Wednesday, January 9, 2013

Dish Network Wants To Be Your Broadband Provider

Dish Network has  a plan of action.  First, get FCC approval to use its wireless spectrum and second grow the business.  With that in mind, Dish has declared its intentions to move quickly by counter bidding on Clearwire to wrestle control from Sprint.  "Under the proposed deal, Dish Network would buy about 24% of Clearwire's spectrum assets for $2.2 billion, and Clearwire would build and manage a wireless network for Dish. Dish would also provide up to $800 million in additional financing to the struggling Clearwire."  So while counter-offering Sprint, a successful bid would also mean that Sprint and Dish would become partners in the ownership of the wireless entity.

What is Sprint going to do?  Given that they too are being purchased by Softbank.  And is this the best move for Dish?  Given some of the issues facing Clearwire, "Clearwire's frequencies are difficult to use", should Dish look to partner more closely with another wireless provider like Sprint itself or Nextel.

What Dish does know is that two way communication is key.  Google is building a wired market for broadband such as in Kansas City, but for Dish, the strategy is a wireless infrastructure to compete.  And ultimately for the consumer, more competition for wireless and broadband access is good news in keeping prices competitive. 

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