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| UPDATE 1-MetroPCS eyes TerreStar assets -- source http://www.fta-n-more.net/forum/viewtopic.php?f=9&t=1535 |
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| Author: | The_Hatta [ Thu Dec 16, 2010 9:28 pm ] |
| Post subject: | UPDATE 1-MetroPCS eyes TerreStar assets -- source |
* Terrestar asset sale could be worth more than $1 bln * MetroPCS needs more spectrum for high-speed service * Deal less likely unless spectrum rules change--analyst MetroPCS (PCS.N) is considering buying assets from bankrupt satellite operator TerreStar Corp (TSTRQ.PK), a source familiar with the matter said on Thursday. The Wall Street Journal, which first reported the news, cited unnamed people familiar with the matter saying MetroPCS is "among parties that are considering a potential deal" that may be worth more than $1 billion, but added no offer has yet been made and may never happen. MetroPCS declined comment. A representative for TerreStar was not immediately available. TerreStar said it had $1.4 billion in assets, including wireless airwaves when it filed for bankruptcy in October. MetroPCS is a wireless operator that specializes in cheaper services, but it needs more spectrum as it upgrades its network for high-speed data services. MetroPCS has also said it could be open to a partnership with LightSquared, another satellite company looking for more funding to build a mobile network that would rent space to other service providers on a wholesale basis. EchoStar Corp (SATS.O), a provider of satellite communications equipment provided financing to TerreStar to allow it to keep operating while in bankruptcy. Tim Farrar, a satellite industry consultant at Telecom, Media and Finance Associates said satellite companies have had difficulty selling wireless spectrum to cellular providers because the holder must offer integrated satellite and terrestrial phone services, which is a costly prospect. As a result, he said any MetroPCS deal may be contingent on a change to the rules governing TerreStar's spectrum. "All the cellular carriers have looked at this satellite spectrum in the past. Nobody has made a formal offer to date," Farrar said. "A MetroPCS deal would be less likely to come to fruition unless the FCC changes the rules," he added, but noted the company would likely have to pay a higher price for the spectrum in the event of any regulatory change. |
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