- Resurgent talks about a merger between T-Mobile (TMUS -3.2%) and Sprint (S -1.8%) could mean a long-last entry into wireless service by Dish Network (DISH +0.2%), Barclays (LON:BARC) suggests.
- That's because of the concessions that would likely be required to get approval and a compliant Dish in the face of new barriers to its entry to the market, analyst Kannan Venkateshwar writes.
- Dish Network, of course, has amassed a sizable spectrum hoard but operates no wireless service for now. So it could claim that a combined Sprint/T-Mobile would hurt its chances of setting up MVNO service or its ability to negotiate handset deals.
- And Sprint may need to part with excess spectrum in that case, Venkateshwar suggests: “With Dish now owning critical component pieces of spectrum required to run a network, an ability to leverage the combined network of Sprint/T-Mobile could offer Dish the ability to enter the wireless business without having to invest in infrastructure … Dish could then essentially launch its own service or lease this network on a wholesale basis to any third party that wants to enter wireless.”
- Now read: What A T-Mobile/Sprint Merger Would Look Like
Original article