DISH - Earnings call transcript Q4 2017

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Operator

Good day, and welcome to the DISH Network Corporation Q4 and Year End 2017 Earnings Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Jason Kiser. Please go ahead, sir.

Jason Kiser

Thanks, Michelle, and thanks, everybody, for joining us. Charlie Erik Chairman; Carlson, by of Cullen, today Development; Corporate our joined Ergen, Tom our EVP I'm CEO.

Orban, Swain, We of also CFO; Steve General DISH; President and Paul our Warren Schlichting, Messner, have President of Counsel. Brian our our Controller; Neylon, Tim Sling;

going know, is and but Erik safe our I have some do So, remarks, harbor prepared Steve Tim to disclosures.

Timothy A. Messner

Thanks participants ask that reports. not identify or Thanks, firms We Jason. media us. Good for joining morning, your their everyone. in representatives

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

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

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

W. Erik Carlson

the few who announced on bit I'll a Swain, our Thank take make Steve a to wanted a new will financial turn you, review end organizational Then results. it Welcome, go little year, everyone. I'll so I a our of to moment Tim. on We structure last CFO, results, deeper over at the that. comments to and

we joined and Wireless bit CEO me. of I so Charlie December at I I'd little stepped XX last for served we launched day-to-day operations, dedicate One before you And operations. appointed and care roles, Charlie company's I COO, department give DISH. I. of thought As you most shifted our President been as EchoStar background held here subscriber to company President that as our leadership to served. a including our services overseeing is been role various sales, have I've years in-home I've I've TV recently And the DISH recall, TV organizations. the just from and CEO, customer every himself away and And satellite, the in the development first business. Sling roles; may on day-to-day

following TV a we're And Pay as the got to XXXX, business look growth Wireless. business got So got TV segment, we'll a a out and in lens. we've at business Sling our in DISH future in starting business the business also we've TV. Within through mature we've

I'm few to going here on speak Charlie on take and Pay Wireless. are questions to moments a Tom any for both your and of TV, So

years, TV no is technology, future. maturing TV over had some years, in satellite that pay we've service, and see the DISH DISH We We engine dynamics have believe best So our value. growth the said best the business. early funding that is opportunity. but the the can still customer doubt, really as offer, best get. a definitely at We DISH don't provides best And you TV, the that's business that we we experience

and customers. our competition rural growing. adding customers we focusing the in cutting and percent despite or back roots both focus our get newly improving our we XX in years mix, DISH half of just long-term as we two on churn customers, XXXX, definitely profitable million low tough TV is the by with The competition in And retaining and cord sitting for or voluntary So on rural ended last a markets acquiring above subscribers, offers. really and stable subscriber spent is bundled to aggressive really, really acquired down

front our and equipping line more As agents well save with loyalty we're tactics. customer-centric as

higher multiyear a low. addition, customers are quality to In churn non-paid driving new

which with we're to We've doing at first Pay got a integrating the with All DVR November. outstanding product. what in launched We're And and the we'll customer the with provider best Those customers with love voice And continue by great Remote later Netflix. TV have superior this innovation. control. TV be offer our service churn delivering complements margin. value. the technology, higher integrate the hands-free on customers putting Hopper Google that and definitely Amazon Alexa. newest to the challenge the market really lower through with the We're we're Assistant committed year coming first sector first Hopper. way, to this Now Voice And major the the to control, we use features in

every Now we've definitely on to service commitment country. by day through number really programming one taking employees DISH been service And a our J.D. our installing TV nationally who in and And Power the the we who and to innovative ranked through calls customers are frontline are providing across front, packages. our customers. that's customer value our customer testament

through help For content option Flex right-size month. locals over It's With get receive antenna. now offers through skinnier ability programming technology, free antenna to our that have $XX customers a example, Pack. got save provider customers And an the on like Hopper. we've off-air seamless guide that the we're the who a can into packages to experience their and the the that satellite an customer only right local easily can integrate or

increased overall XX,XXX over subscribers Pay fourth looking segment, the approximately TV TV in Now net Pay our quarter. at by

where really up expenses challenging their Hurricane while friends Maria. returning these tirelessly we to that XX,XXX of with the team in Puerto connection who Rico a own help in and reactivations the following customers devastation Now worked includes for of in and certain even subscribers Virgin I Puerto take thank our very moment Rico want has families a running, back to looking out environment. to get and reactivations in U.S. the incurred Islands

pharmacies, proud emergency fall. shows. that a that just missing I on island launched of the And and long command have to and families DISH to they return have broadband I'm their And as team last from of have customers weeks storms our our had that program. part team corporate sports since service. from to spent across We've say, satellite new the also citizenship weeks in the connecting Cares We've may hospitals, worked doing work we effort effort broad help partners assisting retail ago centers. immediately the members the the entertainment help incredibly been recovery our many there get hours, FEMA sites, we're mainland to team Sling TV installed just the away DISH island, that members have and Our folks the few

internet Sling X.X on-demand create set XX% than pleased million we've moment in at was leading with the And reported of model. No launched remains TV three and paid doubt and Sling Sling growth. take subscribers. you've first live Sling within our and our and Let's different years a service, saw look closing it XXXX when to and a the notice subscribers fact growth its out that ago, streaming taken really we're Sling the DISH TV individually completely more TV Pay with year-over-year growth, business TV TV TV. segment. we

get the to TV for really how was of to give they new and standard a vision set give ability consumers watch future customize choice television. Our control their and consumers the more in To broadcast option packages, cloud with even antenna, come service. things optional like and free DVR option optional out with the add-on locals experience in an of to entertainment and the to the

XX% record playoffs, subscribers is college So on watching areas fact, a platform. to football the throughout programming live to we're that we've seen This margin TV our expansion broke been in improvements translating more we concurrent the in that Sling XXXX, better platform. day. continue per steady the more able really greatest the engaged And, costs rise, using to in number focused stability of we've Sling for control. during of customers With

growth led tenfold For of really been add-ons. our TV penetration due to has as Sling our this and that our has leads programming and DVR service. that the up TV instance, double was CPMs ad Sling targeted really increased more the forward. And well events digits, nature by customer-driven sales to technology reflect higher Also, pushing pay-per-view as ARPU year-over-year,

Scott, few Now it like on leads Officer, the business, to customer is our then before I really focus another putting the that possible. and I've goals, one welcome of mentioned fielding one Steve best a to comes our the to customers. team our on through summary, David it leadership touches And and HR really and month. to XX-plus attract, over team the retain whole first new earlier Resource he that turn over I'd I'll that which Human Swain, end, turn final team to us that Chief to item our for work to officially continue roles, served joined and He develop briefly to walk notes from Walmart he'll on best With to our years this the CFO, various numbers. a in Steve who serve where

Steven E. Swain

right. you, Thank All Erik.

was the at P&L, million by was gains. DISH was higher an shaving. in of subscriber TV DISH subscriber TV a Rate TV's higher-priced take an sales increase, down and as by XXXX. $XX.X by TV a compared well revenue. Sling X.X% or mix partially revenue Sling ARPU billion, cord losses, driven partially increase as increased customers price TV pressure DBS XXXX Sling Looking packages, of also ad TV Sling rate $XXX offset was This to decline to pressure seen offset due

While in may credits. to ARPU they long-term right-sizing offer loyalty comparison initiatives simply solution create pressure, a disciplined better, short-term offering customer more

utilizing focus TV well DISH As higher Erik mentioned, because of this activating as decrease to on save as we've tactics, multiyear customer-friendly quality subscribers, seen churn lows. our strategy,

expenses, year-over-year. is DISH result offset rate Turning fewer by the $X.X subscribers, This increases. to programming significant essentially were subscriber-related primarily flat of TV billion, expenses

in year-over-year. decreasing X.X% partially in DISH that or satellites billion, costs by the Sling This at litigation and is recorded increased subscriber per one This $XXX down were XXXX, acquisition from the TV. of DBS value Selling activations expenses $XXX were settlements offset we million to At primarily administrative concluded TV XX% costs by was reversals fee activation, or favorable we value. XXXX. primarily XXXX. exceeded related decrease expenditures TerreStar end fewer of of carrying its XXXX acquired marketing early Our to million, $XX million variance and and $X.X fair compared lower the driven

spectrum million, net $XXX and perspective, million book charge From new to liabilities $XXX an remeasured our a this a our As be the cash an taxes, newly-acquired federal statutory This seen reform, recorded flow. federal largely impairment In including resulted from result amortization impact well of as $X.X on due licenses. to billion licenses, not of XXXX, pre-tax we cash assessment, benefit the we re-measurement XX% of $XXX to not charge income tax due the in as pay tax income million. income the noncash P&L. wrote of of rate. tax line and megahertz deferred did did our net The to down tax XXX can value we lower the

have we on not interest, for the changes deductibility spectrum indefinite tax is purposes amortized resulting tax for amortized may In in limitations reform, but including increase mentioned and cash is purposes. for taxes. federal from book asset past, tax considered lived XXXX, As of an the paid

including impact the of and tax depend variables, strategies. results our XXXX planning ultimate tax will However, reform on several

Our in decline XXXX, CapEx. interest strong. EBITDA $X.X offset to million taxes associated partially in in raised debt XXXX increase year-over-year free cash by lower $XXX flow approximately attributed lower and of cash of billion cash and in a an was with payments decrease The primarily remains

April We have $X debt note The X, maturity on on balance is XXXX. a billion. approximately maturity senior this remaining

this from obligation cash. fund to expect We

December As hand. of billion $X cash on equivalents XXXX, approximately XX, we had of and

thing In first not revenue the standard, the note terms will be to new that of periods recast. prior is recognition

life. amortized But be be acquisition incurred costs in the related which Therefore, we change than revenue. results report customer do looked in in us will XXXX show a we be standard, as The impact capitalized future, significant will subscriber costs commissions have anticipate estimated through previous over like will and XXXX using XXXX old our the we not lower the currently standard. to to expense biggest periods. as So costs. commissions would will also the under new what We to

commission in to XXXX. return expect We run expense a steady will state rate

fees and will there upgrade also as contracts. be significant Lastly, impacts other less to commercial items such

all flows. impact course, and to will not changes these be classification will Of related of cash and timing

think I open to Operator? the it for from analyst community. we're with So questions up that, ready

Operator

Thank you.

first Cusick of ahead. The Please go JPMorgan. Philip comes from question

Philip A. Cusick

in the XXXX? that OpEx Hey. CapEx progress talk Thanks. your Charlie, expect as and should you network, happened can OpEx plans, the Wireless both on that's the Thank versus that we about so happened And XXXX XXXX, far? far the you. so in well as and drag

Charles William Ergen

Yeah. him so than that. I'll more can let Tom – answer answer a let probably do, bit Tom I'll I

Thomas A. Cullen

team good significantly so XXXX towers steady network to don't activity Yeah. agreements partners, know enlarged many We're deployment the associated there. in We've lots progress. add equipment and the network We've buildout. from Wireless. continue chipsets Phil. the resources I executed with progress on negotiated making Hey, actual to to to number in of and Steve,

Steven E. Swain

The between that XXXX, and negligible. change XXXX is variance

Thomas A. Cullen

practical the Okay. to up would estimating March of complete comply as spend But morning, In one beyond few last narrow XXXX. that disclosure as what network. of $X gating That with this the in associated that for to deployment quarter the IoT, we contemplates requirements XG which you the at meantime, saw probably the a we call with first XGPP license the use non-standalone billion would there's filed One spectrum in we're that. of which factors and broader this of be that's December. network to a the the is by network, band the is – approved standard now to was year we continue two they in phase look Phil, phase

Since the this that XG waiting that to incumbent prioritize for be have to. would which contemplates and particular core we the entrant, would year. we're standard So to roll in a XG standards you expected standard, later that new standalone the carriers a is be ratified understandably, process, back

months auction clear, point gating and won't availability those occur in broadcasters of XXX the deployment that to any practical probably megahertz Since is spectrum. have second XXXX, XX clearance until all with the The so of the the two phase XXXX. early licenses associated ended

Philip A. Cusick

the Thanks, $X then CapEx And that March OpEx Tom. billion, both to is XXXX? and

Thomas A. Cullen

Yes.

Philip A. Cusick

Thank you.

Thomas A. Cullen

and XXXX, XXXX, of it So bulk into then we'll will some begin clearly, in that in to XXXX. incur the fall and

Philip A. Cusick

very Thanks much.

Operator

next The ahead. Marci comes question Please from you. go Thank Ryvicker.

Marci L. Ryvicker

organic bit there us a EBITDA about And the concern some capital that walk high quarter? with of just leverage talk a you comfortable you EBITDA bunch is number your you are of your on are to numbers about just then, an can you perspective. your the Steve, think out maybe for there there's little of market talk Because different that fourth how the target you. have at is the Thanks. how through point. And may I from for is? used leverage what you Can calculation. tap whatever Thank height leverage

Steven E. Swain

Sure.

Okay.

noncash was is Marci, about at quarter, excluding the fourth asset of the the look For what impact we $XXX million essentially OIBDA, impairment. the impact, which

number So of that's kind the the run rate for fourth quarter.

down As year-over-year you and others basis. have written, it a on is

As to we look XXXX, are projecting forward to bend that trend. we

mentioned, our As was The if news acquisition we proof overall even that the focus on acquiring subs, points. fewer Erik have story impacts good seeing subs. higher-quality we strategic and of retaining are

better-than-expected. last And a we through were have another multiyear is insurance results We price our is point in profitability. proof which just low helping went increase and our those month

acquiring retaining our So is and subscribers higher-quality working.

and expense phases – interest expansion well in cash interest we're start see at $X as million ARPU paying in to on penetration about that's XXXX. the coming billion about expect bending the ARPU on in advertising, addressable the margin as the and expense still X, basis, from the On as We side, Wireless, so spend such down add-ons, mentioned increased April $XXX bulk I Tom debt XXXX, income look with we'll tailwinds couple year-over-year things. talked that And DVRs. we so Erik We the and the see a – do EBITDA in a with Sling – talked trend. to taxes. XXXX planning we'll be already

of healthy so modeling our out well one as add now a flow. to XXXX you cash XXXX, maturities, are certainly the or debt one in pieces, all we months this We're accordingly. come and as So, free XX the should if another aware up in from planning

Marci L. Ryvicker

you do – target absolutely go a end a you there or Is that just a Okay. have won't leverage above? high

Jason Kiser

hits. pretty a do that's target. leverage up plan comfortable to Steve now. This the at put never, a Marci. is don't formal a stand never April. maturity maturity we as have put before a have out to in mentioned, really capital Yeah, target. leverage out off, We but We're we plans We pay where with any Jason. right to the We as coming pretty have next really go markets got present, wide the We've gap company,

Marci L. Ryvicker

you. Okay. Thank

Operator

you. Thank

Our Bazinet Please next comes Citi. of Jason from question ahead. go

Jason Boisvert Bazinet

the that I the the in put just not depressed factor? really had was may a a have any on question that guys quarterly Was Puerto in quarter? you that there Rico is Or EBITDA from up. reactivations the XX,XXX EBITDA impact material that

Steven E. Swain

and below in material per subscriber have wouldn't. impact costs that those EBITDA. sees. included to the It average add were a XX,XXX doesn't It acquisition normally cost It DBS reactivations the was

Jason Boisvert Bazinet

Thank you. Okay.

Steven E. Swain

average. On

Jason Boisvert Bazinet

Yeah. Thank you.

Operator

Thank you.

Our of Please Deutsche Kraft next go question comes ahead. from Bank. Bryan

Bryan Kraft

Hi. DE situation. Good had afternoon. I to I wanted on the ask questions two

clarify I not to XXX, if want the with will the DE be it for any overly dependent light satisfactory or satisfy that the shed that you to the might a paid rights. there a able FCC I there that be $XXX And is think, case – or In First, up you a remedy decision? you court's is you be that also was comment, words, come any FCC. Thanks. is not diluting and And great. other refunded on whether would DISH's any that FCC? given know to that there penalty, whether is then without on the that'd could wondering the could could or governance remedy work realistic If million with you structure whether how at secondly, it come had you there's

Charles William Ergen

and a but we process the concerns. don't to believe so Charlie. controlled concerns. ask a the public chance FCC, at remanded – it's to we concerns, question. to least wasn't We're address has court more really pleased is forth, some maybe stated court. ever Bryan, we're we're believe the the and was DEs the back have but as pleased entities, we've about court. by little and certainly think, get I their by The penalty I We was so FCC pleased notice, the FCC's the we're we that by that. that the and with It addressed that we these hopeful the did not negotiate. This has addressed, can not it Obviously that the million, $XXX addressed than address don't about

think the open an I court. that's issue So with still

$X.X of at potentially over as and much about in there's issue discounts penalties. billion million So as little $XXX a

Bryan Kraft

Okay. Thank you.

Operator

next The Stanley. question you. go Thank Ben comes Please of Morgan from Swinburne ahead.

Benjamin Daniel Swinburne

offering Any and expecting? should were this is we benefit the Good we offerings Good at get amortizing what going billion think the we the don't I just build – calculation you but last helpful. What What commissions, about if in Steve, color Charlie, like $X right kind afternoon. so or EBITDA know those at what can and related, on market? to subscriber costs? $X service represented Charlie estimates, then, to for all. up. talk own how Steve. Steve, billion comment acquisition more have interest from going And deductibility would help bit bring there morning. beyond or Thanks. there. may and capitalizing coverage We by may least the could any going about can in or year XXXX? so can you're of on be think be our be related may that or costs through taxes end to to made help the implications all – a you us XXXX Thanks. about cash of much is network you up at to And Tom the then, the be little more of look product the a

Charles William Ergen

will narrowband it the maybe came the and around and companies major a Charlie, to narrowband narrowband with of is their FCC to want the and jump But communication the across a for after about world declare It'll country, disclosed minimum United network. as obviously we population the year, network, cover This States IoT intentions you've is and out IoT. a in. network, Tom XX% the IoT we also talked at last seen

where our situation recognized step It's a So that by it's bit is the ties obviously not of the cleared our not DE levels. because at of is side another connectivity Obviously hands resolved kind in because has, being networks. – don't world the today. spectrum first little factor only yet, the going it's – all we're that control is we people

the a – So we that for marketplace standards, in on XG to like our obviously, the we'd to. like have network in phase for to not to in XG will the uplink ideal not And come probably deploy we'd standards, spectrum is two network. us product use then, time spectrum broader

a network, built day-to-day So, is really just Video focus part a we've of network, a got it is now that of great my team, of it. component satellite that group is the as but all we've go a here. passionate well. on it's not play play along, people Obviously, things and that part

like. Like narrowband So that's well-versed should that of we network. network, terms small that of where look just we're with but XG networks next think foundation will the be go we'll in of a the else, network what IoT total anything part generation really in

connect and don't cover engine need connect the of and answer that an – about – growing that's country. to microprocessors connect people it's data, It day, that. and a applications will but will within downloads lot you that of I short airplane can a to least start XX% all will sensors think rates, devices a So going off of to is to it those reading at it every you frameworks for jet not where data fit just, it the

municipalities that and some beyond rolled has like we in go IoT could so and ParkiFi, and cities so and space and doing leader the meters of parking called As of an company terms terms a was went and forth, where that. acquired of into in things we're a parking in we an we that things the example, parking in company out and that parking applications

some that's customers. IoT, – done to real business team and added So we've and real expertise had some our got we've

bit So built a it's to we a to we want decided a XXXX, hearts we've into never build satellite, there got when It's with in doing so. is bit little because and team reminds it, us. got like, that's new doing and and a we it Tom, me We about put anything Wireless. passionate who you add on great that? we're do souls doing our it, dedicated what satellites

Thomas A. Cullen

Yes. a coverage we of XXX provide is on XX% be, to terrestrial a the population clarifications. Ben, U.S. and just couple requirement, The of will the to not XX% signal license it's the plan population areas, in basis. so each of

as product As development, services still in work far that's and progress.

As Charlie encouraged are We're enterprise/commercial as said, see actually, as also activity, but the there's verticals, several we – globally. municipalities. well applications, clearly, by consumer there

seeing and at a we'll user narrowband and in looking said and bit applications so earlier, we're Asia modules, are IoT, what we've chipsets succeeding cases. be devices elsewhere and You're and, monitoring Europe end and and executed as so specific business, I now agreements quite services around for business already

Benjamin Daniel Swinburne

guys. you, Thank helpful. That's

W. Erik Carlson

think Steve Yeah, a I Steve had – questions... that, couple of

Steven E. Swain

Good morning, Ben.

Benjamin Daniel Swinburne

Hey.

Steven E. Swain

update new of giving EBITDA don't But under rec you give EBITDA. old in far say good first to we're rec can from QX. then results because the I don't So mentioned, a specifically, EBITDA, I it's mentioned circular. as an you'll kind really little taxes, cash than a we impact after and it's have X% specific And the on giving that. we of see We'll give on guidance XXXX as going EBITDA, standard, guide, number commissions, as I and impact, as it is not as quarter, is, a be standard. to rev on that the as well the less rev guidance

and But be the net it's, and B, measure. all So commissions you'll all it's to of to relatively small A, see impact should EBITDA able that items good on be line it other guide; changes. the

Benjamin Daniel Swinburne

Thank you. Okay.

Operator

you. The ahead. of comes from Walter Please Piecyk BTIG. next question Thank go

Richard Greenfield

the It's side and all be video Rich on is Greenfield. nature couple the of on – a will But back reconnecting business. on Hi. with the call. next of Walt your somewhere questions,

nor all been to of that's has Disney think to by the packages. be cost DISH kind able not you it's down content, of the So of of Fox? any in have sustainable keep going compete Sling, that Do you and now programming of in light their than so Fox channels, separating Two; of for other them in-process Disney really none and the raised against, between vMVPDs adding merger price.

that numbers actually all all reporting, much. then subscribers want I remained costs, that And XXXX. international-only the predated in assume, the just sustainable? so Thanks that Sling same. programming yet housekeeping, your has what to that actually quickly your just on sure rising, Is you've Sling keep make pricing I So that of started call launch the now the we early includes retail

Charles William Ergen

in forth. Yeah, Rich. got, like merger. the about beast AT&T-Time today have so quite that anybody obviously, have what you've then, Fox, obviously, obviously, marketplace. that. a Disney, And, Well, obviously, Warner to I'll way choose and we'll nature consumers And take is stab and the they watch. try at And, concerns. We'll, concerns for would pick of not obviously, the the to

the big-enough Washington, in change to So to that. next to and to potentially rules one or we – don't like will over the months, I company be adapt and make company not the we're built our way landscape can the everybody think we the else. able other We are to subject make the XX courts

that. not, bets, made, a in player the the we three and we largest of but that of acquire major made And, to and been going sure in we nothing we've spectrum think we're three business new the business, acquirer that been to be biggest is a that you if opportunity around pretty to all-in, think, put five and well-positioned people come about clean last can we've the be and think I our other of take not had have when in video is we've than quarter clean that's of the what we a spend with business. want take we're we ever – a see lot the spectrum. and adaptive make a on best part for guys with been a number we've try and sure again, auctions, and time going a spent ability And to anybody being saying and we an that and connectivity big we've can, and good real contingencies going and them kind XG connectivity gone that. haven't the of where in kind a paper the we going these as of and as look have we and I a years, of talking sheet profitability going to what capital, we're sheet video change. last try to be There's we not to to to first which for is not be in we could for long know to our make you get to where and money So big we're to world to a our we've new think be to bet the We're a enough of able to video the have they'd plan lot accordingly, And probably return saw to the here all-in that and then network. – of be paper, customers certainly confident we're hard last made industry adjust at the bets, to when

for to guys think welfare health that and add of a we what than the and We make are that of to productivity, what for it's should and We other different feel have the and pretty think that doing. looks like. to competitive, be country that's it more little us. look profitable good a going some going this We think

the unhealthy And mature and healthy a business, still a his should team and so in a going way, you managing a video cash way manage – business away, and are in mature very a and business not well isn't Erik it's business.

I you costs, as to you think, going that to need and rules be the change. opportunities, business, – cut extract thing will the out can TV I industry regulatory consolidation there's declines are those and efficient, to more need and linear going you're that in think, where to

come will that see in And so, lot you I future. about think, can different of a the things probably

of – I haven't years. of for anything there's ourselves I think five don't don't the internally we've And those of on anything going think and What don't kind been projected come ahead I connectivity. on most the happened I the remember. think question? a changes ahead the well over are – other think that I that's curve certainly we're the things, we've bit was positioned last that So to we and curve that

W. Erik Carlson

– take Maybe could obviously, looking Orange services, number subscribers Sling Erik. at is we're just international you mean, Blue, so Orange this us, could different have, you maybe customers, plus just paid and subscribers, and a international. take take our Rich, on right, from you the I we could on of Well, Blue,

subscriber For us. would example, plus one Orange Blue that if as count you for plus took international,

Charles William Ergen

X.X answer subscribers the million And is customers. in some are short X.X million international-only the – the

Richard Greenfield

question. the was That

Charles William Ergen

right. That's

Richard Greenfield

think court going next thank sorry, then, But to And head transaction, all up where government being if the just the see Charlie, as clarification. the by Disney-Fox Warner shares to Obviously, that that think DISH government or DTV, do the should they AT&T-Time view same your just harmed for Warner deal? you But you that the to the view – month. deal? transaction, on about That's ends the said AT&T-Time view. that way what how follow And does we'll you the sees about clearly government up. consumer the

Charles William Ergen

been with that then that argue extent similarities Department, that's is would differently. transaction each around between particular, to mean, those the case. long government I experience the and think know I've I that in my consistently. different But to treated the be typically Well, there's there Disney-Fox, them is are Justice enough handle the that will should I In and

Richard Greenfield

you Thank much. very

Operator

ahead. from go Feldman next of Brett Thank Goldman comes Please you. Sachs. question The

Brett Feldman

of could with over I that. portfolio is field And you about really The question, you the the A built then XG, I clarify Thanks it's modeling discussion what provided, quick for and your Wireless that. P&L, charge playing there's the kind spectrum about and that's And a about was visibility around. into there exclusively question. drag when picture a we $XXX bigger a is question. we question bigger talk then X whether at question. in substantially when the bands And view investors was satellite if included think some gigahertz. Charlie, AWS-X in picture XXXX. segment looks disclosure impairment below like the modeling of read the new hoping you taking EBITDA that almost in is, about including XG, XG million is Wireless look

XG So broader your you you those could fitting with by assets, I resources, spectrum maybe into or for could about is wireless something partner we and lines. ecosystem. Thank whether and it to just or was along frequencies your bit how in higher identify even you either a hoping you. it acquiring think a the back take a moment important scale talk see you And step working

Charles William Ergen

You take... to want

Steven E. Swain

Yeah.

segment. yes. hit one, $XXX did The first Wireless impairment the The million

Brett Feldman

you. Thank

Steven E. Swain

Noncash.

Charles William Ergen

And it's good then, XG question. a the on Brett, question,

I can job take all, even the United lots of the been in congratulate spectrum FCC it that, FCC because mass general and the and fantastic of statement, of good higher I'd focused and XG of really part, that. is, XG technology is the and spectrum confusing, the But which on very accurate. States. terms of XG talk within bring things is offers efforts the was the as And on spin-worthy. like spectrum, that end much information First in say inaccurate the that you would millimeter there the that. initially They've that wave pretty obviously, done things first, misinformed, a the has some on of to frontiers, And more of to advantage MIMO a

the a that's megahertz. levels our don't as to that we wave XXX millimeter – the as in as made of our and it. there's a but Chairman use we've pretty the But in into megahertz significant to be we could – XXX But Wheeler that right of, at rule XX others that there's use low focused spectrum bands look of so for that Chairman additional that that technology. impacts administration of about into in XX.X make he's technology a we're spectrum, it at. And into to take GHz it, about administration to focus. we own We previous of believe that. much spectrum. believe and having we, as that T-Mobile just XG to of in this come side get could put our And own that well. because you're starting as hopeful proportion use. gone the spectrum sure terrestrial XX.X to away the it Pai that, get bring top kind will they're of spectrum, of their any up, FCC that do that Because on particular – XG been will – has look that We've all would terms about before we making network own markets actually said frontier be that asked spectrum that and on at most bringing In will going see didn't quite other get looking

we some have that. We in of some XX So do states as well. own spectrum do four gig

anything little of and to up with. where can of to like at initially. use. efficiency a demands technology better, the gets gets I a less data better. the that fixed make The we've think whether that, continue meet the come. as We it's better, mobility bands technology going knowledge about we There's a But millimeter. the everything the population we're in But all increase, So wireless, that – need least terms in bit country about resources new else, gets those more we thought that think a

intelligence care in seen our virtual an United States. and changes haven't and effective the to health reality We artificial

haven't online those of vehicles, amounts things We tremendous seen yet. just come data. autonomous And

a – we So every we resource need part. to the need play all

networks you When there's beyond paper that I'd cost they slice one, can the is, today. as you when multiple people things networks. that as a you access can of and way se example. kind on that to all if efficiencies core terms per virtual your in – you way virtualized so think when The XG, to network, start sheet other The and can a you virtual the That's have today, day then it technologies AT&T we not say latency efficiencies entire that with make. believe will at but network be There's look that of notwithstanding improvements your But going things leading of things you networks your improvements, an network. their could a and start do own day thing from like XG virtual anybody's where your – network is in you the think there's the at from clean least we own things we almost that big bunch the that's with certainly can you one. network being network of huge in about, difference. our

start that networks in in of about things data thought were that don't there's a thinking never you network for that things your can So do When IoT have somebody existing we want secure doesn't security. use sure you make making of and security that customers to. more or today, that maybe in bit

that paper of Doesn't better, prop all of other those mean the going have off but guys fleet. same want sheet down do and cost lot years a safety that less Southwest the just efficient to analogy down that than it's and we own, different are a maintenance to with is wean the prop the like the we take little to all don't jet jet network things are engines, where per planes engine, don't XXXs and and that people is more world Airlines much that of can It's and So out them clean it's prop to and they jet start thing. beyond write they We and a a XG much costs make get side with an so start the bit today planes invented engines. the get today. to is my planes, airline number per are is just and we cost – of just again, their mile

Brett Feldman

the don't would wireless would traditional a about of partner continued space. your paper the the of appealing is space? you that would apologies, seem most in to appetite efficiency. you not efficiency like presently as outside talk be to sheet think all with Do and you that talk If build the you I companies to real legacy. and clean to out Have DISH none you network? there's mind, clean of mean, who they get the It somebody sheet

Charles William Ergen

sheet needs at companies that their is that attractive are that, you their maybe data have that in at future. believe think people outside can the clean paper their huge they looking of situation. and of of look some in planning might that approach be industry I who When to needs data people

are in space to think also people in answer particularly other re-farm to to gig, they I this their say, where question, to I have attractive forgot who get spectrum. it's the below you as X

so That's to as the car's road. do. the more changing the a little And bit tires difficult down moving that's

sheet XG So would for through paper XG their those of hybrid farming artificial of deadline companies the to potentially of them inefficiencies to and to – an network re-farm with a clean without having go a their allow network. enter

business the appealing outside So any today is network companies, both I and business to think in of our number today. the

Brett Feldman

you. Thank

Charles William Ergen

move media. we before question more one take we'll the Operator, to

Operator

Thank you.

the community. question final our analyst take will We from

We will media question. answer the analyst to call begin this portion this final following of the

Omega question Please of go Our Lee Advisors. final from ahead. comes Cooperman analyst

Leon G. Cooperman

under questions in really. I to have wire. the directed Wow, Charlie, two made it just

First, the game skin anybody. in you than have more

patient work, have mixture hard do are at here, going of that wait as we deteriorating. of creating creating businesses are That's to I'm your businesses, value part and believe sunrise, than rather a have for that are one. businesses, that and you're deteriorating whatever. a growth of are long-term value that's those sunset, us just being You curious, that question that you you team the business

Charles William Ergen

the okay. Yeah, second What was part?

Leon G. Cooperman

very is, number then And two question hypothetical.

done, divest deal Time Justice what if they you willing the to with idea do, Department but DIRECTV DIRECTV? after or you think have would combine wants is in Justice to event Warner I to a get allow were the deal. not the Warner do to no do going AT&T-Time

Charles William Ergen

easy. is pretty question Your second

in DISH XX so to reason the of And to terms is that that going lot ago to indexes. DIRECTV. think of years really and combine But products start double out digits MVDD-type people could you terms already that marketplace, you're to in from was do of consumer. say to you three and a that today XX two when today the the bust close ago who years tried I I have or

lot a choice. there's So of

going maybe nine. XX So you're from to

a growing thing rapidly. the back was So those quite DBS days, business second And is, in analysis. it's different the

is it from today. suffering some mentioned, you deterioration As

the think is a different. bit I So little marketplace

I So look that's that. but information think opinion positively, that at and I have Justice that would inside on my no

value, we focus into personal as have a is every walk price. can shareholder we and day. don't stock come our I scoreboard. can As in our office, tell our day an a don't you And have far here long-term work, as that executive you I When value tell we building every we

countdown clock we a have network. many us tells have our We to that how build out days

building we're and day. on So believe thing management we I employee's every our our think that and value focused least can we're belief, that is team my building day. value it's every team that And at I you assure

can't And value that a while. it, can't steps, you goes value bit for touch It gets feel you it, sometimes but a eventually recognized. it you get in doesn't stair can't – prove

can nationwide can on installation climb a that challenged, some our be somebody's is challenged, so were until roof that X.X operational. Then really sudden they and one and satellites we have a values us is this not with we can grow years their up and value. any for team – business. built team person in and things, which we home are we gave Erik that we do a before touch for value company system and So dispatch management then pretty hidden one all in launched complicated building of have that those satellites his had we and network And

We have scale in programming.

a relationships that most companies business we're that and satellite, we and few technology don't it people both connectivity. current growing with of that has providers And have and how one content works because and the touch that have, We be understand wireless how in and video, future value technology. that can business

have idea building that's price, or we're stock but we're value. that not our lot Lee, reflected no of whether I confident reflected I'm in So a building value.

Leon G. Cooperman

appreciate good and your luck, it. for work team's you Okay. thank hard your work. I and hard Well,

Operator

Thank you.

We members media. the will now of take questions from

from Bloomberg. ahead. go Scott from Our media comes question Moritz Please first

Scott Moritz

Yeah, great. Thanks.

I betting was to to the... pool, the one, referring, but hope just think forced call. question this won course, someone Charlie that already I M&A than But on last of has more $X pay

Charles William Ergen

questions with I the there betting any Are pool other help that permission? can you on

Scott Moritz

I specifics as wondering will get partners, usual And moved of you this to narrowband have any M&A partners to if you I'd particular? Things, on in the on cast the M&A add conversations just that, have love I'm if potential in network it. plan question, your XG, though. beyond

W. Erik Carlson

may wouldn't imagine, discussions that have. might on may not any comment you we As Scott, or I

Scott Moritz

you. Thank

W. Erik Carlson

same By I about the to if the complain kids it, too. give way, answer they my

Operator

you. I'm sorry, Shalini Journal. question next – ahead. Thank from Wall comes The Street Please from go

Shalini Ramachandran

that noticed disconnect? I subscribers I year-over-year number seemed – was Sling reason the have on question growth one what slowed curious to you would quick TV A guys. Hey, say is that and Sling

W. Erik Carlson

And, you'll Warren, that. get probably

Warren Schlichting

Yeah.

W. Erik Carlson

before Shalini, But that, congratulations on the baby.

Shalini Ramachandran

you. Thank

Warren Schlichting

Hey, Shalini, it's Warren.

growth. We with So like we a answer model. had I'd have XX% question the that. year-over-year just I our different We like guess, position. we

the a We we what so giving a know want, have and consumers not we're I think fancy think while. been and like we and model, service position. at out our promos We this unique away. there We've with

Charles William Ergen

a mean I that. to churn off add lot of might I of But OTT. people

totally is everyone it recognized I think seasonal. somewhat big one the is think don't I of factors that is by

March can you buy Madness if up. sports – So coming is a

month a and churn off. offer, free and offer. a Watch might to you buy churn to free be get particularly get it could you Somebody and able off one

one-month move can particularly and out because matter is convenience a as people around. the and come in So industry of churn high in

a be year will suicidal how dime and number player. get AT&T. go from lifetime TV – discipline. there about offers player they from probably there'll a there'll do with The never and player some and I'm People so be a capitalist going a getting paying second out smarter some kids people or are and People move for HBO multichannel college that in aren't hardware discipline. society, free you there theory to offers, in sure who thing free is to are discounted can as free could offers And there's or offers some you

them couple of I adds price. one and their saw their raised that channels You raised a think price, of

has Sony their little think I so raised and to we're starting see price, more maybe. bit a discipline

Shalini Ramachandran

Will there after or one any that? to you month, stop plans disconnect guys is to change allowing

Warren Schlichting

really – on out, by demographics onus feel And current like we plans. would broadening. are. us We I where we've value. we the puts to No the We throw that way, see provide like it the

comes an that, it's that And expectation works, so the that service with I stable. think,

I a consistent So providing stable, we focused a service, and we're think good, rewarded on for lot being it.

Charles William Ergen

across as And, to Shalini, we particular by particular of one programs a with of year meaningful the a platform combination of or throughout working way, the say, to networks. at the the programmers on have kind we're things we data do can look some have network to that, of

we with to own work extent and us, sometimes have terms will in the – ideas motivation churn aren't But that I ideas their meaningful so have have work meaningful platform. both can within they'll And and our to programmers the of a maybe short-term we the relevant. programmers with extent the things as they opinions that to the think help us, really creative that reduce

but And we can do there's there's proactively them with together. the I programmers' help can do we things We things that think do. unilaterally, can't so

Shalini Ramachandran

Thanks. Okay.

Charles William Ergen

Operator, media we have time for one more question.

Operator

from comes question next go The FierceWireless. you. Dano Thank ahead. of Mike Please

Mike Dano

bit you Thank my very network building out. that know what appreciate little about bands NB-IoT the for it. a I ask much I wanted you're to taking wanted Yes. to call. you spectrum I whether sort sell build-out. be to if and all still a whether you're also of such a this would then that would occurred, building currently spectrum in able out up spectrum transaction tie

Thomas A. Cullen

Block, is of we for I don't radios discussed, XXX both AWS-X requirements configurations the network Tom. we deployment The for Mike. of meeting be and and any publicly the opportunities Hi, have the foreclose but This will future think specific not build-out this the us. E would

Charles William Ergen

build-out Even for during the this spectrum.

Mike Dano

Right.

Charles William Ergen

your time to look you thank forward participation, and and up for quarter. the after we'll Everyone, catching next Okay.

Operator

call today. Thank conference you. this and gentlemen, does the Ladies for conclude

and may have disconnect line day. your great a You now

DISH Network (DISH) 21 Feb 182017 Q4 Earnings call transcript