Who will win the sprint to Sprint Nextel Corporation (NYSE:S)?

Posted by admin June 5, 2013 0 Comment 1713 views

The wireless wars are on. Softbank Softbank Corp (OTCMKTS:SFTBF), the Japanese mobile operator wants to buy-out Sprint Nextel Corporation (NYSE:S). DISH Network Corp (NASDAQ:DISH) is in the bidding fray as well. It seems like DISH will leave no stone unturned to acquire what it set out to. The company is now saying that permitting a Japanese company into the U.S wireless space is a national security threat. Not one to soft-play anything, Softbank has told its partners to back-off from supporting the DISH bid.

The former had another trick up its sleeve. It struck an agreement with regulatory bodies in the U.S. The accord overstepped the security threats that DISH was alleging. As a consequence of the fall-out with the originally-planned financers, DISH has gone ahead and contacted another set of banks for financing its bid.

Why the sudden interest?

But why exactly is DISH showing so much interest in the wireless space? If you turn around and glance at DirecTV you would realize that this stronger satellite competitor wants to buy either a potion or all of Hulu, the online video specialist. What this means is that everyone is looking for options for the expensive satellite medium and DISH wants to head the wireless way.

Is the security argument valid?

Though Sprint Nextel Corporation (NYSE:S)’s allegation about a security threat from Softbank may be a little way off-mark, it may be something to think about. When it comes to mobile radio applications, security is definitely a critical issue. This is the case for users as well as for service providers. Though this is the case with all types of communications systems, mobile applications are especially vulnerable and have specific requirements. Wireless networks share several characteristics with conventional wireline networks. They to have data networks and public switch telephone. What this indicates is that the concerns that surround security of wireline networks are also relevant when it comes to the wireless medium.

Is there a solution?

There are certain factors that would have to be taken into consideration when it comes to integrating security features with wireless communication. Restrictions such as low bandwidth, a smaller packet-size, limited storage resources and processing as well as time constraints must be factored into security integration. Of course, technology is, at the end of the day, technology and maybe what DISH says needs to be given another hearing.

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