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11/22/2024 05:22:10 am

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T-Mobile CEO John Legere Interested In Dish Partnership

T-Mobile, Binge On

(Photo : Reuters) T-Mobile's Binge On program promises to allow subscribers stream unlimited videos from selected content providers for free.

T-Mobile's parent Deutsche Telekom has expressed plenty of times its waning love for the U.S. carrier market, following a lack of profit in the past decade made even harder by the huge spectrum auctions happening every year.

This has not stopped the German-based wireless provider from giving T-Mobile USA's CEO John Legere a pay raise and committing to another year of investment on the American front.

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In an interview at a shareholder event, Legere confirmed that due to the lack of spectrum acquisition in 2015, T-Mobile would be interested in a deal with Dish Network.

The most recent wireless auction by the Federal Communications Commission brought in $44.9 billion, with AT&T, Verizon and Dish Network the largest bidders, all throwing more than $10 billion each at the auction.

Dish worked tax reductions by using three small companies to invest in the AWS-3 airwaves. T-Mobile wants to get a slice of that spectrum, potentially leasing it from Dish Network in exchange for a potential deal on the mobile side.

Something like Sling TV pre-installed on all T-Mobile tablets might not be a bad deal, but we expect T-Mobile to still need to pay top dollar to grab the AWS-3 spectrum.

Spectrum is one of the most desirable things for a U.S. carrier right now, allowing them to not only offer better wireless connection to customers but potentially lease the available network to smaller companies for a massive profit and return-on-investment.

T-Mobile clearly doesn't have the power to win against Verizon and AT&T on spectrum, but a partnership with Dish could turn the odds back in T-Mobile's favor.

Dish has not commented on a partnership with T-Mobile, but the satellite TV provider has been in the market for a wireless carrier, meaning it might be up for more than a partnership.

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