Tag Archives: tmus

Dish Stock Pressured By Hedge Fund Amid Spectrum Auction

Dish Network ( DISH ) stock rose Friday after the company responded to reports that hedge fund Kerrisdale Capital Management has taken a short position in the satellite TV broadcaster and views its spectrum assets as overvalued. Bloomberg had reported Thursday that Kerrisdale had raised $100 million in a new fund aimed at shorting a large company that it didn’t identify, but that Bloomberg said was Dish. Dish Network, meanwhile, in an emailed statement to IBD Friday, said: “We understand Kerrisdale is shopping a negative report on DISH and has shorted our stock in an attempt to make a short-term gain while DISH is in an FCC-mandated quiet period. We will continue to manage the business for the long-term benefit of our shareholders as we have done over the last 35 years.” Dish Network has amassed some 77 MHz of radio spectrum, spending some $15 billion in the process, according to Citigroup. Dish, however, lacks a wireless partner to deliver mobile video services. Verizon Communications ( VZ ) has stated it’s not interested in acquiring Dish Network’s spectrum but might be open to a wholesale network deal , analysts say. Dish — along with AT&T ( T ), Verizon and T-Mobile US ( TMUS ) — have filed as bidders in a federal auction of airwaves now owned by local TV broadcasters. The auction, begun in late March, might drag on until Q4. Depending on the auction’s outcome, wireless firms may be more or less interested in partnering with Dish Network or buying its spectrum. According to Bloomberg, Kerrisdale said on Twitter that it is betting against a more-than-$10-billion company that it thinks is worth 60% to 80% less than its current price. Kerrisdale also reportedly tweeted “we’re still weeks — perhaps many weeks — away from actual publication.” Growth has slowed in Dish Network’s core pay-TV business. Dish last year launched its Sling Web-TV service, which has been gaining subscribers. Dish Network stock was up 5% in early trading in the stock market today , above 46. As of Thursday’s close, Dish Network’s stock was down 23% in 2016 and has slumped 33% in the past 12 months. Dish stock has a poor IBD Composite Rating of 23 out of a possible 99, meanings it’s performed among the bottom 23% of all companies on key metrics such as earnings and sales growth.

T-Mobile Could Gain From Spectrum Flood, But Not If Auction Drags On

T-Mobile US ( TMUS ) stands to gain from the availability of more radio spectrum than expected in a government auction of airwaves, though it’s not good for the wireless communications provider if the auction drags on, says a Goldman Sachs report. T-Mobile says it could spend up to $10 billion in the auction. Other bidders are expected to be AT&T ( T ), Verizon Communications ( VZ ) and cable TV firm Comcast ( CMCSA ). The complex “Broadcast Incentive Auction,” which started March 29, is expected to free up airwaves now owned by local TV stations. The Federal Communications Commission said Friday as much as 100 MHz of spectrum may be available for bidders in most U.S. markets. About 70 MHz had been forecast. The next step in the auction involves setting initial prices for the airwaves in specific cities. “While broadcasters will only sell if they get their desired prices, a large spectrum supply may yield attractive prices for wireless carriers,” Brett Feldman, a Goldman Sachs analyst, said in a report. “We view this as most positive for T-Mobile, which is looking to bolster its thin low-band spectrum position in this auction so it can provide coverage that is more competitive with AT&T’s and Verizon’s.” UBS analyst John Hodulik had a similar view. “Greater spectrum availability is a positive for T-Mobile, given its low-band needs and Comcast,” Hodulik said in a report. Shares in T-Mobile, controlled by Deutsche Telekom ( DTEGY ), are about even in 2016. T-Mobile stock edged down 0.4% in the stock market today . Analysts say one overhang on shares in Verizon, AT&T and T-Mobile is how much they may spend in the auction. Another view is that telecom mergers and acquisitions are on hold until the auction is over. While the auction has been expected to be over in the September quarter, it may drag on until the fourth quarter. That would be a negative for “ Dish Network ( DISH ) and T-Mobile, since many investors believe that their strategic options will be limited until the auction concludes,” said Feldman. Citigroup recently said Dish Network, which has amassed some 77 MHz of radio spectrum, could resume talks with Verizon over a possible sale after the auction ends.

SigFox ‘Internet of Things’ Plan Challenges AT&T, Verizon, T-Mobile

Internet-of-Things (IoT) startup SigFox says it will expand its wireless network using unlicensed frequencies to 100 U.S. cities, posing a challenge to AT&T ( T ), Verizon Communications ( VZ ) and T-Mobile ( TMUS ). The IoT refers to wireless technology that connects industrial, medical, automotive and consumer devices to the Internet. Wireless networks operated by Verizon and AT&T are competing with non-cellular technologies  — mainly Wi-Fi, Bluetooth and ZigBee — in IoT deployment. AT&T, Verizon and T-Mobile have been counting on the IoT, also called machine-to-machine communications (M2M), as a growth driver amid fierce price competition in wireless data services. Both AT&T and Verizon have been focused on Web-connected cars, as well as “smart cities” that have remote monitoring of street lights, utility meters and road conditions. France-based SigFox has been targeting industrial IoT applications. SigFox uses unlicensed, Wi-Fi-type radio frequencies to connect M2M devices. It’s well-funded , having raised more than $150 million from investors, according to TechCrunch. SigFox began testing its technology in Silicon Valley in 2014. According to SigFox, it has 7 million devices connected to its network in 18 countries. “U.S. is a huge growth market for Internet of Things connectivity, especially in smart cities, utilities, shipping and agriculture sectors that require large-scale and cost-effective communication,” said Allen Proithis, president of SigFox North America, in a press release. AT&T and Verizon are pushing the federal government to make high-frequency radio spectrum available for 5G services, which include low-power IoT applications.