There have been rumors that Alphabet Inc Class A (NASDAQ:GOOGL) Subsidiary Google and DISH Network Corp (NASDAQ:DISH) have been working together towards creating a major carrier.
Sources revealed that the two companies have been in talks that are aimed at creating a new major carrier that will rival T-Mobile Us Inc (NASDAQ:TMUS), Verizon Communications Inc. (NYSE:VZ) and AT&T Inc. (NYSE:T). The sources also stated that Google and Dish would pursue the plan with communication assets purchased from T-Mobile.
The sources also noted that T-Mobile has been receiving a lot of pressure to assist in such an endeavor so that it can get clearance for its Sprint merger. The U.S carrier’s merger is worth $26 billion and is currently pending approval by the Department of Justice.
Sources claim that Alphabet director Alan Mulally has been holding talks with Dish executives to discuss the development. They however claim that the talks are still in their early stages and therefore not cast in stone, which means that they might drop the project any time.
Google rubbishes the mobile carrier claims
Google has already responded to the rumors terming them as false. Although Google has ambitions about the telecommunications industry, it insists that it is not in talks with Dish to create another mobile carrier.
These claims are simply false. Google is not having any conversations with Dish about creating a wireless network” stated a Google spokesman.
Although Google has denied the claims about its involvement with Dish to create a new carrier, it is easy to see why such rumors would see the light of day. Google Fi has been heavily reliant on Sprint and T-Mobile services and thus the idea that Google is interested in tapping into the full potential of Google Fi. Pursuing the creation of a national carrier would thus make sense for the company.
Google is also interested in making sure that last-mile connectivity is more affordable as opposed to its currently expensive nature. This is because last-mile connectivity has become increasingly reliant on last-mile service providers.