Dish Network Corp (DISH.O) is figuring out next steps as it awaits a decision by U.S. regulators on its eligibility for a discount in a recent airwaves auction, executives said on Wednesday, after the company posted a significantly higher-than-expected quarterly profit.Federal Communications Commission officials told Dish last month that a staff review of the auction, which ended in January, found Dish affiliates SNR and Northstar ineligible for $3.3 billion in small-business discounts.Following the record-setting $45 billion auction, FCC officials reviewed $13.3 billion of winning bids by SNR and Northstar. A rejection of the discount would mean SNR and Northstar would have to pay $3.3 billion back to the FCC to keep the spectrum licenses they won in the auction.If the FCC decides against Dish, Chief Executive Charlie Ergen said on a call with analysts, the company and its affiliates will be left with three options: filing a lawsuit, not paying the money and incurring a penalty, or paying back the discount."I don't know exactly whether you would pay and then sue or just sue," Ergen said. "I don't think we know until we see the order."
ISH) Charlie Ergen may not be holding on to all those airwaves after all, saying on today's earnings call that the company may have to sell or lease spectrum after an expected order that would waive $3.3B in discounts from the AWS-3 auction.
