Sprint Nextel Corporation (S) Battle: More Details

Changes in wireless services

Satellite Today believes this merger can lead to significant changes within the ICT sector. Dish’s acquisition can help the company get its LTE venture off the ground. Satellite analyst, Maxime Baudry, believes the merger will benefit both companies, and will also bring along Sprint’s partner, Clearwire Corporation (NASDAQ:CLWR), a 4G wireless provider with approximately 130 million U.S. customers.

Baudry believes the deal could result in some novel service offerings that combine Dish’s satellite infrastructure and Sprint Nextel Corporation (NYSE:S)’s LTE technology. According to Barron’s, the three companies will bring together spectrum licenses with a market value of $40 billion, a feat that has not been accomplished before in the wireless industry. Dish CEO, Charlie Ergen, plans to combine the company’s spectrum licenses with Sprint and Clearwire Corporation (NASDAQ:CLWR)’s wireless networks, enabling Dish customers to access television content on tablets and smartphones. This move can help Dish and Sprint compete more effectively with rivals AT&T Inc. (NYSE:T) and Verizon Communications Inc. (NYSE:VZ).

Conclusion

A DISH Network Corp. (NASDAQ:DISH) and Sprint Nextel Corporation (NYSE:S) merger will benefit investors by positioning the combined company to attract new customers through bundled satellite TV and mobile services. Sprint will also have the opportunity to stand out in the market by utilizing Dish’s expertise with video and movie content. Consumers and investors benefit if DISH Network Corp. (NASDAQ:DISH) wins since the merger will bring new services at better prices, which should favorably impact Dish and Sprint’s share prices.

The article The Battle Over Sprint Nextel originally appeared on Fool.com.

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