Is Google in the Race for the Fourth National Wireless Carrier?
With advanced stock market trading software offered by online broker dealers, the public has really turned to stock trading. But finding out the next big opportunity to invest in can still be challenging. Right now the 5G arena is the hotbed for attention since there is a major deal in the works while rumors and news keep flying around.
Is Alphabet ($GOOG, $GOOGL) making plans to become the United States’ 4th national wireless carrier? Sprint ($S) and T-Mobile ($TMUS) continue with their merger plans, one that will rock the industry and be detrimental to any competition, particularly from a 4th carrier. But it’s precisely to avoid such domination that the Department of Justice (DoJ) is imposing many divestitures including the requirement that both T-Mobile and Sprint should divest a significant portion of their spectrum assets, so that a fourth national carrier could be created.
The Coveted 4th Carrier
Already, DISH Network ($DISH) seems to be the most likely candidate for the 4th carrier, since the satellite TV company is a top bidder. Motley Fool analyst Evan Niu points out that DISH already hoards significant wireless spectrum. But now, Google parent Alphabet seems to have entered the arena though the company is denying it. Over the weekend of July 6 & 7, news or rumors kept spreading that Google could be looking at helping create the 4th national carrier.
Google and DISH
While the rumors may be doing the rounds, actual news reports did emerge, with Niu referring to a New York Post article that reported Google in talks with DISH for collaborating to create a wireless network, something which a Google spokesperson has categorically denied. But then, companies do deny reports predicting their moves. They usually report only after deals are finalized. So Niu reckons these denials can’t be taken at face value. The New York Post report specifies that Alan Mulally, director of Alphabet was heading the negotiations.
From 2015, Google does have Google Fi, its MVNO (mobile virtual network operator) that makes use of the networks of Sprint and T-Mobile along with other networks. The T-Mobile and Sprint merger had caused some worries to regulators, of how it could potentially hamper the MVNO market and the wholesale pricing.
Why Google Would Be Observing the T-Mobile - Sprint Deal
It doesn’t exactly take rocket science to figure out that Google would be interested in the outcome of the T-Mobile – Sprint deal, because that could possibly force it to adopt a higher wholesale pricing model for the future. If wholesale prices rose, Google Fi could not continue with its aggressive pricing. T-Mobile has already declared that its deal with Sprint will be extremely profitable. If Google partners with DISH, that could provide it with more MVNO options. Its Cloud platform could also end up becoming more flexible.
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