Tips to Dish Network to convince Sprint over SoftBank

Baburajan K’s Blog: I noticed that Dish Network, which is working to protect the security of every American in the U.S., is really keen to buy Sprint.

Dish does not want to dish out extra funds to convince the shareholders of Sprint Nextel. At the same time, it does not want Japanese SoftBank to buy an American telecom operator in the U.S. soil.

Dish is sharing several concerns. It feels SoftBank works with Chinese telecom equipment makers and hence it should not be allowed to buy Sprint. These kinds of arguments are ridiculous.

Sitting in Delhi, India, I strongly feel that America follows an open market economy and Japan, India and China are top priorities for their economy. Comments connecting security issues during a tough competition with a Japanese giant for buying telecom assets may not be welcomed by several professionals.

If the U.S. federal government was keen to stop Huawei or ZTE from doing business in America, they would have done it already. President Obama and team are keen to protect the safety of Americans. They are powerful enough to take any measures.

Huawei and ZTE are facing similar security related concerns in India as well, where I am based. But the government has not taken any official step to check them. This means, there are doubts or concerns. But there are no proofs.

Despite recommendations against Chinese telecom vendors by an American panel, nothing changed for Huawei and ZTE. Can Dish Network succeed in convincing Sprint shareholders over Sprint’s sourcing deal with Huawei or investment in a Chinese internet company? I feel these are Dish Networks’ weak arguments.

Dish’s concerns are in line with the issues shared by New York Senator Charles Schumer.

SoftBank wants buy 70 percent of Sprint Nextel. The New York Senator warns that it could expose the United States to Chinese cyber attacks. The senator is trying to building a weak case.

“I have real concerns that this deal, if approved, could make American industry and government agencies far more susceptible to cyber attacks from China and the People’s Liberation Army,” Senator Charles Schumer of New York said in a statement.

Tip to Dish Network

Dish Network should increase the offer substantially to convince the Sprint shareholders and management. Let the shareholders benefit from this take over. The cash rich Softbank can also increase their offer. The best financial offer will win and not the security issues. Let security issues be tackled by the powerful government.

SoftBank is supported by the strong heritage of Japan. Japan likes harmony in their corporate dealings. Their new generation leaders do not fight. Their corporates work very closely with several countries. They are not known for illegal dealings.

I have one more suggestion. Will Dish disclose the number of Chinese people working with the company; size of Chinese equipments used in Dish technologies; Chinese contribution to the success of Dish in the U.S; etc.

We try to hate Chinese. But Chinese contribution is a reality. We may buy a Nokia or Apple phone, saying they are from strong European companies or American firms. But the reality is that these devices are landing in our land from a Chinese factory.

Baburajan K
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