A recent Bloomberg report stated that satellite-TV operator
DISH Network Corp.
) has made an offer of $2 billion to purchase the wireless
frequencies of the bankrupt wireless wholesale service provider
LightSquared Inc. However, the approval from the Federal
Communications Commission (FCC) is a major concern looming over
this offer. FCC refused the use of this particular airwave as it
was interfering with the global positioning system. This is the
reason behind Lightsquared's bankruptcy.
For DISH, we believe that management is trying hard to develop
the company as storage for spectrums that can be used to deploy a
viable nationwide mobile network to offer bundled triple-play
wireless voice, broadband Internet and pay-TV network. 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 fromTerreStar Networks Inc. and DBSD
North America Inc. for a consideration of $2.9 billion.
In a major strategic move, DISH made a counter bid of $25.5
million to acquire
Sprint Nextel Corp.
). Softbank of Japan had earlier made a $20.1 billion bid for
Sprint. DISH network is trying hard to either acquire or
collaborate with an established wireless operator to challenge
telecom giants such as,
Verizon Communications Inc.
Earlier, DISH had purchased bankrupt movie-rental chain
Blockbluster Inc. However, the acquisition failed to provide the
required synergies to DISH and is currently considered as one of
its worst performing assets. Successful deployment of a
nationwide wireless network may enable DISH to install a
formidable video-on-demand service over a wireless network of
mobile handsets, such as smartphones and tablets. DISH currently
has a Zacks Rank #5 (Strong Sell).
DISH NETWORK CP (DISH): Free Stock Analysis
SPRINT NEXTEL (S): Free Stock Analysis Report
AT&T INC (T): Free Stock Analysis Report
VERIZON COMM (VZ): Free Stock Analysis Report
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