Dish Network may be the lucky fourth carrier needed for U.S. Justice Department approval of the Sprint/T-Mobile merger, according reports by the Wall Street Journal and Reuters. The announcement may come as soon as this week. Charlie Ergen has spoken about the importance of being at the inflection point of a technology change. It appears that DISH may also be at the right place at the right time.
“Dish Network is leading the race to scoop up assets that the Justice Department says Sprint Corp. and T-Mobile US must sell to save their $26 billion merger,” according to the WSJ.
The Reuters news service based its report on meetings between Dish Network Corp executives and the DoJ and the FCC. Additionally, in a federal filing, Dish explained “the need for a minimum of four nationwide mobile network operators.”
Also in the running for role of fourth wireless competitor are Altice USA and Charter Communications.
States’ Complaint Still in Play
Remember the states’ lawsuit? Jennifer Fritzsche, Wells Fargo senior analyst, said, with the states worried about a loss in competition, a fourth carrier could impress them.
“Some believe that if the DoJ approves the deal – with significant concessions that may include the creation of new national carrier – this lessens (kills?) the States’ argument that this merger will hurt competition,” she wrote in an Equity Note.
Judge Victor Marrero, U.S. District Court for the Southern District of New York, has been chosen to preside of the case. He doesn’t reportedly have a notable history of anti-trust opinions, Blair Levin, New Street Research, says he may be good for the states’ side.
“We think, however, that as a Clinton appointee, and as a person who worked in both local and state government, he is less likely to simply accept any argument from the Trump DOJ as gospel on antitrust economic analysis than other judges might,” Levin wrote in an NSR Policy note.