T-Mobile US' new family plan promotion will likely put more pressure on its network capacity and speed up the timeframe for when it needs to make a deal with another company, according to financial analysts.
Speculation is still rife that Dish Network and T-Mobile US will forge some kind of deal, but Dish CEO Charlie Ergen said that he does not feel any pressure to make any kind of deal, though he declined to comment directly on a transaction with T-Mobile. "We're not feeling any pressure to do anything," Ergen said in an interview with the Denver Business Journal.
FCC Chairman Tom Wheeler has circulated to his fellow commissioners new competitive bidding rules for spectrum auctions that would block the kind of bidding strategy that Dish Network employed during the AWS-3 spectrum auction. The proposed rules would cap for the first time amount of bidding credits small businesses and so-called "designated entities" could get in auctions at $150 million.
T-Mobile US parent Deutsche Telekom, which is reportedly in talks with Dish Network about Dish buying T-Mobile, is also talking to Comcast about a possible deal, according to a report from German publication Manager Magazin.
Verizon Communications has no interest in buying Dish Network, according to Verizon CFO Fran Shammo.
Dish Network is in talks with banks to line up between $10 billion and $15 billion of debt financing for the cash portion of a transaction to acquire T-Mobile US, according to multiple reports.
As media and networks are converging, T-Mobile US and Dish Netwiork are reportedly talking about merging. The two companies share a mindset as aggressive challenger brands with a maniacal focus on cost cutting, something both companies have to focus on because they entered their respective markets late.
According to a New York Post report, Deutsche Telekom CEO Timotheus Hoettges is not as interested in a merger between T-Mobile US and Dish Network and would prefer a deal with Sprint.
A combination of Dish Network and T-Mobile US, which reports last week said is being discussed, could lead to a new bundle of wireless, satellite and over-the-top video services. But analysts and industry experts wonder if bundling the companies' services would make sense and if American consumers would buy them together.
Reports that Dish Network and T-Mobile US are in merger talks sparked a flurry of speculation from financial analysts about the potential ramifications for the wireless and cable industries. Some analysts think that the deal could increase pressure on Sprint, which would have no clear path to scaling up, and on Verizon Wireless which would be deprived of a source of additional spectrum it might have gotten from Dish. At the same time, analysts think a T-Mobile/Dish combination will be a major bonanza for tower companies.