Will Dish buy T-Mobile?

8 Sep

For several years T-mobile’s parent company Germany-based Deutsche Telecom has been trying to find someone to buy Bellevue-based T-Mobile. Twice they have been in talks with Sprint, they talked with AT&T and Dish. All of the talks ended up the falling through for various reasons. Now, almost 3 years later Dish is back for a second go around as Charlie Ergen, CEO of Dish Network, contacted the Germany-based company.

So far there has been no details given on any offer that Dish Network has placed on the table. According to a report by Bloomberg Mr. Ergen is waiting until after the AWS-3 (advanced wireless services) spctrum auction in November before he releases any details of the negotiations.

The incentive auction offers opportunities for competitive providers and new entrants to bid on and win much-needed low-band spectrum, which will facilitate the deployment of mobile broadband services,” Dish SVP Jeffrey Blum wrote in a filing.

The Colorado-based satellite TV service may not be the only one in negotiations with Deutsche Telecom. According to Reuters news service the France-based Iliad Telecommunication is getting set to improve on the bid that Deutsche Telecom rejected last month. Where Iliad is looking to other companies to help them put together a bid for T-Mobile it would seem that Dish has the upper hand in any bidding war.

Over the last year T-Mobile’s value has seen an increase of 24% and is expect to keep raising. Meaning that waiting a couple of months for a commitment from either of these two groups could work in Deutsche Telecom’s favor. The increase has been mostly due the T-Mobile’s CEO John Legere’s no contract plans that has seen the customer base grow at a rate that could see the Bellevue-based company overtake Sprint to become the number 3 mobile service provider.

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