How a Sprint/T-Mobile tie-up could open the door to mobile for Dish
There are thousands of pieces examining Facebook’s blockbuster acquisition of WhatsApp — literally thousands of them — so instead of piling on, I’ll direct your attention to the Wall Street Journal’s preview of tomorrow’s earnings report from Dish Network. Dish has spent roughly $4 billion to pick up spectrum for both mobile and home use over the last several years, and it remains the most likely winner of the ongoing auction of H Block spectrum. I think Chairman Charlie Ergen is champing at the bit to jump into the mobile game, but the company will almost certainly need to partner or acquire an established player to lay claim to enough spectrum to do so.
As the Journal’s Miriam Gottfried writes, Sprint could provide an opportunity if it decides to roll the dice by making an offer for T-Mobile. I’ve written before that federal regulators would almost certainly nix such a deal, and reports have surfaced that Sprint has been warned that an acquisition would face huge hurdles. But there’s a chance a tie-up could get a green light if regulators require spectrum divestitures or new partnerships. And with AT&T and Verizon well established as the two dominant service providers, a new entrant like Dish could benefit in big ways.