In the latest of an unbroken
chain of disinformation from the Wall
Street Journal, columnist Holman W. Jenkins, Jr. today implies that a Dish
Network acquisition of Sprint offers more proof that there’s nothing but
sunshine in the broadband and wireless marketplace. According to Mr. Jenkins, anyone having a “woe
is us refrain” ignores the robustness of facilities-based competition and how
the network neutrality issue is a solution seeking a problem.
Not
so fast Mr. Jenkins. There is another
meme to yours that your publisher won’t allow and you cannot fathom: Dish
Network, like AT&T, Comcast and all actual or prospective acquiring companies
have commercial objectives that mostly involve enhancing shareholder value, goosing
stock options, locking up spectrum and buying out competitors than promoting
competition or ensuring fairness and transparency. There is nothing wrong, noble or charitable
about Mr. Ergen’s gambit: just like Comcast, he sees the need to find a hedge
and alternative to his core satellite services.
Just in case consumers lose their appetite for a forced bundle of
content tiers, delivered via Mr. Ergen’s satellites or Comcast’s cables,
incumbents like Dish need to identify new profit centers. For both Comcast it involved bolstering
control over content, not just its distribution. For Dish it requires a return to earth-based
content distribution technologies in addition to—hopefully not in lieu of—the satellite
option.
Dish
sees Sprint primarily as a source of terrestrial spectrum, perhaps for the same
content it now distributes via satellite.
There is nothing in a Dish acquisition that bolsters the “reality” of
broadband competition, or refutes concerns about the incentive and ability of
network operators to favor affiliates.
Dish may revitalize Sprint, but the deal does not create new competitors,
new competition, or more spectrum.
Mr.
Jenkins exuberantly sees a rosy future when competitors buy each other out and
collaborate in ways that foreclose even the prospect for facilities-based competition.