Google is in talks to help create a fourth US wireless operator, even as Sprint and T-Mobile struggle to get their controversial merger removed by federal and state governments, The Post has learned.
Alan Mulally – a former chief executive at Ford Motor and a current alphabet director – has recently been in discussions with the satellite television giant Dish Network about a plan to create a fourth American telecom player, sources say.
The idea is for the alphabet-owned Google and Dish to launch a new wireless giant using assets acquired from T-Mobile, which is now under pressure from the Ministry of Justice to help such a project to get clearance for its $ 26 billion merger with Sprint, according to sources close to situation.
"There is no doubt they are talking," said one source of Mulally and Dish execs.
"These claims are simply fake. Google has no conversations with Dish about creating a wireless network, said a Google spokesman, and went down to comment on Mulally talking to the dish.
Sources added that the conversations is in flux and can still fall apart, and that it is not clear whether T-Mobile and Dish will immediately announce an agreement with Google if an agreement is reached.
T-Mobile parent Deutsche Telekom, who faces that Dish appears to be the only viable buyer for assets, being asked to sell, also appears to be aware of Dish's conversations with Google and has tried to prevent the bond, insiders said.
In particular, Deutsche Telekom has recently insisted on that it will only sell assets to the bowl if it promised not to sell more than one five percent in itself to a third party, according to the sources.
"If you are DT, you need to consider whether Google is worth it," Walter Piecyk, and anal Bite at BTIG 1
Similarly, despite concerns in Washington about Silicon Valley's giants becoming larger, feds are "not very concerned" about the prospect of Google playing a role in forming a large wireless network, according to a source of direct knowledge of the situation, due to its current discount range. Google's Fi service, which mainly leases its wireless spectrum from T-Mobile, Sprint, and US Cellular, charges $ 20 per month for unlimited calls and subtitles, plus $ 10 per month for each gigabyte of data used.
According to BTIG's Piecyk, Google is also interested in the Dish agreement to ensure that the fast-growing cloud computing business can compete with the Amazon and Microsoft wireless devices, as wireless devices are becoming increasingly ubiquitous.
"The cloud becomes more dependent on the last mile providers, Sa Piecyk." It's in Google's interest to make sure the last mile provider is cheap. "
Dish's billionaire Charlie Ergen has spent $ 20 billion on to unite a trophy of wireless spectrum that could release Google Fi from its confidence in T-Mobile and Sprint.In the purchase of key equipment and infrastructure from T-Mobile, insiders consider Dish and Google to deploy a new, fully independent wireless network in about three years However, Ergen's deal with T-Mobile is expected to take at least two to three weeks to complete, according to one source, "about halfway there."
And even a deal between Dish, Google, T-Mobile Mobile and the Ministry of Justice come together, T-Mobile still has to win in court against 14 states that sue to block their Sprint agreement .The states are concerned that less wireless competition will lead to rising prices. October
Dish refused to comment, while DOJ and T-Mobile did not respond to messages.