NEW YORK (The Deal) -- Having fed the flames of speculation for months, T-Mobile USA (TMUS) and Dish Network (DISH) are beginning to agree on the structure of a potential Dish purchase of T-Mobile that would give T-Mobile's customers access to Dish's $10 billion in unused cellular frequencies, according to the Wall Street Journal.
Outspoken T-Mobile CEO John Legere would become CEO of the combined company while Charlie Egen, Dish's top executive and founder, would become chairman in a merger, according to the paper, which said the sides have yet to agree on a price.
Both companies as well as industry observers have said such a deal could make perfect sense as consumers increasingly seek the ability to see entertainment and social media content on any device anywhere. Only phone companies with widespread broadband and cellular assets as well as entertainment partners are able to deliver, pushing a consolidation among phone companies, Internet stalwarts and TV providers.
In another major consolidation play, AT&T (T) and DirecTV Group (DTV) are working to merge in a $67 billion agreement that will unite two companies synonymous with telecoms and entertainment, respectively.
Dish couldn't immediately be reached to comment on the report and although T-Mobile parent Deutsche Telekom AG, the German phone company, refused comment, outspoken T-Mobile CEO Legere took to Twitter to label the report a "rumor that deserves no comment".