Citi Comments On Dish Network And Possible Mobile Data Network

Dish Network DISH and DBSD presented a Transfer Application to the FCC seeking a transfer of licenses held by DBSD to Dish. The filing held three key takeaways: Mobile data offering very likely, Likely consolidation of S-Band and 700 MHz spectrum could mean 46MHz of spectrum, and Focus may be on rural vs. major metropolitan areas. As part of the Transfer Application, Dish outlines its plan to utilize the S-Band spectrum at DBSD to offer mobile data. Citi continues to believe flipping of the spectrum for profit is unlikely. Citi believes the mobile data offering may be focused on underserved / rural locations given Dish's licenses in the 700 MHz spectrum is for rural locations and given statements provided in the Transfer Application. Citi believes this makes strategic sense as reduces direct competition with incumbent telcos. Citi has a $27 PT and Buy rating on DISH DISH closed Tuesday at $23.50