dish also indicated in the filing indicated that it wants to create a Netflix-style content service that can be accessed via tablet or phone in the future.
“Once the network is deployed, consumers will be able to use their devices for high-speed Internet access as well as a myriad of IP-based, over-the-top applications, including video,” according to the filing.
The FCC has 180 days to consider its ruling.
The plan, however, is still a ways off, and analysts have plenty of questions about whether Ergen will foot the bill alone or choose to partner with others. Bernstein Research analyst Craig Moffett suggested Sprint/Clearwire as possible partners, along with Leap Wireless and MetroPCS.
“Dish CEO Joe Clayton has repeatedly indicated in recent interviews that Dish Network is committed to being a major player in wireless — a strategy that he has confirmed again and again will include voice, video and data,” Moffett wrote in a note to clients yesterday.
Investors pushed up the stock thanks to the greater level of detail over the plan. The stock rose 3 percent to close yesterday at $21.99.
Wells Fargo analyst Marci Ryvicker believes Dish will spend an estimated $2 billion to $3 billion on its network plan — far less than the anticipated $8 billion to $9 billion.