Dish Network (NASDAQ:DISH) -- currently at the center of the proposed T-Mobile/Sprint (NYSE:S) merger as it weighs buying assets to become a fourth wireless carrier -- is sitting pretty, according to Cowen.
The company is in a win-win situation regardless of whether the asset deal goes through, the firm says, based on the "treasure trove" of spectrum it's built.
“That is, either Dish demands and receives a sweetheart deal (including concession with the FCC on the shot clock and AWS-3 discount dispute) or it walks away," Cowen says. "If the deal were to break, both T-Mobile (NASDAQ:TMUS) and Verizon (NYSE:VZ) could end up paying up for spectrum, turning to the Dish portfolio.”
Dish's spectrum is estimated to be worth $33B, and Cowen says it's worth far more than what's implied in Dish's stock price.
As for reports that T-Mobile and parent Deutsche Telekom (OTCQX:DTEGY) are pressing to limit any Dish operational partner to a 5% Dish stake, Cowen says that's "too low and likely a deal breaker," noting that if Dish does spend a few years building a $7B-$10B national wireless network, lacking expertise, it's then facing off against a "longstanding oligarchy of three incumbent carriers."
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