Lowell McAdam (pictured), CEO of Verizon Communications, dismissed speculation the operator is planning to acquire satellite TV company Dish Network, while expressing confidence in its own upcoming second quarter results.
Wall Street analysts speculated that Verizon might be in the market to buy Dish Network, which holds airwaves in which it could be interested.
Speaking to CNBC, McAdam said Dish “has got some great spectrum” and that “anything around spectrum is always of interest to us”, but made it clear that Verizon acquiring Dish is not a logical move.
“I haven’t seen a scenario yet that owning a satellite company makes sense to us. Not being critical of any other deal out there but right now we could do some interesting things but buying the whole company doesn’t make sense to us, at least as we sit here today,” he said (rival AT&T has tabled a $48.5 billion bid for satellite operator DirecTV).
Verizon has already spent $130 billion this year to buy Vodafone’s stake in Verizon Wireless.
Reuters reported yesterday that Dish Network plans to take part in a US spectrum auction due to take place in 2015, in which licences for 600MHz airwaves will be on offer. The company is also expected to bid on AWS-3 spectrum in November.
In response to a UBS report stating that AT&T had the lowest churn rate and T-Mobile the largest subscriber growth in the US in the second quarter, McAdam was bullish.
“We think this is going to be a great quarter for us. We added over 1.4 million subscribers postpaid net adds, we had record tablet growth, we had very strong smartphone growth, we had very good churn and we delivered margins that were consistent with what we’ve done over the last several quarters.”
JP Morgan said on Wednesday it expects Verizon Wireless to add 850,000 subscribers during the second quarter, while other Wall Street estimates put the figure at 650,000.
Verizon’s official Q2 results announcement is on 22 July.
McAdam also reaffirmed Verizon’s view on the issue of net neutrality in the interview: “We’ve taken a very strong position on net neutrality. We will allow customers to connect to any lawful content [and] we won’t manipulate that traffic in any way that disadvantages our customers or our competitors.”