Dish Network’s Attempt to Acquire Sprint: What it means?

April 17, 2013

As revenue streams dry up in the telecommunications industry, many of the world’s largest companies are looking to expand through acquisitions. Over the past couple of years, Dish Network has expressed interest in acquiring cellular network providers. Last year, Dish proposed partnering with T-Mobile and battled with Sprint for buyout control over Clearwire.  Dish has also gained approval from the FCC to start building its own LTE Network.  Although Dish Network and Sprint are in two different industries, there are benefits of the proposed $25.5 billion deal.   If the merger goes ahead, Dish would be able to offer mobile, broadband, and television plans as a single package.  Dish would create the only company able to offer a fully-integrated, nationwide bundle of in and out home video broadband and voice services.  The merger would result in significant savings for both companies.  Dish estimates it could raise $37 billion in synergies and growth opportunities, including $11 billion in cost-cutting measures.  Finally, the proposed merger would allow Dish Network to provide better service to rural customers with inferior or no access to broadband services.  Dish could offer services to target underserved customers rather than compete with inner-city fiber-based services.

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