The merger of Dish and T-Mobile will be a threat to all network carriers.
T-Mobile US Inc. is all set to diversify its portfolio and is in talks with Dish Network Corp. – the satellite television provider for a possible merger reported Reuter in accordance with a source close to the company. According to the Reuter analyst, the collaboration between T-Mobile and Dish Networks is a potential threat to AT&T Inc., Sprint Corp. and Verizon (VZ) Communication Inc.
If Dish joins hand with T-Mobile it can have a positive impact since the services of Dish that include a dynamic video portfolio, sports, entertainment and other content. When it comes to wireless subscriber, the merger will make T-Mobile to become on par with Sprint. Apart from this, the add on of wireless subscriber to their database would benefit Dish since it will now be able to come on par with Hulu and Netflix Inc.
If this merger happens, Dish Network will have more advantages since the company does not have a wireless platform of its own. Likewise, T-Mobile will have a more diversified spectrum to cater to. Dish currently has a $50 billion airwave license which is essential for network to get operational.
On the other hand, Sprint is anticipating a delay in this merger since the T-Mobile is already preoccupied and wishes to divert its focus from competition since it now wants to gain more subscribers. The chief executive officer of Sprint, Mr. Marcelo Claure mentioned in a statement, “There has been so much speculation about what Charlie does at Dish. We’re going to wait and see.”
T-Mobile is about to make a relatively smart move and should not delay this project since a possible merger with Dish will actually allow them to improve their services and get a broader audience to cater to.
Another reason for T-Mobile to speed up the process is that the other wireless network carrier like Sprint and Verizon Communications are trying their best to make a mark in this domain and are coming up with top notch services. So if T-Mobile succeeds in pulling this deal off then they can actually ignite competition which will become a major issue for their rivals.
This acquisition is one of the talks of the town since Dish has great potential to become a video streaming giant so if T-Mobile uses this to expand then they will become better than all their competitors. This is a good opportunity for T-Mobile to capitalize on and it will be better for them to make this happen as soon as possible.
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