Now that AT&T (NYSE:T) has walked away from its $39 billion bid for T-Mobile USA, Dish Network and Clearwire have seen a boost in their stock most likely thanks to their vast spectrum positions.
Dish is acquiring 40 MHz of S-band 2 GHz spectrum from TerreStar Networks and DBSD North America, and it's asking the FCC to waive its Ancillary Terrestrial Component (ATC) "integrated service" rule, and permit Dish to provide both dual-mode devices and single-mode terrestrial devices to customers who do not want the satellite function.
Dish's shares jumped more than 9 percent on speculation that AT&T may be interested in either buying the company or leveraging its spectrum.
"Relative to the T-Mobile deal, AT&T will have a much easier path for approval if it were to buy Dish," Tim Farrar, analyst at research firm TMF Associates, told Dow Jones. "Dish doesn't have an operating wireless network so there are none of the same concerns about competition."
Meanwhile, Clearwire (NASDAQ:CLWR), which is riding high from a renewed capital infusion from partner Sprint Nextel and a public offering, saw its stock jump nearly 12 percent today on fairly large trading volume. Clearwire has more than 100 MHz of 2.5 GHz of spectrum in all of its markets, but in the largest markets its holdings go all the way up to 160 MHz.
AT&T ended the proposed deal for the Deutsche Telekom AG unit after facing opposition from the U.S. Justice Department and the FCC, which both argued the merger would limit competition and could drive up prices for consumers and wireless competitors. AT&T had to turn over spectrum valued at $1 billion to T-Mobile as a condition of the deal's failure.
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