Fitch: The DISH/Sprint Deal Is Good, But It Will Cost
The DISH/Sprint story (CTDaily, 04/15/13) still has legs, with Fitch Ratings saying DISH’s $25.5 billion bid for Sprint Nextel “would create a compelling combination of assets, spectrum and service offerings that could uniquely position the combined entity with a stronger overall competitive position.” According to the ratings company, a combined DISH/Sprint could connect across multiple platforms and devices to make hay from the anticipated growth of both fixed and mobile video-centric, high-speed data services. However, there are concerns. “We expect a combined DISH/Sprint would have significant network capital investment requirements over a multiyear period beyond current expectations,” Fitch notes. “In addition, further investment would be necessary across the current network to permit the use of DISH and Clearwire spectrum. While the investment could potentially improve competitive position by allowing the combined companies to increase the value of service offerings to consumers, it also carries material long-term execution risk via successfully building and integrating the two.”