Dish is up 9.1% in afternoon trading partly based on a theory that the satellite company is in AT&T’s sights now that it has abandoned its effort to merge with T-Mobile. Stifel Nicolaus’ Christopher King is among the analysts who say that it makes sense: AT&T craves spectrum, but it has few places to get it. The Justice Department and FCC nixed the idea of a merger with another wireless phone company. Cable operators also are out after their recent agreement to sell the spectrum they control to Verizon Wireless. That would seem to leave  Dish, even though it was one of the loudest opponents of AT&T’s deal with T-Mobile. Dish founder Charlie Ergen has been amassing spectrum — including some in the 700 megahertz band, which is where AT&T is building its 4G network — to help create his own national broadband and video-streaming service. The satellite company has said that it would like to find a partner to  help pay for his ambitious plan, and identified T-Mobile as a possibility. And even though Ergen says Verizon and AT&T need another competitor, he didn’t rule out a deal with AT&T when asked last month about the possibility. “If the merger is not allowed then it could be” an option, he said in a conference call with analysts.

But don’t bet the mortgage on a quick deal between AT&T and Dish. Dish is still waiting for the FCC to approve its spectrum deals, and won’t want to raise new questions about its plans. AT&T also is closely allied with DirecTV: Last month, the companies signed a three-year extension to their agreement that enables AT&T to sell a co-branded version of the satellite service to voice and broadband customers in 22 states. DirecTV also offers its customers AT&T broadband.

 

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