Is DISH Network Corp. (DISH) Giving Up on Sprint Nextel Corporation (S) — Or Just Regrouping?

To that end, DISH has been amassing spectrum over the last few years but does not have the infrastructure or the expertise to use those frequencies. To build a wireless network from scratch would be prohibitively expensive. DISH Network Corp. (NASDAQ:DISH)’s best strategy, then, is to buy — or at least get access to — an existing wireless network.

That is why Sprint Nextel Corporation (NYSE:S) and Clearwire Corporation (NASDAQ:CLWR) have been the flames to DISH’s moth. Their 4G infrastructures — and additional spectrum licenses — are too essential to future DISH Network Corp. (NASDAQ:DISH) growth, if not survival, for DISH to give up on totally.

In April of last year, Ergen told a Silicon Valley audience that doing nothing could be fatal. “For us, not taking a risk is the bigger risk,” he said.

Even though it seems like DISH now has the edge in its bid to buy Clearwire Corporation (NASDAQ:CLWR) — with the Clearwire board of directors unanimously recommending stockholders vote to accept DISH Network Corp. (NASDAQ:DISH)’s $4.40-a-share offer over Sprint Nextel Corporation (NYSE:S)’s $3.40 — Sprint has thrown a lawsuit at DISH, which could cause problems. And if legal action doesn’t work, Sprint, with SoftBank’s financial help, could raise its per-share bid for Clearwire.

What then? Remembering what he said about risk, Ergen may then reconsider giving up on Sprint and indeed make a revised offer. I don’t think the fight for Sprint is over yet.

The article Is DISH Giving Up on Sprint — Or Just Regrouping? originally appeared on Fool.com.

Fool contributor Dan Radovsky has no position in any stocks mentioned, and neither does The Motley Fool.

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