Spectrum Valuation ($SATS) - Part 7
Part 7 of a multi-part series on the economics of spectrum and EchoStar’s spectrum portfolio
Part 1, 2, 3, 4, 5 and 6 are here.
Today we will focus on EchoStar’s H-Block. If AWS-4 is the main dish, then H-Block is like the salad that comes with it…it’s not bad, but you only eat it because the wifey will allow you to have the steak afterwards. In EchoStar’s case, the wifey is the FCC.
H-Block
2 x 5 MHz (paired)
1915-1920/1995-2000 MHz Bands
History
In early 2014, DISH acquired the entire nationwide PCS H-Block spectrum (1915–1920 MHz uplink / 1995–2000 MHz downlink) through FCC Auction 96, bidding exactly $1.564B - the FCC’s reserve price of $0.50 per MHz-POP, via its subsidiary American H Block Wireless LLC.
This acquisition was part of a broader strategic deal with the FCC: in late 2013, DISH requested waivers to reconfigure its AWS-4 spectrum (2000–2020 MHz) from uplink to downlink and to extend its AWS-4 build-out deadline to March 2021. In return, DISH committed to bid the H-Block reserve price, ensuring the auction's success and securing regulatory flexibility for its mid-band spectrum holdings. The H-Block now forms the lower portion of Band 70.
The H-Block had a couple of structural and technical issues. Chief among them was the interference risk: the downlink portion (1995–2000 MHz) sits directly adjacent to Sprint (T-Mobile)’s PCS G Block, raising concerns about potential interference between H-Block transmitters and PCS receivers. This adjacency created hesitation around device compatibility and network performance, particularly since existing LTE devices did not support H-Block at the time.
The FCC set a relatively high reserve price of $1.564 billion, which was effectively a fixed minimum reflecting a prearranged agreement with DISH. The narrow 5x5 MHz configuration further reduced the block’s strategic flexibility. As a result, the H-Block became a spectrum asset that only made sense within DISH’s mid-band strategy, rather than as a standalone asset.
The H-Block is currently unencumbered.
Compliance of Build-out Requirements
H‑Block was initially subject to a two-stage buildout schedule. DISH was required to provide service to 40% of each license area’s population within four years of the auction’s close (by early 2018) and 70% within ten years (by early 2024). DISH did not meet the interim benchmark and thus triggered an accelerated final deadline: instead of the original 2024 date, the 70% requirement needed to be met by April 29, 2022.
In September 2020, the FCC granted Dish an extension tied to its broader 5G deployment commitments: the final 70% population coverage deadline for H‑Block (along with AWS‑4 and Lower 700 MHz E Block) moved to June 14, 2023, with the requirement to offer 5G broadband service.
In 2024, DISH requested and received an extension from the Wireless Bureau that pushed out the compliance date to December 2026, with a further extension to June 2028, conditional upon meeting public interest commitments such as:
Achieve 80% population coverage with Boost Mobile by December 2024 and accelerate and expand milestones for over 500 licenses,
Deploy 24K towers by June 2025,
Offer $25/30GB low-cost plan, and
Provide spectrum-leasing access to Tribal and small carriers.
Based on FCC filings, it looks like 74% of the H-Block licenses has met the 80% coverage threshold, respectively.
Spectrum Characteristics
The H-Block faces several limitations that constrain its utility outside of DISH’s network. Structurally, H-Block’s 5x5 MHz pairing is narrow, offering limited capacity and poor spectral efficiency compared to broader mid-band blocks. Furthermore, because it sits at the edge of the PCS band, there’s little room for uplink expansion or flexible pairing with other bands. Without adjacent holdings like AWS-4, H-Block is essentially stranded and offers little standalone value.
The 1915–1920 MHz uplink block is an awkwardly stranded asset. It remains unused. When DISH structured Band 70 to unify its mid-band holdings into a commercially viable band class, it had to make strategic decisions about which blocks to include. In doing so, DISH effectively discarded the least valuable and most problematic piece of its spectrum holdings, the lower H-Block uplink. Poor baby! You hate to see it.
Recent Valuation Comparables (All Mid-Band Transactions)
See Part 4 for a summary of the transactions in the mid-band segment.
Potential Bidders
The standalone value of DISH’s H-Block spectrum is very limited due to its narrow bandwidth, interference concerns, and weak device ecosystem support.
Think of it like a thin slice of land next to your house, not useful by itself, but it gives you control over your fence line. You still include it in the acreage math when you go to the market to sell it.
See Part 6 for a discussion of potential bidders for the combo of AWS-4 and H-Block.
My Valuation
See Part 6 for a discussion of valuation.
My Key Takeaways
See Part 6 for a discussion of takeaways.