Dish Network's Wireless Win Could Nix Merger

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Dish Network's Wireless Win Could Nix Merger
One report says it shows the satcaster will stand on its own.
By Swanni

Washington, D.C. (March 21, 2008) -- Dish Network's win in the federal wireless spectrum auction makes it unlikely it will be purchased by AT&T or perhaps even satellite rival DIRECTV.

That's the conclusion of an analysis from Citigroup, as reported by Bloomberg News.

Dish Network, a sister network of EchoStar, has been rumored for months to be considering buyout deals from telco AT&T. The satellite TV service has been struggling to keep pace with better-financed competitors such as DIRECTV on services such as High-Definition TV.

However, Citigroup says Dish's decision to pay $711 million for 163 licenses for wireless spectrum indicates that it wants to go alone in the battle against DIRECTV and cable services.

`'This level of investment seems to signal that Dish plans to compete with the cable and telco firms on a standalone basis rather than sell to a rival,'' the report said, according to Bloomberg.

"It most certainly lowers the odds'' (of an AT&T deal), the report added.

The deal could also nix the possibility that Dish will merge with DIRECTV, another frequent rumor.

Citigroup said Dish may use the wireless spectrum to offer mobile video services.

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Swanni (Phillip Swann) is president and publisher of TVPredictions.com. He has been quoted in dozens of publications and broadcast outlets, including CNN, Fox News, Inside Edition, The New York Times, The Washington Post, The Chicago Tribune, The Financial Times, The Associated Press and The Hollywood Reporter. He can be reached at swann@tvpredictions.com or at 703-505-3064.

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