DISH (DISH), Time Warner Cable (TWC) Accused of ‘Spectrum Hoarding’ by NAB

Congress has been asked by the National Association of Broadcasters (NAB) to investigate Time Warner Cable (NYSE:TWC) and DISH Network (NASDAQ:DISH) to find out whether or not they're hoarding spectrum.

Spectral scarcity is what the FCC and the White House are using as justification for repurposing broadcast spectrum for advanced wireless services. But in a letter to key lawmakers on the U.S. House Energy and Commerce Committee and the Senate Commerce Committee, NAB CEO Gordon Smith explained that the White House's characterization of wireless spectrum as being in "short supply" is in fact perhaps inaccurate. He noted that many communications carriers are simply sitting of vast unused swaths of the stuff, and alleged that they plan to continue to hoard in order to sell the channels at a handy profit later on, as demand continues to outstrip supply.

Smith has identifed DISH Network and Time Warner Cable as two of the worst offenders, and called for a GAO-led inventory of spectrum across the United States, used and unused.

"The pattern of spectrum speculation from Time Warner Cable and Dish Network is especially troubling given that the FCC's National Broadband Plan proclaimed a year ago that there is a 'looming spectrum crisis,'" wrote Smith. "If America is truly facing a spectrum shortage, then it is imperative that policymakers receive an unbiased and thorough report on how private companies like Dish, Time Warner Cable and government agencies are using or warehousing this precious resource."

Wireless industry association CTIA called NAB's allegations "baffling."

Time Warner Cable closed Friday at $72.01, down $0.47, or 0.65 percent. Dish Network closed at $23.50, down $0.27, or 1.14 percent.