DISH Network Corp. (DISH) Discloses Its Intention To Partner With Sprint Nextel Corporation (S)

However, this would be possible only if Dish wins the Clearwire deal. Ergen has made it clear that it would look to partner with another telecom operator rather than speak with Sprint in case it loses the bid. Dish also realizes that it is essential for the satellite provider to partner and collaborate with a matured telecom player who has an existing wireless network. This is necessary as the US telecom sector is an already established industry with fierce competition and if Dish wishes to grab a chunk of wireless market share then it needs to offer good service at a competitive rate.

In case Dish loses the bid and fails to find another telecom partner, what is the alternative for the company?

Plan B
Dish would be in a better position to make a judgment and decide on an alternative course of action by the middle of this year when FCC would pass its final decision on the pending merger deals in the industry. Once the shareholders’ votes come up, it would be easier for Dish to assess the competitive landscape and decide on what is the next best step. Ergen says that if Dish fails to acquire Clearwire, it would try exploring other options to build its wireless business. But if the company still doesn’t get to partner with a suitable wireless operator, it would put its spectrum for sale.

The road ahead
The current year outlook for the company remains uncertain as it depends on whether the satellite provider is able to pair with a wireless company to offer mobile broadband service or decides to put up its spectrum asset for sale. Given Clearwire’s soft corner for its largest wholesale customer Sprint, Dish’s chance to strike the deal remains poor. Amidst all this, where is Dish headed remains a difficult question to answer.

The article Dish Discloses Its Intention To Partner With Sprint originally appeared on Fool.com and is written by Rajesh Marwah.

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