So let's say, DISH buys CLWR at $7.00/share. Makes an agreement with Sprint that it can have as much spectrum as it needs, in exchange for using Sprint's network. This gives Sprint so much money to quickly build out network, instead of it's current painfully slow buildout. And this is what is holding back Sprint now. DISH just recently stated it doesn't want to build it's own network, and is looking to partner with either CLWR, S, PCS... Of course, they know which one, just wouldn't say in the article.
posted this earlier on CLWR board, so posting it here: August 16th Reuters article.
"The net effect of the delay is that it has become (less likely) that we would be able to build a network from scratch ourselves," Ergen told the Denver Post.
Dish previously said it could become a major wireless player if it found a partner or acquired a wireless company. Chief executive Joe Clayton has said Dish would consider working with partners such as Clearwire Corp, T-Mobile USA, Sprint Nextel Corp, MetroPCS Communications Inc and Leap Wireless International Inc.
On an earnings conference call last week, the company said it expects a favorable resolution from the FCC in the next few weeks. The Department of Justice cleared the way on Thursday for Verizon Wireless to proceed with its $3.9 billion purchase of airwaves from big cable providers, but said the companies would have to abide by several conditions to gain final approval.
The FCC still needs to approve the deal.
Brean Murray analyst Todd Mitchell said Ergen's comments should be interpreted positively by investors because Dish's foray into wireless will be less risky with a partner that can cover some of the expenses.