Dish and Google Discuss Possibility of Launching New Wireless Network

  • Since 2008, Dish Network has been buying up wireless spectrum and in the past year it has repeatedly said it is looking for a partner to build a wireless network.
  • The company recently met with Google to explore the possibility of a collaboration, but according to a person familiar with the matter, “the talks between Dish and Google aren’t advanced and could amount to nothing,” the Wall Street Journal reports.
  • “Most of the spectrum Dish has is designated for satellite use,” explains the article. “Dish has asked the Federal Communications Commission to allow it to use the spectrum for a solely ground-based cellphone network. The FCC denied Dish a needed waiver last March, opting for a yearlong deliberation process that has yet to reach completion.”
  • The fact that Dish is actively looking for partners while awaiting approval shows the company’s dedication to building out a wireless network as opposed to just selling the spectrum, which is worth several billion dollars.
  • Dish chairman Charlie Ergen says the company’s potential partners include companies, like Google, that would like to be in the business but currently don’t have any experience. He did note, however, that it would be easier for Dish to team up with a company that already has infrastructure.
  • “While Google doesn’t have expertise in wireless infrastructure and doesn’t control spectrum, the company has cash — more than $45 billion at the end of September — which could be used to help build a new network,” the article states.
  • “By gaining some control of wireless spectrum, Google could push to increase Web traffic speeds on mobile devices,” so people spend more time with Google’s services, increasing Google’s revenue. “Google also could ensure the availability of new services such as Google Wallet, a mobile payments system that currently is blocked by AT&T and Verizon.”

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