Dish Network, Verizon Bidding for Pieces of Sprint: 10 Reason Why

 
 
By Don Reisinger  |  Posted 2013-04-16 Email Print this article Print
 
 
 
 
 
 
 


5. Clearwire seems like easy pickings

So, why have both Dish and Verizon Wireless gone after Clearwire? It’s simple: the company is an easy way to take control over a large portion of the wireless market. Clearwire owns a boatload of valuable spectrum. Dish tried to make a bid to buy Clearwire back in January. But it didn’t look like this offer would success. So now Dish is going to try to acquire all of Sprint to get access to the Clearwire Spectrum as well as the Sprint network. Verizon, too, sees Clearwire as an easy target because it can lease spectrum at a relatively low price. It’s a win-win.

6. AT&T can’t make a move

Verizon’s desire to play with Clearwire relates directly to the fact that right now, AT&T is licking its wounds. The company last year had hoped to acquire T-Mobile, but couldn’t pull it off after the government stepped in. AT&T doesn’t want to get back into that battle, leaving open an opportunity for Verizon and Dish.

7. T-Mobile won’t make a move

There’s no chance whatsoever that T-Mobile would try to make a move for Clearwire. The company is in the middle of a shareholder revolt with its proposed MetroPCS acquisition and it’s trying to keep itself relevant in a market that doesn’t make it all that easy. With T-Mobile and AT&T out of the way, it only makes sense for Verizon to get in the mix.

8. The value is there

The value in Sprint’s assets cannot be underestimated. Despite its problems, company is a highly respected carrier and it has tens of millions of customers that Dish wants. Meanwhile, Sprint’s 50 percent investment in Clearwire, which some deemed a dumb move, is turning out to be one of the most sought-after aspects of its portfolio. Dish and Verizon are going after Sprint assets for one reason—they’re valuable.

9. It’s the nature of the marketplace

If there’s one thing that anyone should know about the wireless marketplace, it’s that when one company makes a move, all others get nervous and try to do something bigger and better. It happened with T-Mobile; it happened with Clearwire; and now it’s happening with Sprint. The wireless industry is packed with companies in constant fear of being left behind. And the latest Sprint/Clearwire moves show that.

10. Verizon’s move is easier to accept

Verizon isn’t dumb. The company watched as its chief competitor, AT&T, struggled to acquire T-Mobile. Verizon also knows that the U.S. is increasingly scared of consolidation in the marketplace. So, why shouldn’t Verizon try to lease spectrum from Clearwire, and not try to acquire it outright? The decision makes it far more palatable to regulators, and puts Sprint in a tough position. It’s a win-win.

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