Benzinga - by Anusuya Lahiri, Benzinga Editor.
DISH Network Corp (NASDAQ: DISH) stock is trading higher amid reports of the company winning government backing in the company's bid to purchase airwaves from T-Mobile US Inc (NASDAQ: TMUS). EchoStar Corp (NASDAQ: SATS), which Dish wants to merge with, is trading higher on Tuesday too.
Also Read: T-Mobile Expands Network Horizons: Acquiring Comcast Airwaves in $3.3B FCC-Backed Deal
U.S. antitrust regulators have urged a judge to extend the deadline to purchase airwaves from T-Mobile US to alleviate the financial strain on Dish. This request comes as T-Mobile prefers auctioning the frequencies rather than facilitating the sale to Dish, Bloomberg reports.
The Justice Department has proposed extending Dish's deadline to April 1, allowing them more time to complete the $3.5 billion purchase.
Dish had previously missed the August deadline for this acquisition. The U.S. authorities mandated the sale of the airwaves to reinstate competition that had diminished when T-Mobile acquired wireless provider Sprint Corp in 2020.
T-Mobile has opposed Dish's request for an extension, with several states involved in the litigation related to the Sprint deal echoing this sentiment. Dish, in response, has agreed to waive any further requests for additional time.
The Justice Department emphasizes the importance of Dish acquiring the 800 MHz spectrum in question, as it would enhance its prospects as a national carrier. This spectrum is valuable for mobile connectivity.
Meanwhile, T-Mobile will have the opportunity to explore alternative buyers for the airwaves and can initiate the auction process before the extended deadline of April 1.
Dish's EchoStar merger is seen as a means to ease financial burdens and provide Dish with the necessary resources to establish a new wireless network.
Price Actions: DISH shares are trading higher by 1.80% at $6.50 on the last check Tuesday. SATS shares traded higher by 1.69% at $18.65.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.