DISH Network Corp. (DISH): Is It Crazy Smart or Just Plain Nuts?

In the long run, item No. 4 may end up being the most important. Clearwire Corporation (NASDAQ:CLWR) has been building its 4G network using the TDD-LTE standard. That’s the same standard used by the nascent Chinese and Indian high-speed wireless networks. The AT&T Inc. (NYSE:T) and Verizon Communications Inc. (NYSE:VZ) high-speed networks are built on the FDD-LTE standard. If we’re talking economies of scale in building smartphones, 2 billion subscribers would trump 200 million. That could give carriers using Clearwire Corporation (NASDAQ:CLWR)’s standard a handset pricing advantage.

One service to do it all
With wireless communications and video delivery now getting lumped together, Ergen says consumers will eventually want to stop paying twice for essentially the same wireless usage.

With DISH’s video delivery know-how and Sprint’s telecommunications expertise, a combined company would be the best of both worlds, according to Ergen. “I mean, I think of it as a consumer, … I would love to be a DISH Network Corp. (NASDAQ:DISH) Sprint subscriber and pay one bill, and now I got my video everywhere, I know I got my voice everywhere, and know I got my broadband everywhere,” he said.

“We bring a lot of things to the party,” Ergen wrapped up. “[B]uying the third largest mobile operator and the third largest pay-TV provider together give us the chance together to become No. 2 or maybe No. 1.”

Charlie Ergen never thinks small.

The article Is DISH Crazy Smart or Just Plain Nuts? originally appeared on Fool.com and is written by Dan Radovsky.

Fool contributor Dan Radovsky owns shares of AT&T. The Motley Fool has no position in any of the stocks mentioned.

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