EchoStar shines brightly as carrier partner
EchoStar Communications announced last week that its DISH network has hit the 100,000 subscriber mark in just seven months, fueling speculation that the DBS company may be ripe for a merger or joint venture with a carrier.
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"EchoStar needs a partner to compete effectively against names like AT&T and DirecTV or MCI and News Corp.," said John Aronsohn, senior analyst at The Yankee Group. "There are already more DBS companies out there than will be able to survive in the long term."
A U S West/EchoStar alliance "makes a lot of sense," Aronsohn said, particularly because U S West is looking for ways to enter the video market within its own region.
A Sprint/EchoStar joint venture could be likely as well because Sprint is the only major interexchange carrier without a DBS venture, said Jimmy Schaeffler, president and chief executive officer of the Carmel Group.
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© 2012 Penton Media Inc.
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