Recently, Bloomberg reported that satellite TV operator DISH Network Corp. (DISH) once again expressed its interest to acquire T-Mobile US Inc. (TMUS) and is presently in talks with Deutsche Telekom, the parent company of T-Mobile US.
Bloomberg also reported that DISH may seriously pursue the deal after the completion of the upcoming airwaves auction for advanced wireless access (AWS-3) scheduled to be conducted by the FCC (Federal Communication Commission) on Nov. 13.
DISH has created an extensive portfolio of spectrum, the most important component of wireless networks. We believe DISH’s attempt to enter the wireless market is a diversification strategy to counter pay-TV market saturation. The company enjoys the opportunity to collaborate with established telecom or tech companies to jointly establish a wireless network or monetize its spectrum holding for considerable profits.
T-Mobile US remains hot in the ongoing consolidation trend within the U.S. telecom industry. Since 2011, Deutsche Telekom has been exploring several options to divest its U.S. operations. AT&T Inc. (T) placed the first bid for T-Mobile U.S. After close scrutiny, the FCC thwarted AT&T’s attempt to acquire T-Mobile U.S., stating that it seeks a minimum four national carriers in order to maintain competitiveness.
In Jul 2014, Sprint Corp. (S) offered $16 billion for a little over 50% stake in T-Mobile U.S. Again the deal was thoroughly evaluated by both the FCC and the U.S. Department of Justice. The regulators decided for the same opinion. Consequently Sprint opted out from the race.
Last month, French broadband service provider, Iliad SA offered $15 billion for a 56.6% stake in the nation’s fourth largest telecom operator. However, T-Mobile US’s management immediately rejected the offer on ground of inadequacy. Meanwhile, the New York Post revealed that Iliad is pursuing several private equity firms and tech giants to help it to offer an enhanced bid for T-Mobile US.
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