DISH Network Corp.
) is looking for several options to utilize its sizeable storage
of wireless spectrums. Recently, the company has executed a
Letter of Intent with regional wireless network operator,
NTELOS Holdings Corp.
The two companies will deploy a fixed-mobile broadband network
to offer high-speed Internet service to those areas which NTELOS
is currently serving. These include Virginia, West Virginia and
portions of Maryland, North Carolina, Pennsylvania, Ohio and
Most of these customers are located in the rural communities
where wireless and high-speed broadband is unavailable. According
to the Federal Communications Commission, nearly a fifth of these
American households lack broadband access. DISH and NTELOS
will install a reliable high-speed Internet service, which their
customers can access either from home or outside. NTELOS will
provide wireless towers and other hardwires and DISH will provide
the most valuable wireless spectrum licenses to this joint
DISH is primarily targeting the wireless spectrum of those
firms which went bankrupt. In 2012, the company purchased 2 slots
of the 40 MHz S-band wireless spectrum from TerreStar Networks
Inc. and DBSD North America Inc. for a consideration of $2.9
billion. A recent Bloomberg report stated that the company has
made an offer of $2 billion to purchase the wireless frequencies
of the bankrupt wireless wholesale service provider LightSquared
DISH is currently pursuing two takeovers. In Jan 2013, DISH
offered to purchase the remaining 49% stake of 4G WiMAX
) for $3.30 per share. In Dec 2012,
Sprint Nextel Corp.
), the 51% shareholder of Clearwire proposed a $2.97 per share
bid to acquire the remaining 49% of Clearwire.
In Apr 2013, in a major strategic move, DISH made a counter
bid of $25.5 million to acquire Sprint Nextel. Softbank of Japan
had earlier made a $20.1 billion bid for Sprint Nextel. DISH
network is trying hard to either acquire or collaborate with an
established wireless operator to build a nationwide viable
wireless network. DISH Network currently has a Zacks Rank #3
CLEARWIRE CORP (CLWR): Free Stock Analysis
DISH NETWORK CP (DISH): Free Stock Analysis
NTELOS HOLDINGS (NTLS): Free Stock Analysis
SPRINT NEXTEL (S): Free Stock Analysis Report
To read this article on Zacks.com click here.