Dish Network Has Better Prospects Than Sprint to Buy T-Mobile
NEWS ANALYSIS: Satellite network provider Dish might have a reasonable chance of acquiring a wireless network while also keeping Sprint from buying T-Mobile.The future of T-Mobile has been up in the air for a few years now. First AT&T tried to buy the company in early 2011 only to have its bid blocked by the U.S. Department of Justice and the Federal Communications Commission. Then, earlier this month, rumors started circulating that Sprint was gearing up to buy T-Mobile, the nation's fourth-largest wireless carrier. Now the rumor emerges again, this time fueled by stories in Reuters and Investor's Business Daily that Dish Network is thinking of buying T-Mobile. I mentioned the possibility that Dish would set its sights on buying T-Mobile in July 2013 and now may be approaching reality. The reasons are fairly straightforward. Dish Network and its chairman, Charlie Ergen, have made no secret of the fact that the company wants a wireless carrier and it's got plenty of spectrum to bring to the party. Dish has already tried tenaciously to buy Sprint, but failed. T-Mobile is the only U.S. company left that Dish can buy to turn itself into a wireless carrier. Dish has some significant advantages over Sprint. First, Sprint's chances of getting regulatory approval to buy T-Mobile are slim. Both the DoJ and the FCC have made it clear they don't look favorably on reducing the number of national wireless carriers from four to three.
But even if the companies were to get approval, there's the immense cost of merging two companies with different wireless technologies. T-Mobile is already going through this, but it's doing it with MetroPCS, a much smaller regional carrier.