Conx Acquires HC2 Broadcasting for 5G Spectrum Play
Conx Corporation, founded by Dish Network's Charlie Ergen, has agreed to acquire a 75% controlling stake in HC2 Broadcasting, pending FCC approval. The deal includes a $105 million bridge loan and aims to repurpose low-power TV broadcast spectrum for 5G wireless connections and datacasting. Conx has committed up to $75 million in additional equity funding post-merger.
Key Takeaways
- Conx Corporation, founded by Charlie Ergen, will acquire 75% of HC2 Broadcasting, while Innovate Corporation retains 25%.
- The deal involves a $105 million bridge loan from Conx's subsidiary to retire existing HC2 Broadcasting notes and cover transaction costs.
- Conx has committed up to $75 million in additional equity funding post-merger.
- The acquisition targets repurposing HC2 Broadcasting's low-power TV spectrum for 5G wireless and datacasting.
- HC2 Broadcasting previously petitioned the FCC to create a 5G station using low-power TV spectrum.
Why It Matters
This acquisition signals a strategic move by Charlie Ergen to expand Dish Network's 5G ambitions by leveraging existing broadcast spectrum, rather than solely building new infrastructure. By repurposing low-power TV spectrum, Conx aims to accelerate 5G deployment, potentially creating a new revenue stream for datacasting and one-way video services. Industry players should monitor FCC approval and the technical implementation of this spectrum refarming, as it could establish a precedent for utilizing broadcast assets for telecommunications and introduce new competition in the 5G service landscape.
Read full article at msn.com
Enjoy our coverage?
Add StreamingMeme as a preferred source on Google to see more of our streaming news at the top of your Search results.
Add as preferred source