Sprint, Dish to test wireless broadband service in Texas


Wireless service provider Sprint Corp and satellite television company Dish Network Corp said they will jointly develop a trial wireless service in Texas, in an apparent sign of improving relations between the companies.

Dish (Meridian, CO, USA) has been seeking a partnership with an established mobile operator to help it enter the wireless market. However, its efforts earlier this year to buy Sprint (Overland Park, KS, USA) failed after a bitter public battle with Japan's SoftBank Corp (Tokyo), now the owner of 80 percent of Sprint.

Investors have been anxious to see a concrete wireless plan from Dish and analysts see Sprint and T-Mobile US (Bellevue, WA, USA) as the most likely candidates for a partnership if only Dish Chairman Charlie Ergen can reach an agreement.

"While the press release does not announce a huge event, the fact these two parties have come together in some sort of partnership speaks loudly given their spotted (and at times acrimonious) history," Wells Fargo analyst Jennifer Fritzsche said in a research note.

Dish, which has spent about $3 billion on wireless airwaves and is looking to buy more, declined to say if the trial could lead to a bigger agreement.

Dish could potentially save billions of dollars if it puts its spectrum to use on an existing operators network rather than starting network construction from scratch.

Sprint, for its part, has long said it would be open to network sharing with other companies, including Dish, if it could reach a deal that makes sense.

While Fritzsche saw Tuesday's announcement as good news for Sprint, it only involved a limited fixed wireless service using Sprint's airwaves and Dish equipment.

The service will only be available in areas of Corpus Christi, Texas, in the middle of 2014 but the companies said they expect it to expand into other markets.

Dish said it would install either an outdoor router or indoor equipment for the service, and use a high-speed technology Sprint is putting in its own network.

Fritzsche said the agreement was good news for Sprint, which gained a lot of extra wireless capacity after its buyout earlier this year of Clearwire (Bellevue, WA, USA), a large spectrum holder.

Sprint shares were up 3.6 percent to $8.61 in afternoon trade on the New York Stock Exchange, while Dish stock was up 2.6 percent to $55.02 on Nasdaq.

(Reporting by Sinead Carew; Editing by Gerald E. McCormick, Dan Grebler and Tim Dobbyn)


Featured Reports

Content Delivery Networks (CDN) 2015
Content Delivery Networks (CDN) represent large distributed system of servers deployed in multiple data centers across the Internet. CDNs provide solutions for efficiently and effectively managing content of all types. Solutions include core services such as aggregation, management, and distribution of content as well as a variety of value-added functionality.


Cable Carrier Wi-Fi: MSO Take MNO Market Share
How does a cable provider gain a bigger piece of the telecom market pie chart? With a clever Wi-Fi strategy, cable providers are in a unique position to dominate the residential and business telecommunications markets. This is the portent of things to come in the very near future: an MSO as MNO play.


Structured and Unstructured (Big) Data in Telecom Analytics
This report provides the reader with a broad understanding of telecom data (structured and unstructured/big data) and related analytics. The report identifies market drivers and opportunities as well as forecasts for certain key growth areas such as deep packet inspection.


Affordable Market Reports on Big Data, IoT, CDN & More!
Access the exclusive new series of market research reports brought to you through the partnership of Mind Commerce research and TelecomEngine.com.
Browse the latest titles



Featured Events & Partners

GEN 15
Nov. 16-19, 2015

Omni Hotel, Dallas, Texas

The global gathering of networking professionals enabling the future of agile, assured and orchestrated services powered by CE 2.0, LSO (Lifecycle Service Orchestration), SDN and NFV.

Visit event website...