This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

DISH's Offer for Clearwire Reflects Complex Landscape

What's more, this now raises questions about Sprint's long-term execution capabilities absent the valuable airwaves of Clearwire. I have no doubt that SoftBank sees Sprint as less attractive. Still, I don't believe that SoftBank will necessarily exit this deal. Sprint (with or without Clearwire) is still the third largest carrier in the U.S. with a significant reach.

There are other considerations here as well. For instance, although DISH owns a sizable portion of wireless spectrum, this alone does not make Clearwire immediately viable, nor does it transform DISH into a wireless-services company. Plus, there's also the Federal Communications Commission that has to preside over DISH's use of its spectrum.

If it sounds as if I'm doubting this deal, that's not the case. But I also don't think DISH's value automatically increases based on a completed transaction for Clearwire and/or MetroPCS (PCS), which DISH was rumored to have been interested in.

DISH still needs to execute. Plus it's not as though AT&T and Verizon have been overwhelming the Street with strong growth.

I don't disagree that they are making money. But the wireless market is mature. And with DISH's margins already trailing DirecTV and Comcast (CMCSA), taking on AT&T and Verizon, both of which have invested significantly in their networks, doesn't sound very exciting.

What remains exciting, however, is Charlie Ergen's leadership and watching all of this maneuvering unfold. The best thing about it -- it's commercial free.

At the time of publication, the author held no position in any of the stocks mentioned.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
Richard Saintvilus is a private investor with an information technology and engineering background and the founder and producer of the investor Web site Saint's Sense. He has been investing and trading for over 15 years. He employs conservative strategies in assessing equities and appraising value while minimizing downside risk. His decisions are based in part on management, growth prospects, return on equity and price-to-earnings as well as macroeconomic factors. He is an investor who seeks opportunities whether on the long or short side and believes in changing positions as information changes.
2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
CLWR $0.00 0.00%
DTV $0.00 0.00%
DISH $41.55 4.63%
S $2.55 -6.25%
AAPL $93.70 -0.60%


Chart of I:DJI
DOW 15,660.18 -254.56 -1.60%
S&P 500 1,829.08 -22.78 -1.23%
NASDAQ 4,266.8370 -16.7550 -0.39%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs