Media reporter from Bloomberg Alex Sherman
Dec 14, 2012|
Media reporter from Bloomberg Alex Sherman joins Barry to talk about Dish network being able to have their service on your cell phone.
Transcript - Not for consumer use. Robot overlords only. Will not be accurate.
-- everything that's going on we have. Not paid much attention to. Satellite television and there's a big story that broke on Tuesday for more than a decade Telecom mobile and hedge fund titans. Have wrangled. With regulators in a bid to wring billions of dollars out of thin air this week the government crown a winner the winner was -- television. And we're joined now by a Bloomberg news media reporter Alex Sherman to talk about the story Alex good morning welcome to the stroke. Your this is a big deal let's not get a lot of attention is because of everything else is breaking. But basically dish is going to be able to somehow use their satellite service to deliver cellphone service is that right. Yes that's idiot basically. In addition to account for a long process that almost two years now. To try to get the government to transitions. What was. Satellite spectrum for. Terrestrial wireless and basically in common language what that means -- -- up -- -- of frequencies that state owned company to -- frequencies than. And need to airwaves can now be used to transmit. Data and voice service just like any other wireless provider apps though it. -- they gambit by dish to get into the wireless business though they've been known for years and years of that. Satellite TV company -- people that have -- Network. No they're nervous and now -- gonna try to compete with AT&T and Verizon and now it's yet to be determined exactly how they're gonna do best -- that next step. Will they partner with the a device makers like Nokia or apple. In and and so you you know instead of like right now I have an apple phone. And I've got AT&T service are you saying that I'm going to be able to get a phone and then choose dish as my eight. Might my provider for. That is a possibility dished that not all of its own network you know AT&T and Verizon sprint they've spent billions and billions of dollars to build out wireless -- Networks but the first step for dish is too. Potentially partner with an existing wireless service. And then route that partnership it would be able offered -- wireless service of the possible candidate out there. Our our sprint. Or T-Mobile court in mobile is. Now going through a merger with MetroPCS. But that new entity could potentially pardon -- -- to offer -- this service. -- eighteenth he has the potential partner dish chairman and founder Charlie Ergen has come out and that. The one company it will not part with the ride -- because Verizon actually have a partnership. We have a large cable companies out there Comcast Time Warner Cable. To offer bundled wireless service that the cable companies of course are big competitor to -- Oregon is that you know what even if it may be Smart business. You know were not a -- company and partnering with Verizon would signal piece but about one company we ballpark. What about their relationship with Google deny regional last month or so that they have some kind of expanded relationship with Google. That is very he's via bit it actually sources that Google sort of waved off of that as a potential partnership. This of course does have a lit a relationship with Google as far as their spot or -- Google PB -- yet. Google TV like you can get apple PDA and use that in conjunction with DISH Network. But the Wall Street Journal ran a story indicating that -- -- talks with Google. Which is not a wireless company the potentially. Peeled out eight news service that would be jointly used service. From what we have heard that Bloomberg. I'm not exactly sure what the validity of that is but I would that at bat. Is -- long shot of the possibility of much more likely additional partner with an existing wireless company if in fact they wanna get into that bit the other -- analyst. Ponder they don't even wanna get -- wireless at all in this was just sort of a heat wave that. -- and create wealth instantly the spectrum that they -- that satellite spectrum dish spot out of bankruptcy for about three billion dollars. If they were to turn around and -- -- To an existing lot of people like an AT&T and never get into the business at all they may be able to make 67 billion dollars up that transaction. Simply by these stroke can be at -- he's staying. That spectrum that you were able the use. Previously now earlier enabled you to in this wireless way that would create a lot of value for -- even -- being never use the spectrum for wireless or. How does it impact DirecTV is -- DirecTV shut out of the steel. DirecTV has basically have a stamp all along that as we don't wanna get into wireless and that's why some of these analysts state that may be. This is just sort of deployed for dish to make money. Because the wild but that does the trick you want to get into AT&T and Verizon are the only two companies out there that earned their cost of capital. -- T-Mobile have tried for years and years to get into the business in the Arctic compete. Because you need to spend so much money up front to build a service where you have. At -- data connection what you have mobile calls that don't have interference issues or get dropped so DirecTV has basically have the stance -- we -- the United States. They you know what we don't really have any interest in the wireless business that this step toward we're just happy with. Offering our TV service and partnering with other companies if they want a bottle service where you can get mobile bottle -- with a cubic. And I see a dish stock doing pretty well on all this news it's at its 52 week -- darn near -- or so. Correct and and part of that is what I was saying earlier where. -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- That's good because it wasn't that long ago dish was on the ropes right -- they were a risk of the end they were losing the battle to DirecTV in terms of market share in that sat. You know is still far from it -- beat standpoint though the big question here is will -- actually use the wireless spectrum to offer mobile than they do. And it -- actually commit. Billions of dollars to some sort of joint partnership. You may see the stock go down because wireless that the Tikrit it was to get into that part of the product you are apt to do with the fact that some investors think. Well at least their wealth creation here that they don't use efficient -- is that and does spent a lot of money wireless. Investors will probably -- data and negative. Because that means that it won't buy back as many shares -- -- proper big dividend. And you know that that money won't return to shareholders that will be invested. In what has proven to be a difficult bit. Yes it has now has all right thank you very much out I appreciate your time. Alex Sherman Bloomberg news media reporter joining us today on the financial exchange in the next segment. June night and I are going to talk about breast implants. Yeah. I it's an article and your story you you gave me the story I did yeah and its items and are now but now I I was fascinated by the breast implants -- -- I -- to cover and she conceded and that's our next topic breast implants will be talked about next on the financial.