According to CBS Marketwatch via WSJ:
AT&T Deal Puts Pressure on Dish
By: Ryan Knutson
Big communications companies are again starting to pair up, putting pressure on the ones that don't have a partner.
In the latest move, AT&T Inc.
T -0.92% agreed to buy DirecTV
DTV -1.73% for $49 billion to create a pay-TV and wireless-phone giant with about $160 billion in combined revenue and well over 120 million subscribers for various services.
The deal follows Comcast Corp.'s
CMCSA +1.42% $45 billion agreement to buy Time Warner Cable Inc.
TWC +1.38% , a merger that would create a huge broadband Internet provider and which forced executives across the telecommunications and technology industries to develop strategies for how to bulk up to compete.
Sprint Corp.
S +1.33% , meanwhile, has continued forging ahead on a possible bid for smaller rival T-Mobile US Inc
TMUS +2.39% .
Notably absent from the latest round of deal making is Charlie Ergen's Dish Network Corp.
DISH -0.78% , a satellite broadcaster, like DirecTV, but with its eyes on the wireless industry.
The AT&T deal kills two attractive options for Dish: an acquisition by AT&T and a merger with DirecTV. Many people on Wall Street thought a better deal for AT&T would have been to buy Dish, which has amassed valuable wireless airwaves, something carriers need to meet the growing demand from phones and tablets for streaming video and other data.
Now, Dish's options have been severely trimmed. The government requires the company to begin putting its spectrum to use within the next few years, and Dish lacks a network or a partner with which to do that efficiently.
Eyes also are turning to Verizon Communications Inc.
VZ +0.31% , which is bigger than AT&T in the wireless business but is still developing its video strategy. Verizon completed its $130 billion acquisition of U.K.-based Vodafone PLC's 45% stake in their wireless joint venture this year, and the U.S. carrier said it is focused on integrating its wireless and wireline businesses and isn't looking for major deals.
An expanded version of this article appears on WSJ.
My comments:
As a sub, I like the idea that Dish is staying like it is. I think Dish should wait to see what happens with this partnership. I do not always like the bundling aspect; sometimes it seems like it is more difficult to get rid of one service when you have multiple services with one provider. It could also work the other way around in that it may be difficult to get one service without another or more than just another service. However, I may be wrong from the business aspect. I do not know how customers will react. I noticed around here that Uverse really is not that great in terms of speed from friends and relatives who have it. Uverse actually is not available in our area according to the site even though we live close to them. We have local cable Internet that works better and faster. Sadly, after taking a Speedtest, the national grade was a D (33%) while the global grade was a C+ (55%). I can only imagine what their results would be...