Satellite TV service provider Dish and T-Mobile US to merge: reports

Satellite TV service provider Dish Network Corp and T-Mobile US Inc are merging in a deal that could trigger more consolidation in the telecommunications industry.

According to news reports Dish and T-Mobile were in talks and close to reaching an agreement about how the merged company would be structured.

As per early reports Dish CEO Charlie Ergen would become the new company's chairman of the board and T-Mobile CEO John Legere would take to the helm as the CEO of the combined company. Further details were not available. 

Meanwhile, cio-today.com reported that according to Jeff Kagan, an independent technology analyst, T-Mobile had tried to merge with different wireless carriers over the last several years and every attempt had failed.

Rather both AT&T and Sprint tried to buy the company but their attempts were thwarted by federal regulators.

According to Kagan, the potential merger between Dish Network and T-Mobile USA might be the one that won approval. He added, the reason was it would not transform the wireless industry.

Dish not being a wireless carrier, only the ownership of T-Mobile would change hands. He added, at this early stage he thought the chances were much better for a deal like this to be approved.

Meanwhile, according to commentators, Dish's trove of wireless airwaves, or spectrum, would see the No 4 US wireless company T-Mobile emerge as a stronger competitor to Sprint, the current No 3, Reuters reported.

Sprint is in the middle of a turnaround plan to plug subscriber losses and improve its balance sheet. The company, which had excess spectrum of its own, had burning up cash as it signed up subscribers and upgraded its wireless network.

According to Craig Moffett, an analyst with MoffettNathanson, it was running out of good options, Reuters reported.

Kurn and Moffett were in agreement on one route - Sprint itself could bid for T-Mobile.

After the company abandoned a deal of the type last year over regulator concerns, the question was whether it could find a way to try again, ideally waiting until after the 2016 US presidential election, assuming a more business-friendly Republican president won the White House.