Dish Network's bid to become a fourth U.S. mobile carrier may cost billions...
) received regulatory approval on Friday for their $26.5 billion merger on condition they sell Sprint’s prepaid wireless business and some cell sites to Dish, paving the way for the satellite provider, which owns $20 billion worth of spectrum, to enter the wireless phone market as the No. 4 company.
“I’m not going to convince anybody in this call, so I’m going to quit talking, right?” Ergen said during the first-quarter earnings call as analysts questioned the wireless strategy. “But just watch us over the next couple of years.” Working with wireless network engineers, New Street determined that Dish’s costs to build a network would be much lower than competitors because it is only building one network, compared to rivals who have to maintain multiple networks, and Dish’s network will be virtual and can save money on the costs of maintaining physical wireless towers.
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