When it comes to the cell phone and paid television market, both have the potential for big earnings, but Sprint and Dish are certainly not dominating their respective markets. In fact, the paid television market in itself has been struggling over the years due to numerous factors, which include, but are not limited to, Internet streaming and reduced income in conjunction with rising expenses.
If Dish were to buy Sprint, however, things could drastically change. Cell phone giants, Verizon and AT&T would be stuck marketing their cell phones, which would not be a horrible scenario for them considering their current market share. However, it is highly speculated that if Dish were to purchase Sprint, they would be making some pretty aggressive bundling options.
Nothing has been officially released to what kind of bundled packages Dish might offer if they bought Sprint, but you better believe they will be going after the market that AT&T and Verizon currently have. If they were to offer some type of extremely aggressive deal where your cell phone had unlimited minutes, texts and data along with a satellite TV subscription for far less than most people would pay for the two separately, there would be a lot of people who would not have otherwise considered using Sprint doing some serious thinking.
I mean, who wouldn’t essentially take a buy one, get one half off (or better) on two products or services they were going to spend money on to begin with? Sources close to the merger have reported that Dish is competing with Softbank, a Japanese-based company, to buy Sprint. Softbank made their offer of $20.1 billion to buy 70 percent of Sprint. Dish returned with the counteroffer of a cool $25.5 billion to buy Sprint out completely.
Dish’s offer may not sound quite as appealing considering it is just a few billion more than what Softbank has offered and they want 30 percent more, as in the whole company instead of 70 percent, than Softbank does. However, the merger deal may all come down to federal regulators anyway. The cell phone and paid television markets are very highly regulated for various reasons, which means that if a federal regulator has any say in it, they might reach the conclusion that the deal would go smoother if bought by another American based company, such as Dish.