T-Mobile/Dish Merger Deal Would Make Sense for Both, Analyst Says

A merger of T-Mobile US and Dish Network would make a lot of sense (see 1505210046) for both, Recon Analytics analyst Roger Entner told us. “T-Mobile and Dish would be perfect partners,” Entner said. “T-Mobile has an increasing customer base that is using up more of its spectrum. Dish needs access to a network as it is facing the slow arrival of linear television to provide on-demand video services. Dish has almost as much spectrum as T-Mobile, including the much touted low-frequency spectrum but has not built a mobile network and hence has no mobile customers. It is unlikely that such a combination would raise significant concerns at the FCC and FTC as it would utilize spectrum that is currently warehoused.” A partnership between the two “would create a market solution to what the parties are currently trying to achieve through regulatory intervention,” Enter said. “The combined entity might bump against the spectrum screen in some markets and would have to divest spectrum,” he said. Even after divestiture, the combined company would have the second most spectrum in the U.S. after Sprint, ahead of Verizon and AT&T, he said.