VZ eyeing Dish (well at least its spectrum)

whitewolf8214

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Report: Verizon "very interested" in Dish's spectrum
Jun 20 2014, 12:16 ET | About: Verizon Communications (VZ)
The NY Post reports Verizon (VZ -0.3%) is eying Dish's (DISH +3.3%) high-frequency spectrum, estimated by analysts to be worth as much as $17B. One source states early, informal talks have been held.
Dish has been looking for a partner for its spectrum, which is particularly useful for handling 4G traffic in high-density urban areas. After Dish's Sprint bid was thwarted last year, Charlie Ergen has said he's open to a T-Mobile deal. But Sprint and T-Mobile are now eying a merger of their own (regulators permitting).
Verizon has been dealing with a 4G capacity crunch in many big metro areas; the carrier is responding by rolling out 4G in the high-frequency AWS band. Buying Dish's spectrum would give Verizon more long-term headroom.
Regulators probably wouldn't object to a deal, given Sprint and T-Mobile each have considerable high-frequency spectrum. But with Verizon having $110B in debt following the Vodafone deal, balance sheet concerns could get in the way.
The AT&T/DirecTV deal fueled speculation Verizon will make a bid to fully acquire Dish. But Verizon CEO Lowell McAdam quickly shot down the idea. http://seekingalpha.com/news/1811333-report-verizon-very-interested-in-dishs-spectrum
 

DishSubLA

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Charlie wants out of a biz he see's as having it days numbered, but one which Verizon needs to effectively compete with with other MVPD's.
 

mike123abc

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If it was THAT hard to use, that spectrum wouldn't be worth many billions of dollars. I'm skeptical that the government will just let Verizon hoard spectrum to eliminate future competitors. They're already unhappy with Sprint/T-mobile.

Current rumblings out of the FCC is that the 600MHZ bidders may be limited based on how much 700/800 MHZ they hold. Dish's frequencies at 2GHZ would not hinder VZ's bids any more than they already are. Dish's spectrum is valuable, but it is not the prime real estate. Dish has a lot of it though and it works great for all the outdoor cell phones (which is a lot of them at any given time), just not so great for steel and cement office buildings.

Now what would be interesting is if Dish manages to get some 600MHZ in the auction.
 

wallyhts

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Now what would be interesting is if Dish manages to get some 600MHZ in the auction.

I would bet 100% they will be bidding in the auction. Charlie say so on a investor conference call. The 600 MHz is beach front not the if we stand on a ladder on the roof maybe we can see the beach lol.


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mike123abc

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I would bet 100% they will be bidding in the auction. Charlie say so on a investor conference call. The 600 MHz is beach front not the if we stand on a ladder on the roof maybe we can see the beach lol.

One rumor was that VZ was waiting to see if Dish could get some 600MHZ which VZ might be prohibited from getting then start the merger/sell/etc talks...

Of course there is a rumor for everything...

Perhaps Dish will get 600MHZ, NFLST and merge with VZ... Unicorns and Rainbows everywhere!
 
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mike123abc

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http://www.fiercecable.com/story/ru...ed-dish-networks-wireless-spectrum/2014-06-20

Another article on the subject. Bland read except for the last paragraph which I just think is a Wall Street analysts' dream:

Verizon might also be pushed to act sooner rather than later because, according to a recent analyst report from JP Morgan, Dish soon might make a bid for T-Mobile (NYSE:TMUS), taking its spectrum off the market.

Somehow they managed to get VZ and T-Mobile both involved...
 
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