Sprint Nextel Corporation (S) Edges Closer to the Softbank Deal As FCC Rejects Dish Network Corp. (DISH)’s Wish

So what would happen to Dish’s dream after Sprint takes over the spectrum king?

Plan B for Dish
The satellite service provider wants to utilize its 40MHz of AWS spectrum to build a wireless spectrum to compete in the telecom sector. For this, the company has been looking to partner with a wireless company which would assist it to create the required network and offer wireless services. It would be sensible for the company to collaborate with an already established player. This is exactly why the company made a higher offer to Clearwire. Many analysts believe that Dish’s offer to Clearwire is a tool to get in partnership talks with Sprint.

However, Dish’s Chairman Charlie Ergen says that things aren’t proceeding the way it had been planned as the FCC delayed its approval. If the company is unable to find a suitable partner, it would just put its spectrum on sale. It is more than certain that Sprint, which already owns over half the company, would win the Clearwire deal leaving Dish without a partner.

The bottom-line
2013 is going to be quite an eventful year for Sprint. The company will continue losing subscribers due to its Nextel shutdown. In addition, huge capital expenditure for building the 4G LTE would also stress cash flow. However, both the Softbank and Clearwire transactions are going to give the carrier the required muscle to compete with the virtual duopoly of Verizon and AT&T in the long run.

The article Sprint Edges Closer to the Softbank Deal As FCC Rejects Dish’s Wish originally appeared on Fool.com and is written by Rajesh Marwah.

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