DISH Network (DISH) 9 Nov 172017 Q3 Earnings call transcript

Company Profile

Participants

Jason Kiser	DISH Network Corp.
Timothy A. Messner	DISH Network Corp.
Steven E. Swain	DISH Network Corp.
Charles William Ergen	DISH Network Corp.
W. Erik Carlson	DISH Network Corp.
Thomas A. Cullen	DISH Network Corp.
Philip A. Cusick	JPMorgan Securities LLC
Walter Piecyk	BTIG LLC
James Ratcliffe	Evercore Group LLC
John C. Hodulik	UBS Securities LLC
Brett Feldman	Goldman Sachs & Co. LLC
Marci L. Ryvicker	Wells Fargo Securities LLC
Thomas William Eagan	Telsey Advisory Group
Craig Eder Moffett	MoffettNathanson LLC
Jason Boisvert Bazinet	Citigroup Global Markets, Inc.
Gerry Smith	Bloomberg LP

Call transcript

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Operator

Good day, and welcome to the DISH Network Corporation Quarter Three 2017 Earnings Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Jason Kiser, Treasurer. Please go ahead, sir.

Jason Kiser

Thank you. us. joining for thanks Well, CFO; This is Chairman Development; Charlie our General Swain, today Carlson, Tim Controller; Messner, our Kiser, CEO; Tom joined new our Steve and Network; Corporate of by Orban, Cullen, our President and Ergen, Counsel. DISH Jason Paul EVP Erik of

Q&A, So Tim take for to our we're we before up Safe do that. going open Harbor and disclosures

Timothy A. Messner

A good few everyone, joining reminders we and thanks morning, Jason, us. Thanks, as begin. for

or their that media representatives participants reports. not First, in we firms identify ask your

We different other that also from actual uncertainties taping and not known forward-looking cause or risks, audio call make allow any respect constitute that. future and involve and are unknown you don't results and during by factors ask historical All statements statements. from such expressed that we forward-looking fact results be could materially which implied that of historical our statements that results to statements, this

list All to For call understood a please to of as appear. during we wherever being statements any should they we cautionary our the be make applicable refer make front the statements that forward-looking of those factors, XX-Q.

consider in and place statements, it over our reliance our risks should Swain, not CFO. updating. forward-looking the no which on said, reports any responsibility assume I'll turn You undue we for carefully that described With to Steve

Steven E. Swain

our on quick of subscribers. couple comments A

Virgin Islands, in Hurricane extraordinary Rico resulted caused the damage which Maria September, U.S. loss Puerto During and of in widespread infrastructure. power and

in XX. effort XX ensure be our This paused included all approximately receive in those have areas loss services, our devastation service the not the approximately Combining removal were Islands of in and in Pay-TV XXX,XXX the to Pay-TV third Virgin Irma. quarter. hurricanes onetime customers an Rico subscribers grew Harvey charged subscriber losses XX additions with including or XXX,XXX setting Accordingly, trends in Hurricane and Internet subscribers efforts Please recovery Rico of Virgin activations, unable metrics the states, such represents and XXXXX removed to count. quarter reflect we to September adjustment service new growth the of churn of registration disaster and we Puerto note, at satellite subscriber Islands. from and of we our in those would customers. In net adjusted sites. approximately for Pay-TV XX,XXX net proactively gross in states, Pay-TV the declined on power, of business all the substantially for net the and additions underlying customers week as Given XXX,XXX. Hurricane the subscribers the were order have Puerto other the ending the This up subscribers third our In impacts for as the In rate hospitals Pay-TV focused not following Maria, impact Pay-TV Maria. been FEMA subscribers

goal Over Islands. economically subscribers Rico the our is of Virgin to majority the year, the and it next Puerto reconnect our in to

active will incur returning subscriber expect However, to In of customers. or may we to status. be expenses many service predict our installation we to connection able how cannot light return customers situation, our reactivating in the with receive when certain

the customers activations any which new subscriber will recorded period as Pay-TV be returning return. reason, that gross for they For in

Maria, Q&A. call additional operating open have or position while to on our lost a result up we to expenses not effect as revenue and With that material Lastly, expect them to we Operator? Hurricane the expect a I do have results. of will financial

Operator

question take We'll our you. Thank Philip Cusick JPMorgan. with from first

Philip A. Cusick

partnerships player a market. going your spectrum in around could to that long what ability your for Hey, looks and guys. about Thanks. the Charlie term strategy change space I guess talk does drive you How like your forward? first wireless

Charles William Ergen

more other much that than Well, on I too wireless of the think really table a is vision future more us. things network perhaps people. of and it's change few just our connecting in microprocessors addition about and it phones more the network connectivity to is but the But options there's it and and not tablets, a it's of going about to for connecting doesn't anything people

And obviously going connected. be to of billions hundreds so there's of things

the probably in based need almost and the that in that have So a industry things shifts that within technology, need this paradigm massive and the a those on we future. every because connectivity to – on disruption people everything paradigm the see because out invested there there's shift in connect are in XG and fact of – call companies particularly there almost in lot

having an of exactly being instead – XXXXs a – what opportunity to like an be starting like airline engines know a airline a that but is, to that that don't be you does upgraded of and bit have an to with would back the know the network airlines XXXXs have prop jet airline in instead starting like I with engines. an bunch build jet with be it's of it start in you We all analogy slowly – again planes the you it'd an be right and

So satellites had we the And Technology that – was the to market consumers. law in Congress was for to good to had a but laboratory television the is and actually that programmers had not sell have MPEG – cable enough about some us actually we hit very big just build all technology worked compression. satellite were fortunate passed there. the advantages timing. digital worked when to and X gotten

right So timing. that – that we hit the at

networks always for get that hit of the connectivity – people it greater business as as For need good paper. hour becomes changing wireless a to and we voice the networks overnight on tires do companies. voice, miles connectivity that's they can't difficult and timing the blank they're today their Whereas networks. going have highway for in but greater sheet for they and over there really a we get the we time, XXX haven't upgrade And from down XG to at car about the and do. They'll right design the comes think an but to

a few we think competitive – more what we'd we've very a and matter we always So, But thought today. no we market. be options in have

Philip A. Cusick

Charlie. Thanks,

Operator

Your from BTIG. Piecyk Walter next question with

Walter Piecyk

Thanks. or starting the your dialogue designated Charlie, with the have you dialogue – court on came that names started that order with a any following FCC – out?

Charles William Ergen

to We available known FCC and whenever we're have they're the made ready talk that engage. to to ready

but I – So will know or be I a whether don't private those – a public know – how in don't forum. that forum again

saw an think, which fact, I cure if up opportunity by like the of opportunity previous to issue, opportunity an we're historically, in is fair kind there's I saw obviously, were to decide. – So was to always to cure a And FCC I there's encouraged – that on going think that disappointed it, that to But the be the that's court that been denied we always administration. a been basis. control we that there were it

Walter Piecyk

AT&T-Time I trying deposition if for proper you past back in the DOJ of you Thanks. suit? oppose – Has you or don't the I to know terminology preparation I transaction. Warner Also come at know week, you out guess, the suit get can a us but the the guys and what is, tell to in

Charles William Ergen

that. comment going not we're on to but try, Nice

Walter Piecyk

individual Sling, just the there business give worse hurricane ops you the out excluding I And loss the But quarter Okay. than lastly, better subscriber don't numbers. impact? guess, I slice, business, know Pay-TV last the traditional, then was excluding XXX,XXX-plus or the sat

Charles William Ergen

jump And Erik this it want in but – to may this, the general, in way. on say I'd

did we thing shouldn't the came – saw when We economically. each we big free – Street, first took we – as I programming, things that I think we to probably weren't economical we us. we deals And customer customers in that we – did back CEO, we I didn't things that that not things probably probably long-term gave probably weren't an effort for disappoint have. on that Wall treat was

curve bit on company, So think little really people – probably we I the of thing a And other the I six first got the a focused think back, months as – I we ahead when before came maybe focused – on. got that's we did. first

and continue rates, the so good. because have they Erik still really team advertising really, and got But TV raise stabilized. declining much part his while got they really and have programmers in of too has having said the issues still still revenue. ratings And content's way to have Linear problems, that,

So to starting it's rational – people with it degree, long-term some rational fixable making decisions. more

were a a we for shrinking also able to even lot bit business of sense rural is have America just our – America. we've rural we designed continues It so and industry. a our a we our to industry. America, have still And And we we're shrinking a it's programming stabilize be also able designed bit to the floor rural distribution a have little in that a for core part of strong And of though – better, company. been

think And years you it's hard we've foundation of parts Erik, firmer other the not linear – we some video business, I'm a say growing saying the that so I our we're business, ago. business, not on And a or licks. I not want business only than of taken and think but were couple so... to to do –

W. Erik Carlson

versus the having on more add having how you're to or a taken right-size Yeah. disciplined place And customers, we've side, discipline customers. bit too rural And in about just go I've folks reinvest this a credits kind we Charlie about other satellite much I save. just to on approach about it's more of don't obviously also there, but But, and a think or the TV. more to obviously, programs acquiring Charlie, which to a past. disciplined giving customers out much there's in retention obviously talked retaining willing little strategy really a than strategy, either help pointed in

satellite customer. TV to three not Flex That choice, the mean, discipline, take And on but a you, But our it's I not competition OTT obviously, of it's growing, which money. side, whether gives occurs and it's right-size. we it's locals Whether win. an a combination that customers There's to that a in obviously ability And the helps and easy. going it's then Pack, and they guide price for a of and help broadcast customers care really bit Flex And with so have us also that linear tail execute. of longer so... out of improved, have the our operational of focus have definitely things with those of not kind a lot have only save TV. I to, search them is So integration the customers business. think, (XX:XX) value on we and and off-air all off-air satellite subsidizing integrate And there, the to drop allow already And we're all our programmer stuff. kind television obviously to and Pack their can and antenna get

Walter Piecyk

Got you. it. Thank

Operator

next take Jayant from Evercore. We'll Vijay with our question

James Ratcliffe

Morning, it's for two Ratcliffe and James Vijay, I could. if

thought dynamic? about DISH – through First Pay-TV And the wireless wireless base of versus you side. seeing any through seeing customer the existing relative front. on on capacity they seeing that the from like coming appeal of about Verizon seeing Sling you're seen AT&T in you've Now hard only customers coming were business, platform? a mentioned Thanks. the the outside Wondering you're you if bulk the changes you from? at pushing certainly like can similar us seems of Charlie, very about I change the densification I on spectrum or talk where secondly, all you're can cost the mean from any color DTV any virtual Are think from of vast their are adding the coming Because in more it densification? players U-verse. where XX% or DTV trend, give

Charles William Ergen

it. to Voice-over-IP, macro because a GSM network the kind it – as of they Yeah, as to wireless than had and where CDMA. There's spectrum it's simple versus Verizon looking spectrum situation was – little opposed I'll take maybe or requires as a densification. side denser at not of bit in densify

there already requires their millimeter network. really, So was – really, really that dense of but wave acquisitions, because

bit normal what to they're more maybe a than there's in be a So doing network. strategy would

wouldn't costly I versus rule, general think less – as OpEx, be – be as to a for and easy it's there's – it's going – to long-term going I be to general I densification. think CapEx, spectrum have is rule, densify key the less and think a cost going I not to

is would say if even bullet gives can that long-term has gun true, limits. you spectrum densify. that you another second thing always the I that problem in The densification additional wasn't The that

you've And spectrum, of spectrum you connectivity so reached don't if in, and and going in limit densification. the you like any the you – core densify don't have have still crazy, future, enough you needs have

when but you're nearly cost X, physics not cost today, law all and not cell get it cell, small the it's first at – you small not to the it's so, really And effective of XXx. the XXth –

it's up are so, with as And of then processing those I and – a that financial former – lot costs interference. – to financial reducing a analyst, think signal you end

So if us with always if the of worse a in case would you as deep at you're a look even I bet capacity. you can future, go design. everything off better additional believe, hit costs, out – spectrum. are run you say you whereas wrong, And I'm on in you with densification, you bunch total is, of the definitely if densify trouble strategically, that generalization, And system I you

like you've and starting role that hear to At densification hear So more starting about things have need – and a and about Those to also it's got some things a play degree, a cores bit get in networks you because that more you're NFV and, And virtualized to bit virtualized to that. and the to storage. a more little for to bit that. you're technology, little edge, densification. involved

a method madness the is there of to densification. So

to it total And – story And talk the a system. your it's and on part you you so Erik? to everything. And to as up want always the don't of your – want Sling, does to do anybody part is separate tell look is go some story take wheat Sling, good good. to to some not from company, chaff. you guys everybody you've you Street, when Wall Because your So of but got at look,

W. Erik Carlson

Yeah.

today, strengths I distribution our think the that That's where kind geographic traditionally to the we've DBS when service of DBS alluded – America. that's service, grown of TV has cannibalizing our from areas, right? on focused perspective, it look, our to where and comes focus in Sling that's rural I idea up is. a where traditionally continues been different kind are, Charlie

need And so, for generally, Sling broadband. work, obviously you to

at a an points urban, type And suburban that towards profile. you so more bit of

cannibalization And just not – we're so, DBS not seeing the service on strategy, Sling on ton a we're targeting our based to the service. seeing

Charles William Ergen

the Everybody lost I I in everybody else And vision made until difficult our choice an do that of people to of would OTT, go Yeah. time generation of kind a idea not was at of just a industry, an Disney we, we'll And like as else Pay-TV. was kind but felt that courageous OTT add it. entire OTT. – it the to unless liked say, did of

our So get a marketplace It we've until cable much and of as there changing and OTT cable, was overlap to wasn't initially. really there it's an at just goal not back whether a coming Pay-TV. is slightly all is which things lot That bit DIRECTV lost like format. exactly, DISH trend cable more to the a between a almost it's overlap replacement was leadership so get generation Sling that NOW really for Disney came – in. in that But go in is –

and YouTube and and then like – others. Hulu people So

a and change OTT it – And That thing is mainstream. So is may more with changing. thing, we'll now be bad going so a or but good that a it, still we're is – obviously. now

James Ratcliffe

Thank Great. you.

Operator

from next with John Your Hodulik question UBS.

John C. Hodulik

saying their a Could profile. rate that the to Okay, have Hulu, at night about overall gotten Sling? subs and great. do live decline sort a It in what affected where growth, the bundle live then, you the trying live getting talked last sort all the Has TV you DIRECTV Fox aggressive do evolution streaming was to Pay-TV you guys competition to increase back of streaming wireless about of seems of that that TV expect or of more NOW in bit Thanks. similar seeing of And in of number think to Thanks. sort YouTube, like the point little market, growth you Charlie, that going the sort returns talk forward? you're market?

Charles William Ergen

of of Having exactly a I in that, in same everybody's dozen you OTT going approaching start content there. mean, putting some themselves, there Well, down Hulu, the course to when not you're to boil the – of competition the it's selling amount a providers amount said – correct. owned tremendous There space. is probably and then and certainly competition there there's tremendous companies, by is Google a still thing.

packages so of that as happen And have And fragmented. Internet. not on market's a the more what's get only move a to is that's button but to with click the going will consumers have can will choices. they And going between result, they choices, a some

everybody sports OTT everybody traditional the there chance buy That's So to NOW, was in that in going to a to buy certainly XX% linear not going have providers where case case I buy the bundle. not think Not you're be tricky and content goes. OTT that's a whereas probably not programming. to for to has has bundle, because sports

it's ad I market content a unicast gets going think bit segmented. little There to can consumers. it's interactive an a providers, So we and advertising do opportunity for more to because better tricky is be because the

beyond content run loss. that had that built gone think profit a programming or – fiber actually to built have the game, cable to the I a different take the as traditional in I've always who approach and would who a launch content's were bit – satellites – said people skin – going or

on data. get like you they their YouTube, As things into make money

we they who to necessarily an security about don't as things. look have say want own force would our are So as piracy not much as where they people at eyeballs, and – example, in-house care they pirating necessarily DISH,

totally and week, maybe understand they but understand get on lab but unintended in anticipate the stock they goes a today they understand that content it, headline steal a they programming don't contract and their a for the – the up get that so Internet and they don't right? companies, consequences. We something That's not from have XX boxes owners they our

people down. expensive. viewership I TV about talking good as – minutes is real a goes the not so more So an there. is – there's up linear probably experience. It's unhealthy and Having also part that's suffering that, on viewing said is think load because some linear not so gets product. is XX% have commercials, And of it's out now the TV about worst consumer commercial problems potential And declines, Rates you're while gone the are the thing thinking in that dead.

as thinking ways could And so, that compete can creative bit. industry things if about do starts a to then that. there's marketplace the we And change industry an to stabilize little

for so feel business a pretty We And the P&L the piracy understand side. industry understand the consumer side side the we the good We pretty well. well. have it. profit, well. of the business We side. technology understand of the We we understand understand pretty

But so can how people company. make, people a think with long term decisions bigger or who We're term well that. our make person we're or we're little we solutions the short and people think think not that what not deals And offer for we And the go to that. better. positioned can we industry they bit

that. that we're certainly connectivity long system So term. legs. well-positioned satellite and are we're in with to and business can that – side of the Not has OTT, distribution we're within and so video content the that real we good side broadband for side, for that's we're we the content and the lot positioned think many we say has involved there a companies the dealt still wireless cards a well on us, and And – the play involved the has – that business

John C. Hodulik

Right. Thanks, Charlie.

Operator

Sachs. Brett next with question our from take Goldman We'll Feldman

Brett Feldman

Thanks.

remarks, these occurring Islands. And that quarter? and not as any hoping that accounts financial then going or is is the all was the third Virgin taken give last and you're on a Puerto the opportunity And heard is, just here revenue the starting if really was long I felt advertising the first like about quarter. clarify it mean the the have think suspended of scaling time be accounts, picture on expenses? where paying you a on you Sling, develop incurring Sling, but But it to question us way? to Just around platform there in Thank into of one you to two that could going the And meaningful impact were questions. to I side, product way I'm just think the how begin the Were revenue going And to at really that's curious reserves talking can some you it clarify. credits sounds call, the you you a that were more call, you addressable in all believe is if to fourth Rico in start The advertising cost then I I programming of at at view start the like bigger factoring get how last you suspend your in and U.S. the you. going getting to revenues to the you're point it.

Steven E. Swain

Yeah.

third the On on of the us quarter, adjustment and the XXth you're as slight don't was don't we to paying programmers. customers, did the the because pay have have And as in a question, both September, XXth customers. then, If we right. well first we revenue hurricane

that So works. way that's just the

Brett Feldman

Got it. Thank you.

Charles William Ergen

math. you run But can the

be Rico. on to till ARPU? the a the You little in what's Puerto lose Right? XXX,XXX of revenue bit might customers come, – impact $XX a you But month, and side. going customers can our see less – pause, that you

Brett Feldman

Yes.

Charles William Ergen

said cost we believe probably then, Having have customer, us. a So impact you the don't long-term that for on And that, extrapolate we impact. not that right? material the could – that's but

Brett Feldman

Got it.

Charles William Ergen

know bit I'm well Global, In as opportunity of XX. because we in they're were. I impact yet disclosed fact, they the who's customers they Rico, a haven't just company – in Puerto Liberty cable devastated that guessing an to And their – some of they think counted August – the that through as as degree, than I kind I Puerto they mean, that don't think Rico, that there's other

the probably don't probably they know know impact when know know they So – but the the didn't they they the now, – reported. don't impact they probably don't

come And online those take a to long are bit bring little going that. easier customers So a time to to than satellite's online.

is could our at opportunity – the I'm of of it first, efforts humanitarian devastated, for proud doing some be more on P&L side time spent think it's guys we island is that. on and – there So than that a for lot but – which us, I the it

Brett Feldman

And on advertising? the addressable

Charles William Ergen

majority A of at can and dynamic – of programs tools we slow, been some individual insertion, ad. stream our have as the majority programs the and our as Sling have of an better And get but the again, bit ad on better now where at better and a to better we get go they're as that, the But revenue on that. continues getting about that that from programmers of see that and us. I to more results, that's going be something and grow both think of certainly we're leading for And it's easy. programmers some technology, – not opportunity excited that edge the a

profitable. So keys to is OTT it of one making definitely the

Brett Feldman

Okay. Thank you.

Operator

Ryvicker Marci with Fargo. our from question take Wells next We'll

Marci L. Ryvicker

Charlie. for Steve for I questions have big of then two and sort Thanks. a picture

for the current get either Charlie, to getting equity business. massive there's or puts and DBS a at At on the Steve, And So, down? And do are flow for stable? core keep as price, value pressure you how at the the ask given how asked. you a debt just what to stay paying I bigger the with I'm negative leverage comfortable free corollary then you question you're guess I cash EBITDA then can stock takes? spectrum and picture What your that, going DBS business, discount,

do you think what market getting So the is wrong?

Steven E. Swain

All right.

We question it's flow, first your on – DBS look the at combined. leverage, Marci, free fundamentals. pressure, do of all kind So, cash

Pay-TV satellite, Sling products I'll cash declining, on have, at As and we laser-focused how and TV now XXXX maturing Charlie through backdrop mentioned, with look the we different go and forward. traditional the flow. distribution and we're going that dishNET, it of

– as several subscribers bundling on on increases. introduced DBS, programming already we the price executing are are and Flex we quality we're and higher of packages. also core retaining some geographies drop customers locals And Charlie offset the more as right-sizing Erik disciplined and our to can where we're solution, We're also Hopper Pack. pressure. rural we also see already skinnier retention initiatives Erik acquiring as in antenna mentioned, customers well cost credits, where And into and For less save. mentioned we've

some we Lastly, PP&E to that see on DBS, spending offset more buying new. pressure boxes EBITDA CapEx by on of versus less partially the remanufactured using we're

and seeing TV, margin expansion. Sling at Looking we ARPU are

Sling tailwinds example, this, more we seeing are wholesale model as Charlie expect, we've seeing addressable ARPU already as revenue, increasing as and very For have dishNET, would channels the it where incremental advertising from products certainly for gaining for well from is scale you as pivoted we're And mentioned addressable grows. lower DVR. costs. P&L now we to TV a more acquisition available as due advertising, like modest favorability sale

with amortizing licenses, planning tax a XXXX. less year-over-year without XXXX But tax cash significantly our last in convertible interest expense to newly is interest deduction interest, at on like bonds, basis. we and incremental beyond are megahertz expecting Looking low had pay coupon cash year, tax, taxable from lower from operations into cash payments and the with for up income, gain incremental a XXX higher pre-tax taxes debt acquired derivatives, year-over-year sizable we from primarily cash

pay as on are flexibility market. we several because or So next cash, the maturities, nicely to over comfortable focused we'll those that the the flexibility we'll we are spaced years, in off we're that have the maturities flexibility have which out hit have

Charles William Ergen

it's of sense know getting the think term question – And in is short versus I wrong long Yeah. this term. I more Charlie. is anything a of that marketplace the that don't

look the financial to and looked I you know, – – – be I think other a factors I look so if at I factors. and you that And – always But analyst, call at numbers. so the at and if affect step look at backward take logic. all here the what all when other teach that you the a all and then you used – it. outhouse always it you I guys you

of example, around say So outhouse bumblebee. a Because engineers, aerospace a flying, the can't pretty flies. at say, they sure look aerodynamics it would bumblebee you're bunch of it see I I'm as fly. and if logic look a at I an

people video the and long valued. to reduce get technology the autonomous And have whether connectivity efficient, part. because, I if efficiency when within we're to do – the to then come to how much connectivity be vehicles you dead, company, is is there's are math never company for plays very, they that talked want more to or and worth insight cloud not in – the gains, you and do and that want more the an to that today, or as know. the on we're or connectivity everything or a – based intelligence big don't a and going it's move if edge. – that connectivity, net we reality, – still And don't And be of very scary it at term going do we And maybe they wireless look fairly don't to most any artificial And to one so credit able it, Fortune consumers more a there worth name are have and from municipalities can healthcare you you're our you should. $XXX don't the as your a industrial have or from to And of And profitable do just But side, into the going if there just probably over the bigger homes cost else, – first Maybe billion massive billion if XXX, that have it short doesn't is trillion, to we're going who that, today. I've connectivity if be companies our term, unless underestimate XG connectivity. any massive. next CEO was you to business whole you connectivity need to It's were And continue going direction. all, business they including your worth going last be – to your what their position they're get a out keep things do to profits and debt you're for virtual are business, move video CEO to almost overvalued, in to of industry be $X in business that'd – that connected. it. a $XXX

Marci L. Ryvicker

Got Thank you. it.

Operator

Eagan question Telsey We'll next take Group with Tom our Advisory from

Thomas William Eagan

you Great. service? give of us subscribers sense increasing On for you on churn? certain of Thank I with which provider talked certain Sling Thanks. what what's that folks use? your Could the time? sampling? And more strategically, churn? looking quality be that it And And that of you found happening could channels? of Is give drivers Is it about the a a it you guess color were the TV changed most Is broadband targeting markets. to Sling, little us you. decreasing? Is or have then has over

Charles William Ergen

to cable of the probably we market guys identical seasonal providers. share sure churn is not biggest – phone versus, in been much in Yes, know I industry virtually the piece that And having the market typically cable the I surprise churn but much TV. bigger linear don't share. is the of within it I would we I'm The biggest market say, – almost broadband more biggest has us, mean, is, than pretty skew guys. with OTT – what kind track to see of not think lesson it share the a learned – the you

ESPN probably and to rest big you're a be year. of go you're you don't not a – out different September, you for HBO, for subscriber subscribe if an – to to fan, of but say, might December. are a not the on probably got hockey provider the fan, you I big the between going to probably mean, or Showtime and college for package the on if are year, For – you Game of so you've but November, example, you're – fan you're to a of weeks you'd or or series. different probably a movies fan, going – OTT six switch maybe plenty subscribe probably you Netflix, have you necessarily not depending But maybe you Thrones NBA and don't to going Netflix, switch so HBO are you're – but to a going football let's October,

they're public and we then can to more when rival on that it, have have do to working network, is have have that's don't of that to but and to And have to that you words, consistent there's approach good and that sure content So things. those consumers. do we obviously, it's throughout factors extremely I'm the – the difficult you I service, we things for content from user year, don't a that's but those extremely totally Internet, provider there. to good interface service, live seasonal there's bit think going are difficult kinds understand other the you're control But know obviously, see and In TV a which technology.

Thomas William Eagan

guys that of the in can on terms there Is you do churn? the to anything lower programming Sling

Charles William Ergen

they go they but other because we make interface I and a in looks that I a other year Or all to we way that's Well, packaged grass and I right? a relevant the system think yeah, back service is as it mean the have – person and doesn't When have else, content provide mean, somewhere well, that long, come – then customers. need then content for user the people work it. consistent doesn't easy greener,

we say little – I We a much it's not think three four look buyer actually Sling, a the And or alike. packages have customer. same people, that, three and a guys, with the they So named so look there's for We pretty of get today, will Sling. I biggest different. – look that different little for that

what people, And people so we I the like think, we're majority attractive not of have. but to some

Thomas William Eagan

Thank Great. you.

Operator

from next MoffettNathanson. our take Moffett with question Craig We'll

Craig Eder Moffett

the the your how when about this is the wireless comments in then about two could that some different. bones clarify customer versus know more wonder customers. value talk put you've are Charlie, Sling traditional into if if just And meat second, customers you the value business, little But the customer lifetime made if for dig it could total past, talking of economics One, would about we Hi. still just talking Thanks. they could could because to I back you've the revisit be narrowband bit, you if you broadband going now been are the about more been could. IoT a you've questions, that connectivity of Sling and a you different? just some about think network? you past maybe quite dramatically Or customer data satellite you just acquisition in you obviously and if about on it? of I cost architecturally that I talking think about the network lifetime in

Charles William Ergen

today. consumer evident and the once question, there Tom technology customer with do Sling, – still that are and Sling linear the there's there And – a a second on I could model them through markets. let And relationship direct with come have you I'll Craig. life subscriber you On bit have that able so, little maybe I don't be a profile, revenue leaves seen, the be longer that he and virtually obviously, think that and in to And it's take and back. get lot believe again, will we that advertising opportunities it, know, connection, than the aren't we remains platform of the OTT nothing and to get you a but what a to SAC the the customer urban of we're term your a if

we do to through customers that of don't an us app, reaching think we're TV. what technology proven I things yet. do So beyond just like the it's with lot But of a to able allows

So, with I'll that maybe...

Thomas A. Cullen

to XXX side, Yeah. we XG view referring is defined, cleared, that so spectrum what as massive forth. around connectivity, our XG more Craig, wireless and Phase the are standards and after X megahertz Charlie after was earlier on the

and narrowband shared good one that's vendor with as IoT expanded equipment as a which still access We've FCC, we well. interim, focused several and March range of initiated and team we towers. had right other considerably. couple beyond we contracts now We've finalized of are probably hope that in associated the radio those very wireless the begun in owners for wide So have of than contact next We're terms months. more chipset negotiations We've on in discussions the quarter and with with build equipment to in vendors, with In finalize goes a a progress. XXXX thought. on the the tower global module

we agreements of So have XXXX. early in we'll those wrapped up think some

XXX of AWS-X because spectrum – requirements of the the require and So meeting megahertz, our radios unique for license both configuration development.

thereafter. we and in and development expect paid would radios So those have to we've later shortly fees deployment XXXX begin

Charles William Ergen

pretty revolutionary, work saying still and partners wireless satellite lot help. were learn at business one do there's that revolutionary. And a something we're not that's we – we're companies in chance basically, really of provide of that where building thing. experts. know – to to not the we that were going are ability to a are with thought and XX lot start never we satellite need a totally for same our people years But and And And have second same the we're to today. take – that don't more want going you work going help on to companies us willing And exactly to in doing to we that's to phase to XXXX, for a – business even it. term. that value, need we partner time. in able to chances – to willing had we're the We And we a and same many which people connect can't that's and of appreciative be that way did to in. probably anything network be are to to a connected. have to of a they in logically guarantee of us. success, all our my of able get testbed to in that we about no people – understand There's grids. willing going download paradigm wireless every outhouse don't partners, mind right? second and us, to a with not learn importantly, But people network need long going do. team We're we're material going to that don't guys a and do the that people didn't being people I understand and and of got maybe way who it But our it's and is network terabytes question And that the and us never – there's connected. the logically the first those to is understand shift to reality, wireless but business to those the And it's we I I that to that stuff. give And Valley, just what it's understand of of there's I is to don't partners, engines us consumers use have the we money things and also one understand – able make without smart that I are And be understand don't And that. use seen but can get going not building be jet I much I've don't it AI, become any still and business, don't Silicon that's And that millisecond. any do they it's certain in data that's just But satellite we – a virtual that's I learn

Thomas A. Cullen

for of narrowband requirements Craig, also XXXX March finalize very the confident So, growing And just the those adoption we're to by IoT. encouraged on we're that, licenses. in meeting

the a You've already of couple announcing products in consumer last with just deployments new operators the global number probably seen weeks.

those So satisfying And needs us some those there's with of they start for there the discussions opportunity we've of multi-national deployments. an cooperate had to carriers. as

Craig Eder Moffett

the so and different network AWS-X? the XXXX in Or uplink done IoT the understand, XXX mean and megahertz have time are that your that in a And I initially because downlink in be for AWS-X to there? the make just does won't there architecture you to band both sure deadline, going is the

Thomas A. Cullen

it configuration that the but spectrum will consistent and be we're shared deploying, We with compliant XGPP. haven't

Craig Eder Moffett

it. Got

you. Thank Okay.

Charles William Ergen

within But XXXX and looking I AWS-X megahertz think, certainly Craig, we for we're bands. – the XXX

Craig Eder Moffett

So using mean does for megahertz that uplink? XXX

Charles William Ergen

asking didn't that? Oh, Who network. about hear he's – I the

Craig Eder Moffett

megahertz? XXX the Using

Charles William Ergen

– our Yeah, so is yeah, downlink. don't XXX megahertz... we megahertz Oh, XXX

Steven E. Swain

we'll we sharing the uplink, we're – Obviously, configuration. but have not

Charles William Ergen

let's why stuff very do paying have creative creative. it pay put fees we radios, think not is But to develop – standard development we're material, right. it's it's solutions, it which they're But having but I not and why we're to that way.

guess, so details haven't we I creative fair. And is shared yet those

Steven E. Swain

think I from time question more analyst have for we the So community. one operator

Operator

We will our the from analyst now take final community. question

Our from comes Citi. Bazinet final question with analyst Jason

Jason Boisvert Bazinet

network business I the stock. and Or about out? something considerations, ago? regarding motivated to the we just need do you we're had together, together in even flow build an a talking were free than more see video financial IoT quick question Ergen, under one them still you keeping spectrum the strategic Mr. maybe for though that merits meaning keeping Is three years cash by

Charles William Ergen

space well, won. Yeah, IoT realize the

really of that video biggest ahead networks on modern we But skis a use future – the in So going a is marketplace data use to on terms is maybe together. video. in We but of go the answer the probably little the is the – their think think business. bashing biggest yes, be of we strategically they

is solid – a for think of a think mean purpose. they for somebody's for So a maybe sit marketplace opportunity here But there's today, business. Having shareholders, those that at is be a sense together. being certainly rigid. to side video said positive I an foundation look go we the wrong, we make purpose. and may if together effect got were net-net the and But assets of assets built better And Those too. not appreciate our idea a we we we the we're just take that, the – that. as doesn't

Jason Boisvert Bazinet

you. Thank Understood.

Steven E. Swain

Okay, operator.

to the move press. Let's

Operator

take media. now from members will the of questions We

question Smith with News. Our first comes Bloomberg from Gerry media

Gerry Smith

Mr. I'm Yeah. Scott follow I in to Hi, my up. Ergen. Moritz. actually want for colleague filling

Sprint/T-Mobile You guys that sold regarding about you And referring AT&T DIRECTV the if if off? Time more you options any wondering had I comment want possibly whether DISH. call talks one wireless Warner said was idea I and to question. today that specifically general companies AT&T/Time you deal. in earlier DOJ get partner? the Are deal you in those you this called ask and might had of But a in about know the the didn't for Warner you might thoughts said second then and being a see to collapsing, in

Charles William Ergen

Was you question a think that that a was off Do – that... I'm that? you think subject. Is – that's a about just

Unknown Speaker

Yes.

Charles William Ergen

owe me $X. you Then

Unknown Speaker

$X. you You very owe much. Bernie Thank

Charles William Ergen

merger have I for experience the understanding been of T-Mobile not that didn't money. But continue quite there DIRECTV we connectivity, general, people And we of to some you're part, guy go who my of try say talking ever. are that fees think Sorry, the And our kind optionality, some yes. options question Sprint can here only answer additional That bets be to course, breakup that turned – we the On time, to The with if down – much attempt answer largest turned better is of down then that's they have there. option. Warner, is there DOJ important time going only going. and, or just kind – that continue in AT&T/Time paid obviously other we'll your are a At internal not at perhaps it. though, to so get in and that out to as I one – to be the together, – a that options. has the

and and DOJ deal was we – learned that their everything grew I – merger they that they fact press what very doesn't that great disappointed And second they but process that in wouldn't I see have through be probably of for the process the merger per data in our despite I had I that second we at say staff experience – a have at having of that the because how look wouldn't do – they or never, I ever of you down, said I I learned a proceeds. we'll they wouldn't in turned look what do but despite that pretty how job, so guess guess the don't a respect – have. that don't actually I've information pretty read that it law a that, the and So the with of may things, and particular, lot analysis that the have thorough perhaps press it's

means no by ways and there's I think it out. think I is certainly dead they work that it maybe can

many of definitely But and and about think distribution content that people and concerns on impacts the would their is And could the in to the right? press as the huge have in be we we'll negative definitely that, to concentration protect have there's one company merger, Department, There consumers. So job effect net a of see. legitimate ultimately, highlighted certainly consumer. the Justice

Gerry Smith

Thank you.

Steven E. Swain

Okay.

I there – think media operator? there are no other in are other questions queue,

Operator

questions this There are no further time. at

Steven E. Swain

talk you We'll to the time. thank All Well right. you, everyone. next

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