It's a distraction for Sprint. I know on the surface everyone is giving the Dish offer the consideration it warrants, but I don't believe anyone is seriously considering the offer.
Sprint's network speeds aren't terrible because of a lack of spectrum. Sprint has the spectrum through what it owns and through it's clearwire partnership. Once iDEN gets taken down, Sprint has almost 40mhz of spectrum nationwide (I think it's like 18mhz up and down) to roll out LTE. To put that in to perspective, Verizon only has 20mhz of spectrum nationwide. That's why they're adding AWS coverage. That will give them an additonal 20mhz nationwide. That puts them ON PAR with Sprint's current 800mhz holdings. Additionally, Clearwire is building out a 40mhz LTE network and they have an extra 80mhz of spectrum they don't know what to do with in most markets and Sprint owns 50% of Clearwire right now.
Meanwhile, Dish has 45mhz of bandwidth that they've already been denied once in trying to build a LTE network out on (though they'll probably get to eventually). Dish doesn't bring anything to the table for Sprint. Softbank has deep pockets, and that's what Sprint needs. They need to get iDEN shut down and all of it's users on PCS. they need to build out a 15x15 LTE network on 800mhz and then carrier aggregate it to Clearwire's 20x20.
I still expect Dish to be a major player at some point, but it won't be this year. Softbank will just match Dish's offer if Sprint shareholders are wavering. Honestly, I'm starting to think that, between Dish trying to interfere with Sprint's purchase of Clearwire and Softbank's purchase of Sprint, that maybe Dan Hesse stepped on and scuffed Charlie Ergen's shoes at a party or something and refused to replace them.