Monday, November 19, 2012

Dish Wants A Wireless Business And So Does Google

Dish Network is the second largest cable satellite provider in the US.  They also have clear intentions to be a leader in the broader wireless world. Having picked up wireless spectrum for the past few years, Dish is trying to figure out how to get the FCC approval to utilize it for two way mobile communication.  And while Dish has tried to find another mobile partner to gain a foothold, nothing has taken root.

At the same time, Google has been pushing to enter the broadband space as well.  Their fiber build in Kansas City has been one way to control a broadband pipeline but capital to build a national fiber frame may be too big, even for Google.  "According to 'people familiar with the discussions,' Google has talked with Dish Network about the possibility of creating a new wireless service."  For Google, the collaboration could mean greater connection between content and distribution for all of its mobile devices; for Dish, a possible larger audience to sell cable product and interactivity.  And the challenge for both, sharing and not owning outright.

"Don’t get too excited, though. Dish still doesn’t have regulatory approval to build a wireless network with its spectrum, and it doesn’t have the necessary infrastructure, either. If Google and Dish formed an alliance, they’d either have to build their network from scratch–a massive investment, no doubt–or partner with another company that had its own infrastructure already."  Still the size of this collaboration might give them the leverage and credibility that they need to move a project of this size forward.  Could they attract enough customers away from their current wireless provider; well as costs rise, customers are always attracted to lower cost alternatives.  And this new potential entrant could just disrupt the current model.

No comments:

Post a Comment