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A strange endorsement as Sprint contemplates accepting a higher bid from Dish

In a letter to chairman of the FCC Julius Genachowski, CEO of Intel Paul Otellini has expressed that he believes Softbank is a better choice than Dish to buy Sprint. Following a trip to Asia where he met with Softbank, which an Intel spokesperson refers to as "a business partner", Otellini chose to write to the FCC to encourage the company's bid for Sprint regardless of the fact that Dish is offering a higher amount. Otellini's recommendation is one based on competition, he says:

"Son-san’s vision to build a high speed competitive third national network is very compelling. We need this competition in the wireless space as the ATT/Verizon model is not giving that to consumers at this time."

No further explanation is given as to why Softbank would provide a better competitive chance for Sprint than Dish, but CEO of Softbank Masayoshi Son has proven in the past to be a bit of a mover-and-shaker in the industries his company is a part of. That may not be enough for Sprint to consider its offer, however, as the bid from Dish is still over $5 billion higher. Sprint is expecting to vote on its current deal with Softbank on June 12th.

Source: Reuters; FCC

 

Reader comments

Intel CEO to FCC: Softbank is the best buyer for Sprint

23 Comments

No, Vodafone owns a percentage of Verizon,
that hasn't helped international calls to be cheaper
to Europe.

Woot, thanks Intel. Everything I've read leans towards Softbank being the better partner as well. AC really isn't qualified to make commentary on mergers and acquisitions anyway, so if you are following this story be sure to get informed with some other sources as well. WSJ has had some decent comparisons.

He didn't really say he was. He said he agreed with intel, but then encouraged people to become more informed by looking elsewhere.

How did you read his comment?

What I mean is you can't boil it down as just $5 billion. There are lots of differences in the two proposals.

WTF? Well neither company has publicly made the contracts open to the general public at this time. So no one can make any informed decision. This is just for opinions and what people would like to see happen.

If Google is still partners with Dish, I'd want a google carrier

Exactly. Simplistic statements equating raw numbers with "better" make headlines but not necessarily good decisions. The success of Sprint is dependent on capital to expand and spectrum. Sprint is actually pretty good on spectrum right now so the most important criteria for Sprint is who can provide expansion capital.

How do you know nobody on the site is qualified to make commentary on mergers and acquisitions? I'm not saying anyone is or isn't, btw.

I do agree that it is all about what you get for the money that is offered regarding contracts.

Rather or not dish gets sprint, dish is going to get into the mobile ISP provider. Dish is on its way out of it current business. Most cable providers will be in the next 10 years. Cord cutters and next gen kids won't see cable like my parents do. I'm 35 and have never had cable. Even before the internet. If it didn't come via antenna I didn't watch it. The real cable companies have their broadband to fall back on, satellite providers have a total loss coming.
I have to agree I think sprint is better off with Softbank. But its up to the share holders, not us the consumers. I think Google and dish would make more sense, and add a 5th option to us. What a big shake up that could bring. Just my opinion.

Any chance that Intel's stance could be totally self serving? Just saying. Also I would wager that many who are anti-Dish are also the ones who trashed intel during the AMD Intel wars. Regardless of the fact that Intel clearly had superior products the AMD crowd shouted bloody murder from the roof tops, now they hate Dish. Dish has always had a better product than it's competitor, but, no matter lets hate the successful.

"Any chance that Intel's stance could be totally self serving?" It may not matter, but Intel has wired most of their campuses with Sprint repeaters and most employees now have sprint smartphones.

Let's see. One company buys a struggling wireless carrier, then later another, and turns them into the third largest mobile service provider in Japan and still growing. The other company buys an internationally-recognized video rental store, which declares bankruptcy less than 5 years later while its parent company struggles to keep itself afloat in a shrinking satellite TV market.

Who would you rather have in charge?

I always thought Softbank made more sense being that they are already in the mobile space.. But hey what do I know..

If it delays the network vision by a year I am leaving Sprint. They can go with higher money for the sale but at what cost? Their network is horrendous without network vision enhancements and they are already behind by 3-4 months on those enhancements.

What are the odds Softbank has financial interest in Intel?! I echo what many have said, keep American companies American.

Intel sees that Softbank will be rushing their network rollouts. That means more equipment purchased for their towers, hopefully from Intel seeing how Huawei is running into so much flak. This is totally self-serving, and has no bearing on what is best for Sprint shareholders. Most shareholders would say getting an extra 25% return on their investment makes this a no-brainer. If Sprint DOES reject the offer and Dish goes hostile with their offer, I would be willing to bet that a majority of shareholders would back the Dish bid.

I think the satellite tv distributors (ie those who provide the ground stations, put up or lease satellites and operate them) will have to change and adapt their business model.

Satellite mostly offers a very high bandwidth unidirectional poor latency link, ideal for TV and radio. Sure you can make it bidirectional but supporting multiple two-way links gets hard without consuming lots of spectrum.
Satellite can also push that bandwidth into places where it is hard to get good connectivity.

If you used satellite feeds as part of a CDN for pushing movies to the edge of your network you might have a real winner.