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.
Dish Network and T-Mobile US are in merger talks and are in agreement on what a combined company would look like, according to a Wall Street Journal report.
Dish Network is keeping all of its wireless options open and does not think that its potential choices are mutually exclusive, meaning Dish might both launch a wholesale wireless network and acquire a partner, according to financial analysts.
Dish Network is holding an impromptu meeting with financial analysts Tueday and could lay out its plans for its wireless spectrum, according to Wall Street firm New Street Research.
T-Mobile US is unlikely to strike a deal in the near term with any other cable or telecommunications providers aside from Dish Network, according to a report from Wall Street firm Macquarie Capital.
FCC Chairman Tom Wheeler said the commission's decision over whether or not to grant a $3.3 billion discount related to the AWS-3 auction to two "designated entities" affiliated with Dish Network will not derail the upcoming incentive auction of 600 MHz broadcast TV airwaves that is scheduled to begin in the first quarter of 2016.
Deutsche Telekom CEO Timotheus Hoettges said the company will consider any partnership for T-Mobile US that can improve profitability at the carrier, comments that again open the door to potential M&A.