Dish Network has been looking to get into the wireless industry for quite some time now. They battled with Softbank for Sprint about a year ago, and have added more spectrum to their collection this year. We’ve been thinking that somehow Dish would be involved in this merger with Sprint and T-Mobile that’s been rumored, but now a report out of the NYPost is showing that Verizon and Dish are in talks for Verizon Wireless to buy their spectrum. Analysts have said that Dish’s spectrum is estimated at about $17 billion. Although, Verizon’s CEO Lowell McAdam stated back in May that they were not interested in Dish. McAdam basically said they were not interested in owning a satellite company. Although he did not say a word about the spectrum.
The additional spectrum that Verizon is looking to pick up could help them get better speeds and bandwidth in urban areas, which is always going to be a big help for Big Red, since they have so many people on their network, their speeds aren’t quite what they used to be. Which is why they rolled out XLTE a few weeks ago, which brought many of us some crazy speeds, topping out at nearly 96mbps. This extra spectrum from Dish would definitely help them out.
Additionally, the spectrum that Dish Network owns is complimentary to what Verizon already owns. Verizon may have to act soon since the FCC has made it more difficult for Verizon – and AT&T for that matter – to participate in the federal spectrum auctions, which the 600MHz spectrum will be auctioned off next year. The reason why the FCC made it more difficult was so that the smaller carriers, with smaller wallets (That’d be T-Mobile and Sprint) would have a fair chance at picking up this spectrum, which both of them need really bad.
It’ll be interesting to see what happens with Dish and Verizon. I’m sure Dish will get plenty of cash for the spectrum they do have.