Dish reportedly seeks merger with T-Mobile

T-Mobile's parent, Deutsche Telekom, is also considering a separate deal with Sprint Nextel, according to Bloomberg.

T-Mobile employees busy getting iPhones to customers. Roger Cheng/CNET

T-Mobile and Dish Network may be the next two companies to walk down the aisle.

Dish Chairman Charlie Ergen informally talked to T-Mobile's parent, Deutsche Telekom, about a potential deal, according to a report by Bloomberg.

Deutsche Telekom, in turn, is considering a deal with Sprint Nextel, but may look to Dish if that merger falls through, the report said.

A deal would give Dish what it has badly coveted for a while: access to an actual wireless network that it can pair with its own satellite-TV service. With the satellite-TV business stagnating, Dish could lean on the faster-growing wireless business to keep its revenue and profits moving in the right direction.

CNET contacted Deutsche Telekom for comment, and we'll update the story when the company responds. T-Mobile, Sprint and Dish representatives declined to comment.

Dish's moves are part of the broader industry shifts that include T-Mobile's merger with MetroPCS, as well as Softbank taking control of Sprint. The smaller carriers are making moves in an attempt to better compete against the two largest wireless carriers, AT&T and Verizon Wireless.

Dish and Sprint both held talks with MetroPCS before the T-Mobile deal was struck, the report said.

Dish has been hoarding cash in anticipation of a big deal, and currently has the most cash among U.S. phone and television providers, according to Bloomberg.

 

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