NEW YORK (The Deal) -- In a TV interview this week, Dish Network (DISH) - Get Report Chairman Charlie Ergen seemed genuinely happy for the Federal Communications Commissionover how the agency's recently concluded blockbuster wireless spectrum auction turned out.

"Congratulations to the FCC," Ergen said on CNBC. The AWS-3 auction raised nearly $45 billion in face value, though the net proceeds will be closer to $41 billion because of discounts given to participants aligned with small businesses, including some of Dish's bidding groups. Dish was the second-highest bidder, topped only by AT&T (T) - Get Report in the gross value of it's bids.

While Ergen offered kudos to the FCC, he could also be forgiven if he gave himself a pat on the back. Dish stands to gain coveted wireless licenses from the AWS-3 auction. And Ergen stands to benefit personally from the run-up in spectrum valuations that his satellite-TV company helped drive.

Ergen is the largest creditor in LightSquared, a broadband service provider backed by Philip Falcone's Harbinger Capital Partners. The Dish founder stands to collect more than $1.5 billion for his claims if the bankrupt spectrum holding company can consummate its reorganization plan. Last year Ergen testified that he spent $700 million out of a family trust to buy the claims, without asking his wife.

LightSquard's fortunes have improved recently in large part because of an increase in implied spectrum values following the AWS-3 auction. Board member Alan Carr testified recently that the auction was "a game changer" that allowed LightSquared to explore a new range of options for debt or even equity financing -- something that has eluded the company since its May 2012 bankruptcy filing.

The AWS-3 auction greatly exceeded forecasts. Ergen described the sale as the first spectrum auction of "the post data era" in his TV interview Wednesday. "In auctions previously, spectrum was valued on voice calls and texting," he said. "Now it's all about data."

While the increased demand for wireless bandwidth drove prices higher in the AWS-3 auction, Dish played no small part. The satellite TV company bid aggressively for spectrum as part of three entities, two of which qualified for bid reductions because its members included small businesses.

AT&T and Verizon Communications (VZ) - Get Report argue that Dish, which has a $32 billion market cap, exploited rules by bidding through partnerships that qualify for small business credits. "Several commenters expressed frustration that the Dish entities, empowered with Dish's financing and an additional $3 billion in bidding credits, effectively bid bona fide small businesses out of the auction," AT&T stated in a filing with the FCC.

Dish and its partner entities were prolific buyers, purchasing more spectrum than Verizon and T-Mobile USA (TMUS) - Get Report.

"T-Mobile was outbid by Dish 132 times, but was outbid by AT&T only 26 times and Verizon only 16 times," Verizon complained to the FCC. On a gross dollar basis, the company added, Dish and its two affiliated "very small business" entities made up "50% of all new bids placed in the auction "nearly three times what Verizon bid and more than T-Mobile, Verizon and AT&T bid combined."

Maybe that's just sour grapes. But Ergen has acknowledged that he sometimes likes to "play in the mud" when chasing strategic assets. And there is no denying that his LightSquared investment looks a lot better given the lofty spectrum valuations Ergen helped produce.

LightSquared previously argued that Ergen's SP Special Opportunities LP improperly acquired its debt, saying that the purchases should have been blocked because he is affiliated with competitors. About a year ago, before LightSquared could pay Ergen to go away, the debtor proposed to give SP Special Opportunities a deeply subordinated note that would not pay cash for seven years.

The new cash payout, with full interest, marks a dramatic turnaround. The AWS-3 auction, in which Dish played an active and aggressive role, is a major reason that LightSquared can afford to settle the Dish chairman's claims.

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