Dish Network (Nasdaq: DISH) covets more wireless spectrum--although its chairman, Charlie Ergen, or anyone in the company has yet to say why--thus it is no surprise that the satellite provider is bidding $1.4 billion for bankrupt TerreStar Networks. This is the second time Dish has chased TerreStar; the first attempt was mutually cancelled in February.
UBS analyst John Hodulik sees the most recent bid as a more compelling move by Dish, including the possibility that the satellite provider would partner with Sprint (NYSE: S) as it updates its 4G strategy with majority-owned Clearwire (Nasdaq: CLWR). Muddling that picture a bit, though, is Clearwire's minority owners: Comcast (Nasdaq: CMCSA), Time Warner Cable (NYSE: TWC) and Bright House Networks, who might have a say on whether a competitor can join the party.
Still, Hodulik sees the link between Dish and Sprint as strong.
"With Sprint's new Network Vision infrastructure, it is the likely partner were Charlie (Ergen) to build out a terrestrial network," he said.
For more:
- the Denver Post has this story
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