FCC Chairman Julius Genachowski’s reported plan to make only some of Dish Network’s current satellite spectrum available for use on a land-based cellular network was designed to place power restrictions on Dish Network and to prevent interference by setting aside another bandwidth next to the operator’s spectrum that would be auctioned for mobile data use.

   In a statement, Dish Network Executive Vice President and General Counsel R. Stanton Dodge said the operator’s response was based on reports about the proposal that have not been made public. “While the FCC would grant full terrestrial rights, its proposal to lower our power and emissions levels could cripple our ability to enter the business,” said Dodge.

   Dish Network has long been seeking authorization from the FCC to launch an LTE network following the demise of wholesale 4G-LTE provider LightSquared’s network. The operator wishes to expand beyond the pay-TV services sector and capitalize on a growing cellular data market.

   To accomplish these goals, Dish Network acquired licenses to 40MHz of spectrum from purchasing all assets from bankrupt firms TerreStar Networks and DBSD North America. Though the spectrum Dish Network currently holds is designated for satellite use and open for cellular service, the operator has hoped to avoid the interference problems that all but terminated LightSquared’s similar network proposal by utilizing frequencies that are further away from the ones used by GPS services and preventing interference.

   Dodge said the FCC’s proposed power limits on Dish Network’s LTE bandwidth would prevent it from fully using the spectrum. “Dish Network expects new approvals could add years to a process that has already lasted 20 months since it acquired two bankrupt companies in an effort to bring this spectrum to the market,” Dodge said in the statement. “The change would commence a lengthy processes at both the FCC and the 3GPP [Third-Generation Partnership Project], which defines standards for LTE.”

   Though the restrictions might hamper Dish Network’s desired timetable for a network launch, they would only affect the uplink portion of Dish Network’s spectrum. The operator would also be free to sell the spectrum to another mobile operator for profit.

   In October, Dish Network Chairman Charlie Ergen said it was possible that the company would consider such a sale when asked whether or not he might offer the spectrum to AT&T.

“We are not suicidal,” Ergen told reporters at a press conference held at the PCIA Wireless Infrastructure Association convention. “We prefer not to sell the spectrum, but our company has a responsibility to our shareholders and I am speaking as one of the largest shareholders … Getting into the mobile broadband business is going to be a tough project for us, but it’s not our first rodeo.”

   The FCC passed a law earlier this year that allowed the Commission to auction off the adjacent H Block of spectrum to help finance the planned FirstNet public safety network in the United States. The H Block comprises two 5MHz blocks of spectrum, which cellular provider Sprint Nextel is expected to bid for and combine with its current LTE spectrum.

   Dodge said Dish Network is hoping the FCC will alter its proposal as the Commission moves to a vote on final approval. “The good news is that this proposed order is not final and we urge Chairman Genachowski and the Commissioners to recognize that the Dish plan delivers on the greatest public interest,” said Dodge.

   Market research shows that the United States is saturated with new broadcast and broadband offerings, but also that consumption in the wireless broadband market is doubling every year. Ergen noted that there are at least four competitors in every corner of these markets.

   “There’s the cable company, the phone company, DirecTV and us, and there’s the Internet with an unlimited number of players. It’s a very competitive market and a decent business, but a mature one,” he said. “We want to get into the business in different ways. We want to come up with a better phone and apps for how to use it. We’re certainly not as experienced or as knowledgeable or have the scale of some of the bigger players … I can’t say how long it would take to monetize Dish’s investment if the FCC gave us the green light tomorrow, but we are ready to invest billions. We have $6 billion on the balance sheet. We already invested $4 billion for the spectrum licenses.”