We knew when we first started hearing about Google and Dish Network being in talks about possibly creating a wireless operator, which we have since called Google Wireless, that other carriers weren’t going to like it. And of course they wouldn’t. Google has shown in the last year, that they are willing to sell devices at cost and make their money off of content. So they would probably do it the same way with their wireless plans. Sell them at the cost to keep their customers connected, and make all the money from Google Play.
Now, we are getting reports that Sprint is in talks with Dish Network for a partnership to allow Dish Network to offer mobile-phone service over Sprint’s network. Right now, Sprint can barely handle the load on their network they have. How are they going to have Dish Network offering service on their network in its current state? Sprint is going to need to get LTE out and covering most of the US before they can do this partnership with Dish Network successfully. But that’s just my thoughts on it.
The potential deal between the two companies would allow Sprint access to Dish’s spectrum which is currently unused. The companies would then share revenue from customers who sign up for a Dish wireless service, or Dish may pay Sprint a fee to use the network. According to people familiar with the matter. This deal would allow Dish to enter the mobile market, and offer its 14 million satellite-TV customers wireless service. Dish has also said they won’t make a decision until a regulatory ruling on its airwaves is made, which is supposed to come as next week.
If the deal goes through, this could help Sprint even more to compete with the likes of Verizon and AT&T. Currently Softbank (a Japanese wireless operator) has closed a deal with Sprint to own 70% of the carrier. Which is giving Sprint $8 billion in cash to spend on making deals and upgrading its network. Sprint has also recently bought some Midwest spectrum from US Cellular, which cost Sprint about $480 million.
While we heard that Google Wireless did fall through earlier this week, this could have been Sprint trying to prevent Google Wireless from becoming a reality. It could also be a way for Sprint to work on getting their network up to par with the competition sooner. Right now Sprint’s data network is extremely over populated. 3G speeds are hitting at max 1.5mbps, usually are a lot lower. So Sprint could use the extra cash to overhaul their 3G network and get 4G LTE up and running sooner.
So we know Dish is desperately trying to get into the mobile industry. We’ve heard of them being in talks with MetroPCS, Sprint, and Google. But who’s going to get to use the spectrum that Dish has acquired? Let us know what you think in the comments below.
Source: Bloomberg