DISH - Earnings call transcript Q2 2018

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Operator

Good day, and welcome to the DISH Network Corporation’s 2018 Earnings Conference Call. Today's conference is being recorded. And at this time, I would like to turn the conference over to Mr. Jason Kiser, Treasurer. Please go ahead, sir.

Jason Kiser

everybody. us joining for Thanks Schlichting. I am Cullen, CEO; our Tom and Charlie of today runs Corporate by Warren Neylon who Brian our and Ergen, Development; DISH Chairman; Sling, joined Erik Presidents Carlson, Accounting We’ve got Steve Brandon our CFO; Counsel. our General Officer; our Associate Paul Ehrhart, and Orban, Swain, Chief

Steve think Safe the of Harbor and prepared we’ll give I So Erik go remarks out way. their before and our get

So we’ll read have that. Brandon

Brandon Ehrhart

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

We this to also other from historical audio and our subject allow differ materially constitute taping and forecast. that. Statements are ask respect results uncertainties do not are factors facts that that we call historical that and/or risks, you make results not could statements during cause forward-looking to actual that our

been For SEC make more in this be discussed risks, information, that the they statements we appear. statements as to to please other should during uncertainties factors and we make refer applicable filings. call any wherever cautionary forward-looking All our understood

You consider the filings responsibility factors SEC updating. no our place we carefully should which and uncertainties not statements, in reliance and discussed undue for other assume on risks, forward-looking should

Erik Carlson

and and in as up cash a Brandon. way it that that’s opportunity with let’s us distinct us business, but present for good Thank future. to got and and the a and premium of serves small-town only not programmers the a company advantage economy. growth including opportunity, choice Internet have really the remains to we're of a in opportunity XX source a Pay-TV engine, In we've it markets, new organized business. our we've the Sling, to sets and business innovator, XG to in legacy markets, In to technology a prosperous five future America, business; as participant deliver our us it opportunities the advertisers. everyone. Erik, allows This the gives years variety developer, a It a country really it that of we a DISH, Company, In got deliver an everything you, to the an framework XXX% both DISH At delivers. the business is approximately us morning, horizon commercial value markets, good of working time out. coming of We've wireless, and take as serve

the Now wave. to set is stage underway fourth going shift our this and wireless Company's it’s to for

band industry that and up Pay-TV reflect we’re to an innovation it deeply spirit, And company Internet first flexibility. to sure entrepreneurial was digital with The our at each all with work waves as is delivering the later, disruption. again. And C innovation, to service. three speak to I’m has We then to he’ll It’s in frontier first Sling first our delivery the value television and course forced of the America And TV TES. said of live of our wireless, returning Charlie products. our and new route. XXX% DISH work America we’ll over-the-top start with rural a to TV These values, transition

have NB-IoT answer across them; a over things just subscribers been role, like online and excellent on shoring stability customer I've keeping markets. business have goal an We of acquiring before and may couple Tom in obligations, to any our set up to a turn improving phase X questions the our I disciplined track diverse focused build XXX Since here platforms; I have days And experience that remarks do you our been deliver providing on we’re of over running March profitable board. in and a we’ve and out really on Steve. meet the front. business to service the the front meet our it nationwide and weaknesses; is serve that to to XXXX will network

of Business validation announced customer we one a just is Chat for service a goal quarter, quarter, The Given for simpler, to quarter. a couple make in service tool the introducing JD past we our through for and pursue interactions seen I of differentiation couple customers that category, opportunity [indiscernible] we’ve challenges segment. that we faster believe leadership. continues and and referenced agents. operational investments the power weeks recognition we've way of take both service more that our as and our a our made wins as Last historical from ACSI we’ll In example ago, Forster. service, commitment team Apple really And natural is as cultivate past additional one

investments churn. through We also experience our customer validate

As results at historical we low QX churn are reveal, rates.

on customer bear and new focus our that remind but to quality results though service our continues us Our isn’t fruit. work

second want customers, we bringing the TV technology overall And matters, Bottom home our stay tracking are for who customers We’re internal DISH. in who want customers the choose on board actually the to profitable agent recognition line, that telling and we us provide we support we’re that but with customer playing much who metrics a of not DISH we and to first-class experience DISH right experience too value. external to are the in provide, utility are seeing terms the tighter game.

and of service. television categories rely who everyday Sling a flexibility dip stable individuals that Sling Late the a to and the on Sling couple experience introduced we their we’re choice customers; innovative who flexible, of quarter, programming experience, to for the platform. more but monthly presenting a and Sling may want side, broad TV pride on and occasional; in new an customers brings Now those in out

new to offer demand; that services. video options free all engage advertising ways and we without and users, include content; with supported and video-on-demand; those subscribe to monthly Sling a For subscription to content having

want. subscriber about of If approach; virtually there on content can Sling All-in-all, we’re promote available diverse not connected an this binary to every an status; you to with and Orange occasional, fixed a it’s become scalable content; benefits a our pricing working broadband a and wireless customer device; you're of relationship lot to a or match we you and array customers; incredibly we’re customer. offer Blue easily the is long-term Sling just is

believe we à with closer flexibility la its and our So a crave. Sling business We ideal us in brings step in this carte flexibility. there customers many to opportunities that TV that found experience new believe is new

So on weeks expect hear developments months. coming more front and to that the

over Unfortunately, on to increases news, rate the blocked because that’s DISH no are customers. like primetime seven rates. over unacceptable. declines insisted its years, today. reported not it’s Despite really Univision to on not address of bearing of still end performance. up has our it’s with have quarter. many And XX% fair really Sling though XX% customers our increase Univision quarterly dispute were Customers Latino rating Univision. accept blocked Finally, That's And that Latino at DISH to from I’d and the quite of insist the today's Univision we Latino continues to past

price we relief. So customers are offering

per of also credit will a On credit who Xst, monthly dollar will five As Spanish monthly five Latino best standalone issued packages. for month bills dollars. service Sling August TV of be DISH reflect a customers subscribe of the TV,

areas. DISH to in making air also eligible available are and free over for Latino Sling Latino the We antennas customers

a more a We our heritage customers has partner. U. been to than long I years. played in the would and serve role Univision patients. for community like XX S. they’ve their Now their thank for good probably Hispanic

to a or if tirelessly agents I’d disruption were With frontline Now working customer, remarks. to I We feel their really test I'd you're patience just situation. service our to difficult working your over for that, Those some apologize through and to Latino turn to additional like Steve concerns. appreciate Sling and Latino service and recognize the like team. customers

Steve Swain

by first assist will discuss a highlight items. you in related minute. to our will second drivers $XXX the accrual do-not-call quarter million couple Last But results I year, Erik. a to I year-over-year quarter you, negatively litigation. Thank were our of in second comparisons, impacted

this Excluding quantify million second recognition was is new to million. benefit this XXXX year, was standard, quarter. million impact quarter to of accrual, which it EBITDA in important positive revenue income And the $XX operating was $XXX.X and operating $XXX income adjusted the the

impact, income both $XXX numbers EBITDA decreased adjusted that million EBITDA and Excluding and $XXX adjusted was million operating $XX Comparing for was second down quarter million. operating XXXX was $XX quarters, income million.

quarter, improved operational and were lower Our year-over-year. by results some expense revenue driven see did improving acquisition the we In financial efficiencies. continued lower trends, revenue

stabilization DBS, This ARPU taking revenue, Increased For of June Orange quarter pleased log subscriber offset increase starting the where rolling The by note top in driven and package in churn. the line now offset customers have $X out be to at increasing we higher-priced growth expansion ARPU. the declining impact customer by partially base late TV, ad-sales plans increase. due price there a price will DISH coming from DVR's. of are this base, in in quarter. the was reflected continued Sling's the The continued cloud a dollar by such DBS announced as was Sling's quarter reflected Please grew. partially of rate. into revenue same of of and third the by higher was expansion an cord impact ARPU mix price On was packages improvement no as second add-on reflects shaving. ARPU and and customers price been about in log customers as higher well in impact price increase, total plans, ARPU.

and more disconnects. have our Univision we will rural negatively Although, on these impact by said, impasse. impacted fewer and quality had be activations in That activate higher positive churn potentially future permanent quarters customers, a continuing

Turning to expense.

both reduced DISH structure is efficiency experience, making Also, AI JD have an to and service to online due customer mentioned to initiatives decreased agents already again, in in focusing Erik was multiyear are subscribers. handling year, which by on compared is Our expense calls, lows, ranked routine us primarily are focused increase calls Business the variabilize the one flight. are some in cost Several Apple on are declining operations through by an customer last that our bots bots Interest interest. capitalized agent Power. initiatives total experience. handled experience number helping customer These These And customer team questions. the improving of we better. in by environment and Chat. including using

due potential We tax primarily to rate effective litigation to Income $XXX realized be of taxes result FTC an due action XXXX. improved capitalization accrual, as a to to year's by impacted tax securities. reform. Other related expect marketable tax decreased that the on in tax not in increase throughout and gains which addition, a unrealized negatively income rate And rate interest lower as was may this the deductible. continue payments net million of last

XXXX in last $XXX approximately making Excluding income net year's this of $XXX $XX impact post-tax accrual income and recognitions, increase quarter, adjusted $XXX million. respectively, net post-tax revenue income 'XX of the million approximately year-over-year in million and excluding litigation million was million net from and $XX adjusted the

As quarter we $X down was $XXX quarter cash second With at hand. year-over-year this free our in with on cash million pay on look Operator? general in roughly intent $XXX questions. that, we’re versus at up open flat the flow quarter, XXXX. debt, cash, of consistent And a basis the billion it to for maturity with second to we early paid ready million

Operator

question our Philip [Operator Morgan. first with from Instructions] J.P. We’ll Cusick take

Philip Cusick

Charlie, a you the network, mind. few So spectrum the on and don’t if

you you requirements weeks talk FCC NB-IoT the the Thanks. ago? the Wireless confidence the couple about letter in address build from can and network First, your fulfilling out had

Charlie Ergen

staff every this our FCC I’d with the guess We our -- into phase our we commissioner know network on and public. build-out you say and two plans, A, plan marketplace. is I met FCC that, and all

that about the that of network of now of AT&T, the the time And narrowband IoT. talking IoT and about in been Verizon, when I China been national in all is, we've also about plan very there was a around was far that has we FFC, And this since started IoT IoT years. talking the time, with ahead world you’ve business. Vodafone, skepticism a network and seen for T-Mobile an it -- two course talking companies the narrowband network high we've degree first course We it, think not first about

recognized have the same. dialogue moving The meetings, we opportunity option world the narrowband receive to goal States major been in quite a So the always while continue to meet are It's in And time in it's on and letter they've an regulators with And that that a unusual, us, have letter while every us United one advantage. their contributor to XG us. the for primarily we think of to take an they those exactly IoT build is be with in the that it’s for discussions with always a want DISH now fact number is granted forward. generous and to those out. one goal help private, was

And and we’re in network. standalone in about going very that. are networks world where standalone where is at pleased the so going XG XG is XG networks building And and and world Japan the China between a to XG hybrid incumbents build a

For going have, you’re the lead to United States have XG, standalone to XG we in think, network. to

we that's very it’s played role similar positioned And XX with years what were than very, -- with in digital. the supportive first that -- TV. And And to We channels it company important. a digital, And very to did we with go company constituents. that like so the with beams seize there. we’re XXX% did hybrid was industry DirecTV. think companies two took digitization technology to to things along answer were from one the guys, of first DISH We that. business do of opportunity digital. to long-winded the went it's spot we’re we HD, first And the FCC and major the legacy more local In of DBS XK lead all when that world a but we cable were it’s to

So that ability the and investors to where call on just is plan that that were with in we done do project the track opportunity and same progress able maybe and by, innovative, we people And satellites incumbents and we I the it's with very, people leading of face record people And as think think have technologies DISH’s it we before, launch skepticism project. another a and compete fact confident major realization going compete see -- that. disruptive corporations. the big have edge go when go against a that be made, may on direction can into of in was maybe we’ll being I you a and of that people the XG. many dedicated right turn against that some coming FCC But on as we months never we do being it is big in the us. to team And that on -- skepticism we very -- the focused to we’re for execute that to there that like many a to this be

Philip Cusick

do network to network build. that. how do DBS think With with follow-up, plan XG, rather would hybrid can XG network, IoT big got could go I massive quickly, DBS if really I wait can So start DISH, the embedded digital difference the it a building was you from time before the you’ve really a start you your and and up to network digital And others took others a the huge a build you need network? long as than to long to

Charlie Ergen

in that shift from very but apologize It low for think paradigm low real that a comes , standalone But the shift in the is December to it allows network the you're you Release today; have in so not in going about call. three XG, this and you very, sound latency, massive last which I latencies. big network of when call the the connectivity; is -- do market like allows specification hear paradigm XG XG so broadband; IoT allows to XGPP, XX things it lot to that's I Phil, may massive XXXX, allows that XG do can't out. the it

every more it; our one is looks and in just networks to in separate network one to aspect so and are that a virtualize portions network, virtualize with to day network do our not and sheet of clean like really; it position potential a of of slice -- to two also things We paper the partners customers.

Release a in huge terms with paradigm being it's huge, shift of So XG XXX% XX.

that December at means to release out go product XX, people build that. So have for comes that which

product So XXXX. sometime becomes later in available

spectrum. is our happens that thing that second uplink The

megahertz that not XXX take cleared the Let's cleared fully July is of XXXX. until broadcasters an by as example

sideline, modern -- uplink X start as until And in very can't hampered we because we spectrum we our XXXX. uplink a building hampered just a network. The So build can’t spectrum. of we’re only we’re have building today state-of-the-art that network today megahertz

a with broadband build megahertz can't You massive spectrum. uplink X of network

a have we uplink. lot but spectrum, have of downlink we corresponding So don't

So it’s XXXX to for get do ripping they to cleared. be they not of got it's will already XG together they’re we’ve everything -- get without hundreds comes not the things with that And full us the of to But And a out get hybrid are it. millions megahertz, it’s but for a customers building outstanding, to have still us to The modern cleared XXX all have. platform issues up competitors to that those in going networks, build to able start DE what network. phones. need

the So customer going much not that is latency. phone see to difference in

in things of some incumbents. that we to attractive if to a ratio we to going autonomous going from XG, to want to the cost the be network more modern benefit in to that. But lead want vehicles,, do that to we’re you're So intelligence, part aren't a we’ll big in that going lead cities, play smart virtual for need that artificial reality, and

Philip Cusick

I you no least got talk the a timing, where is, So we've for your really that can comment year? a to partner year to the down need way given nail experiment, partners, cash understand but from

Tom Cullen

will and DISH team fall on as funded deployment we’ve as can that made balance later the got start be day-in Not it day-out. it for of the call, a weeks in cash the and the this in on dedicated priority we've in sheet. the we've mentioned we’ll but progress seeing of and before, one one, lot a off phase it's number on start at good I and radios and working mentioned phase two coming And the next last here earnest

Operator

with go Jonathan Street New to next Research. We’ll Chapman

Unidentified Analyst

just saw the last This mean oppose that Friday T-Mobile in wondering is Vivek filed Sprint you was you for Jonathan. I Does the intend to this deal? I Docket. aggressively

Erik Carlson

in many it order is gives know visibility just the done continue and we’ll counsel that. by was proposed outside all, mergers filed and to merger as of other It in information our is do protective counsel that as First normal we've And the the analyze to our what to you it past. the it standard course becomes available, its outside progresses. filed with FCC, it's

Unidentified Analyst

going touching with consider XXXX way their build-out them how And chance about would that to we are of is And down are any that then can coming do potentially just you the a your then those chance you it cell they they could network? as a type One options? about two they to shut it see the phase there there two merger, all opportunities instead? to deploy those spectrum And is, you with Is of piece think sites. of the for so I two guys. working other own need out be bunch that divest meet sites. there Is any you to you XX,XXX of think

Charlie Ergen

all they they’d I One maybe well when cap may answer we in logic is We there. think they the think, out want the to obviously, bit but merge, are over still But become they’d two merger be we’re for the at marketplace. that I fundamental for why your spectrum still question issues analyzing, it see I apologize the directly. certainly I fillings little and that broader, have. answering not look a their

the the high they competitive looks would index And the second HHI very on certainly Department And cap. about that like spectrum Justice we be concerns where the the concentration, area, so be the of they have might that for -- that, high may is postpaid. and on And on are two market over both or decide as justice or which that one those markets, limits markets. prepaid standards really very suggested

that analyze stuff. we’ll so And

is too do, haven’t And about so T-Mobile get that approval could other they work just just what regulatory anti-competitive anything denied. going nothing and were option is done, T-Mobile the that then Sprint And they’d And they’ve really questions it's the and they for that do have ground what AT&T might And just what the situation I regulators stands. about. where and areas. is be talked competition middle no particularly spectrum regulators they think and that with remedies than matter to could able the have, they announced probably this merger is as and happen maybe happens where in virtually then is in it this they're you're would talking for there there’s the of attack to perhaps would in on the second that maybe that some they’re problems

other case, those be -- may them companies NBNO that's may issues. they of things for for the if so to do -- small opportunities help or opportunities And people to the maybe work there outside there solve cable people with

Unidentified Analyst

Got it. Thanks.

Erik Carlson

I mean small companies it’s wireless think, cable carriers… small I --

Operator

to next with go We’ll Piecyk BTIG. Walter

Walter Piecyk

have maybe Charlie, licenses in? so, be or And auctions? that to -- Tom, you you'd then on then a priority sheet sense for many something give of the in hit how us those the thoughts touch NB-IoT and to do C-band, translates could is like a XX? on balance maybe sites what terms you’re the bid capabilities cell you cash if March that of monthly financial to to have burn? in interested least going And CBRS at And to cash

Charlie Ergen

Walt. the one, first I will take

not, this point, We’re of at disclosing towers. number the

you’re -- as fluid as a is know the environment and of road. deployment RF that's down changing make and you we doing pretty the number towers As planning going progress

as months. I feel have earlier, in the four said than, pretty making So think and other address we’ll to I six I that we're good can’t specifically insight like progress we next meaningful

burn, far monthly the Right? we’re cash as point. this don’t at I think disclosing As Steve the

Steve Swain

not. That’s right, we’re

Walter Piecyk

ability -- us we give terms in out existing that saying ballpark at fraction feel of have, any how number makes it's because what to X,XXX like do Speakers] some on more and hard an would adds if Tom, the March the comfortable is the or is build it it XX, operator like hitting -- a of [Multiple like obviously that you you’re whatever is, it look it can its say execute to XX. about everyone was we to hitting But XX then requirement. XX,XXX March March and number

Tom Cullen

say XGPP I working NB-IoT kilometers currently that provide is standard are But XGPP with to the changing standard XXX. some of XX coverage the kilometer entertaining, we’re and would only today the to able about coverage. XXX Yes, is vendors the of

do can't every you required that -- terrestrial Now towers so urban in clutter propagation, because it the provide of the level obviously, to area, license. that and of reduces dictated because the But by forth. that number necessary of and of density signal coverage as

Charlie Ergen

I for have of think is phase need as some less you into can than assume that that denser materially in Release once one that phase applications a you two towers we network would get sure. you'll the XG XX

We have XXXX. to through billion expect on and $X $XXX between disclosed spend that we wireless

we it range it specifications towers. get the RF it for many And test, once to towers design to be many obviously matter vendors with RF is is, said to the we party you’re in third of give they a probably how have terms verify no a think accurate. working we we're then that where range. is in going design the And So could how us, that that and we're

the basis is do know we spec. And -- range so a less is we nationwide clearly because the just towers know, farther incumbents perhaps to than the don’t surely materially today have the but on we’re it's answer

Walter Piecyk

you’ve Charlie, or known been CBRS of any this And any anything… auctions, XG

Charlie Ergen

from a have years. have auction cognizant player. along a players have every on not we And has cells those spectrum small make that those major never mid-band we to to auctions is small the and frequencies incumbents their only that the macro a cell, able don't haven't our macro auctions brings going same sales. the we was been lot balance build-out won that our cells, of for of of we’re ideal than small Most one our incumbents macro up is cell interference we've least virtually different participated cash first obviously has cell recent the XG DEs a that the situation. issues. Two, the one than to for financial plinth, thought material believe perspective. mean is in a been our it's for frequency I last with auctions, lot in that And with auctions, where that's low-band at the done anything sheet we’re your spectrum something XX be on should sense been that always be have but in -- probably is things So -- a were we which We've of

Obviously, always we've a and different make us cell. gig should to frequency be thought that small It small frequencies. to C-band, and potential in have did cells for that CBRS small So to looks be certainly Verizon others cells. looked XX

is point, think good spectrums and there’s cell valid for because us really a cells, ideally strategy more we not smaller So macro valid at Most that's going as more strategy those guys which become of forward for this becoming available. for a the spectrums situated available. available is probably,

Walter Piecyk

were you've of else given facing just their see view on point of about just permanent teams could seen Is programmer longer the really because the follow-up the the at multichannel the in that comments about terms anyone quick Univision. management opening challenges been more Charlie, made open than A the it landscape DISH losing shows DISH, longer been I've its like of losing now subscribers. we the surprised that Comcast, its over is its Charter, last few -- years, It's industry. everyone kind subs, And haven't no and -- than totally sense, subscriber price value. -- no the up -- where of everyone different losing any is you're this real, and we keeps of losing it of permanent programming price drops like the literally inflection drops programming Univision is is breakdown that going makes like Cost value just the subscribers. distributors? in

Charlie Ergen

team At management This in yes. one not a little is, nothing. company answer believe have not I least is we in -- our the bit pessimistic good product. I'm the at more good permanent. reason a because relationship, the had is probably good personally is this short company, the to Univision this probably time, is And least inflection of is a It's permanency, maybe terms it's point. -- The an

not DISH way just have our and wait price increase -- to in that is happening go mad for their a we’re what a We things the it owners they peers to we stuff. penciled-in them of and DISH, is that value shifting. not budget say We’re It's customers where kind XX% happen. and the investors the which They that look programming at with fees. is and at their

years. public number they've Cup, lost was And So article which noticed is short-term document of last attraction. lost World one their viewership over this primetime we've the and in XX% several that their they the

on to most the comes quarter not we And successful, not go fault, viewers. that of actually have programming, who go is They younger from programming their -- Televisa. and caught to their wasn’t in with XX% because they Televisa let the didn't novellas somebody the somebody see value declining head in whipsawed, of pay all Mexico side. increases let they who had It’s some go they're that declining -- performing that a striking isn’t they’ll they're programming their of mean programming, there. so we they programming but value, -- doesn't let And see increase,

as tooth sometimes that's little in programming the becoming does. So a long

directly OTT. then and would their And to their in it antenna for So New they’re getting offers programming free XXX a free with that what through things that is offered on available whipsawed also offer customer. apparently And they for even then is further an side. themselves York for exasperate there’s company

directly more DISH seen greater get Yet, DISH product XXX what make the at -- to it it So what is and sell you for can materially they there’s directly. would for. pay if would asked than for that what I've than least from Sling maybe pay never and sense they’ve that

and tens reinvent used that, of to those care you, ecosystem. And number And Netflix. but So the are people make Univision today. to valuable satisfied and their what improve been backward happen customers. at just In I It do. okay. Spanish they and not they to going But words, that words, DISH become we continues to you who way have may they’re in an go directly may other offer get will have does better taken -- our going to doesn’t of a given think shift of want number customers know -- Netflix step they the one offer in thousands product a And do I've Netflix. now they one really and hard is just to York; telling going Hispanic future; we've DISH from it’s they -- find read, read is air they In maybe Majority never it's Univision is their be what put become programming. Erik may get in get leaving another get -- just to to work off they Univision of the people to Netflix. can't because now at free competitors other New and antennas given I than more may it early too be to right… who provider that Univision of product; to it the the where Univision The probably The with yourself, that want be come half we've management is antenna. XXX; the one going to -- early take pay with

Walter Piecyk

like not to And are lost the you’ve I might fair subs that most assume way you’re been subs of now of you have the it’s loosing gone, week-one. lots say that

really Univision now? by you you’re about gone If cared probably

Charlie Ergen

start lose guys that and first it week, decline. we’re cycle that on week-four probably you, four. But I than given my better. to closer experience starts probably you say between week-six the has -- our But customers it then lot to and would are probably it been a a where think you through go somewhere in six up then I peak don’t

were come pay to where think we to weeks four the where got -- more ago, you we would Univision today. willing And little Univision in a so paid less

And from have Erik we Chief heard -- they have customers don’t our team and they’ve is -- from never so change. management -- us, change, heard had have uniquely from Chief that they CEO. massive a CEO, don't Revenue Officer a new Programming, their had it’s could cycle. has never or Univision I've programming And certainly a revenue get vicious fewer so a

I that like to with. think and want relationship heard their their proceed a CEO. we’ve that never we might've doesn't And new they been customer largest sound from

it's probably why permanent. I so And that's think

they'll think okay. I be

they gotten would've us what to I the primetime one think And have save probably something the programming over been bit in with number feel bottom not they providers. line get we’ll one they’ll Hispanic to that many on that from actually they starting previously lose drop would've And revenue the been a little primetime, money is use we charged the my Cup behind they be we’ll money weeks though they’ve Hispanic to subscribers. us, number gut other Telemundo. we’ll for versus will with now, readjust that Univision half of even or so World work effect. more and used time in some And who

where between out momentum a unfortunate why I providers. they can't place that's a their the think goes. understand understand on rock with the but and it's have also hard Hispanic you the But take I And caught just it programming that I position. So they’re customer.

to we the fair And program We going we’re us. more. When the cost, that's that us attuned that short-term customer we’re ways for Hispanic have gouge even a do very to trust that to have We we be they'll other believe lower to them. negative to Hispanic them though community. at get not

we things subscription I Hispanic got other one have think them coming the with we’ve be and for we probably wireless -- dealing in that we we them because them first lose on. them to customer, a lose as won't and number may want service want but

certainly got magnitude at ratings I Comcast are raising with just price. have programmers And to in sporting this answer. pretty that's come be this more will will DISH. one isn’t the skirmish, as their of to you going start on is they programmers so price to So -- a some every will by. just issue Comcast that the not some same company, be provider going their massive going But the single Univision lowering with just think predict I the long of big to first future have -- point have is Are to has one going you are now -- the have this declining in really the not

Operator

Citi. Bazinet to We’ll next go Jason with

Jason Bazinet

you market Just paying think question buying had off prepared a your In I 'XX you’ve talked about bonds. and your the been 'XX Ergen. the remarks, Mr. bonds in for

little are concerned about that beyond bit investors a 'XX. profile maturity Some

my I spectrum to at lower you to question equity the is, your And even like rate a ground issuing consider refi getting TV to would work over the would cash maybe you so and helpful. doing help DISH box the think value? comment something, and call be lay for as debt active, Any

Charles Ergen

Jason, that, I don’t about because I think I've any have don’t talked prepared remarks.

debt And obviously our and that. can we've do certainly As of capital that. they obviously on opportunistic to do But focus, we been focus that. and there's maturities, a in think if when been things debt -- available. of are and and we that. are his steward we’re going steward we focused do be that you And we’re don’t then But there's require maturities that good doing continue I on are a Erik do know, team we’ve focused good to capital and usually

Jason Bazinet

terms But off is debt there that nothing at the limits spectrum of box? issuing in is

Charles Ergen

that learnt never ago. long I’ve I never say

look there's there's So that the -- where of in think ton company. opportunities a I opportunity

focus strength we paper DISH areas can of really, value debt and strength to ability build asset some have focus we to that’s that we be shareholders and standalone that going amazing some a really We have talk the have great assets. and maturities tremendous creation pay. on. that and we’re need our a for to focused that's sheet XG understand network need and a think what clean we And on Erik to on we in We and about on really, There's can we really focused strong maybe we side minute.

Operator

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

Marci Ryvicker

media so not goes a the analyst, my am about tower a over talk I head. teleco analyst,

it times significantly two question that pretty when I did decide some is to years. those send I indication lot to purchase? XXXX the know, Is mark network any blunt. we’ve XG your but guess you that satisfy what has marketplace their be it to did you want with message seen stock guess my what licensesAnd stock Charlie, any I has other So guess narrowband given past question, market I now? one the will going there to to shares the quite phase second over to build-out? risk a you FCC to made open the underperformed. the the isn’t in you your underperform buy relative then not

Charles Ergen

I money, buying and answer that trying I money felt I I realized a personally first could I go don't to. purchase I to the second that best that could question, of was like money where bought else DISH outside I or spend versus price that masses the much message. that the it versus -- somewhere the send Well, wasn’t Facebook, have where that something could But spend and was else EchoStar. to make

a the were a clearly But received. build-out IoT, not think From IoT questions certainly The FCC FCC as thing I for as about as that. Certainly, the But wasn't the they -- build our only should long the we it the been read to population so you about build-out. can a or have own FCC; certainly motivation So we’re just can flexible that into. there FCC, the call build-out. read today, the do. out into FCC meets meets service think come talked -- probably network, we’ve -- other the may plan that so the XX% have this personal perspective, is conclusion -- I the people current we way narrowband we build-out any invented long look about licenses. your what in -- read I time for out want know that discussions; is know know the the reach was and if -- to -- I letter may schedule accepted including I a to because IoT, license think history confident says; an is and with of network. which a our so it's the letter you at you not the we confident to the we pretty to first view I it, has network, that's we’ve working with don't something an talking of what decision a that we time that of that narrowband is don’t service, FCC, on read to IoT suggest just license build And was world the around know -- people what it's again, motivations been IoT that know for we’re not weren’t that the

that way of for detail. going are the along around kind rule FCC single things. as and don't. realization am to do incumbents every which Obviously, the for in build-out then obviously So our maybe competitors the world issue, to of on assume DISH in about in that confident And the let's the will lay has the away. hopeful out more hard the And we’ll we States player will or overhang happening we development I connectivity schedule of more I'm a we who second would have get that in those part in player what meet is the be goes that that what the come that it's DE learn that street But business farther with to overhang an hopefully, you big process. more a a see United of the a XG, as go that away. opportunity plan people major to

go not that's made five management. subscribers, we stock stock look but buy now the the decisions it's subs. that years it to noise things just path coming. we They way put get is from know return going that's else If slow, we’re OTT we you the of and is saying the so performed. probably and why a ahead wrong we now why and decisions. the need from long-winded happen just were know of stock want ago, is lot years to think stock but of going stay there’s subs, was to subs. we more But want to I years the then mean new new don’t there's as don’t a us made you at saying higher skepticism that, more coming, we then not, materially I So And hasn’t get years technologies price right what’s we five focused. money lot the five where are price we’re we’re is hey, We world same more seeing We coming. get back. street return, going everybody in say, us hey, changing, get said, three anybody We our price

to got $XX spent their to to cities speculate have idea government makes long network. in somebody our even do. So strategically go important own market, connectivity, this supportive the not might make good $XX term. wireless be a buy enter We they country subscribers serious, is it us decision. we’re have company the bigger good that did with to -- And speculating, company what a not out we is in be about and wouldn’t who better that's strategically in that chase million, XG have made to be the is weren’t And back to went went and probably it company is not who of back it billion buy probably because stock, connectivity. this seriously this been XX make well that’s in we didn't that's impact I XX, certainly going much-much that’s and not trying decided that didn't have after massive aware to trying chance is to who and -- competing place -- a it’s who now a -- a if we a good over not we has possibly a sense it FCC a that's we company and go going didn’t the think The for a government And important video investment. government

Operator

with We’ll CFRA. take next our Amobi Tuna question from

Tuna Amobi

that of free, I some trying DISH Sling understand know offering offerings. options So better the you Sling the on little your and more TV cetera. bit just between et that and I you mentioned are trade-offs flexible TV a was to those were

in it? better is better what DISH was economics improved notice you offering subscribers, there about you less working. TV in the that subs. expecting. I that seasonality you're I out we of the if actively with these Sling as offering, any did TV wondering net-adds So migrating Sling of a on little also the Are were that your get some wonder could TV, you involved. the that profile talked I'm the that’s about know in churn those you seeing of quarter Or terms seeing I to the trade-off bit of the how of quality terms But you’re this than expectation subscribers think DISH

what between and would any what's better So so for just far? you. helpful. to you're terms Thank also those trade-offs color of offerings in drivers economics That the underlying TV, help seeing understand Sling me the be the

Erik Carlson

I'll to Sling, obviously, is the a a obviously a those start with Warren I thing really over we obviously with the DISH it profile. just And discussed, it required make focused customers value Charlie And to really cetera. with urban service little a bit And price I'll profitable remarks. want few is on utility, right getting focus enhanced a for had technology, and one in geographies. the broadband. the But mean, doesn't years, like perspective, et think we've the that maybe of we the home to more you bit equation, whole as us turn service service provides to the broadband Sling. customers mean, on on a pushes strategy mentioned that's over solution, dish, when And it color less DISH in work require broadband. his I from DISH last the about

pushes it urban towards more so And profile. a that customer

to customer trying a not a Sling migrate DISH experience. We’re actively to

we’ll Although, we to offer to and the who out want things with and us if have OTT be a a try we’re that offer lot that us the an And long-term. maybe doing see you not we’ll definitely side, to can customers DISH on an provides And cord bit… profitable cutting. an pressure don’t antenna, the DISH do Sling we’re from be process. job of from other comment experience America I urban attracting migration go all but on there wants increased the you think numbers, seeing we’ll and a Sling in active a with to customer provider, round of Sling better DISH obviously, base experience Warren, churn of want

Warren Schlichting

it’s that. bundle and I first with subscribers Ron, good. seen think, something We skinny were the the we appreciate mean

we've becomes continue subscription really We with barriers pay approach. maintaining and it that per really disruptive So it we we’re a in knock be think And like relationships of maintaining smaller way the And and subscribers more user package, with continued down we building going if track. view, that. -- the right and VOD, supported the to is and to advertising of with out, that follow a comes really on consumer, customers.

Tuna Amobi

of point this Just And at color regard guys any on in the had that any and a follow-up well? initiatives, helpful quantifiable would I have know Sling traction terms there in that can you as advertising efforts us that be lately. is you you're the provide some seeing metric

Warren Schlichting

Really I attributes seen so video the got the watching we've we high business. on we’re all So and there, say of key two targeting we piece the that I somebody quality guess with the of advertising first where of front, would Sling know excited about number digital. is a of

business of it that have our takes first struck that business that advertising where but grown base have advantage we and like household with So of we've existing we've cross-platform, Sling. addressable also we only and combines -- a DBS not number we

cutting are how leave ground think just breaking we’re that I with I’ll that. at those so just And new a probably couple it examples of advertising, --

Tuna Amobi

you. Thank

Charles Ergen

to before time go for the Operator, more we have media. one we

Operator

We community. Doug question from comes [Operator of final the Credit Instructions] Mitchelson will from Our now question final analyst Suisse. analyst take our

Doug Mitchelson

Charlie. for questions of Couple

you to keep And investors anyways. some to your just your calls So to risk-free Marcy's question is and return. the and all Am that I directly options But rather at terrific sell as answered who commentary probably last build am going value reading a I hoping company ask you the know these you'll seems a few your XG sell you but keynote this now. are one, it answered I from out is spectrum There than ConnectX correctly? network the feel it maximize way open. clear quick

Charles Ergen

about XG spectrum Well, think think realizes about you've even, one. you've I don’t as a opportunity then be that our we company And much ever think analysts but selling think about than heard we of network number for I is heard network, as customer incumbents. talked standalone question is see And have I don't a a that go in that -- terms an quite future talking be might does different relevant me the this such going to bit we And that of XX we the now. years bit little the how from might different is see after long-term it’s different. what

downlink our things we shift. wait paradigm LTE rules paradigm to bigger of next shift it perspective -- paradigm course -- that's that place XG the the is all on goes We that's the always just our be news the been shift. and to we where a on this transition built -- change had than an been had so has focus took changed LTE suddenly we got our investors tough interference then We XG And H-block from that. to the much good is But to had and originally be we and And to is go while for that through tough lost has focus. and some network. patient want

Doug Mitchelson

the if the fundraising I’m it’s be have you percentage I goes I capacity how I how the that's to those to could whether talk on to two range conversations I’m hoping update of equity you and of do was that hoping funding phase equity. would think get much and trying to future your little value two who which or about holders where an be. phase think be next build-out might us the capital the as build-out, $XX with prefers, structures? understand was for you versus about possibilities And with exchange how -- on billion bit finance for give question, I just think what could going or of going of a of pick network is giving helpful. go the to you That might

Charles Ergen

of be way of in for we’ll better able from network. question a bit But little capital terms than is now. that from a there one probably there -- literally now it’s no answer I and way we need there mean of two-thirds But question a good the two-thirds we’re -- but year to a raise It’s to capital the for the build-out. XG total more realize year

do run number So might that the are be that. per structure XG What like to many, is you with to totally ability way partnerships math pop that capital attractive many, on might options it’s many, network, megahertz many of how dollar The very standalone something a the and for people you right. and long. might

fortunate a a going have; And down piece have; piece and is we into think we going piece we do that. virtual of need dollars of Doug, need knew so have; partners of were plan bikes -- what by it's IoT people artificial into reality, to of utilities, get good there different And that But we needed what business they need we have to they billions in whose business back with -- our isn't solid in knew capital that to be out that’s believe that's than we assessment. that. believed it plan more way, again next of And a we of we of throw we’re billion to going I companies and put to go work. bikes is to of to in to need lot to need no And vehicles, and help launch people but really a to great dollars for need a boil that tens a doesn't that do the there healthcare, an to, tens to solid have; billions the will of than going what dollars what industry of they piece us. there. of build; And tens when guys is of tens a of And going going need -- piece way need a us have; we’re satellites we what didn’t have we intelligence, we piece and of billions tens billions is autoimmune decade going dollars goes tens dollars they're goes need going of reality billions going of dollars have. we they of in what smart we cities, what are a dollars billions autonomous work

first start go exercise. ever took class I in money it business, to had business was I school, So to my borrow

plan. business You got going we’re have to good And a have plan. business good

plan will something good a but be be we’ll people business have that to. We attracted

Steve Swain

me around DEs megahertz Charlie the went a network pop that on per the with If clarify the is network that spectrum of Let predicated math build. the one doing the we’d we dollar DEs different the still route, in cooperation hold. was remaining build just that

Charles Ergen

It about want -- a opinion different the DEs The the the be to FCC. – had out we’re hopeful that FCC opinion the of difference talk a DE FCC. was we FCC the right. And that with had with because turned I will

that but discounts course And so correct also in a correct the in said allowing the period. hadn’t not said denying that they cure been FCC FCC the the was

points -- one realize we that is we and DEs that we The are cure were have seriously. We that of FCC taken period. the contesting now in extreme that that contesting. the has the were So that the taken FCC point

And we’ve single indication so those looked said an the at this company and not of wrong, a to one that as it of and aired this in help realized serious, trying we we were detriment, to make XG. we And structured that. be now the said And have every and another may structure made is about DEs serious objective shows our maybe right. thing everything, that trying to country that every we and leader FCC changes I and think changed qualify reserve are it courts we the has there just things why but how we’re

that hopeful that us forward. be major positive we’ll And to so be decision this And get supportive on a for we’re move and will FCC a would year. the

Operator

now from the members of take and ladies questions will [Operator And gentlemen, we Instructions]. media

comes media Bloomberg. question Moritz first Scott from with Our

Scott Moritz

as you Charlie And the on how bit can't that probably the you of network. this if network, IoT for a do you narrowband skeptical of question on use is have They bigger your convince out what a that, visions convince them legitimate is that But point are FCC options? them spectrum. airwaves?

Charles Ergen

United think hard that been guess don't material. that's about would know was But for I IoT sure seen investment IoT to that's was in -- is what what at talking probably skepticism This I've -- in States, think I be terms It has today in of FCC, and going it’s of electric are think Well, skeptical being cars. nobody given would IOT. I important. skeptical I in doing of mean be I China, that conclusion. I and was a IoT, people there the logical to but happen, when Europe, like

I issue. can't to, think not mean, for the and an I want So FCC that’s I wouldn’t IoT. speak but I think I don't

we we would that is to don't picture bigger much the comprehensive want the a have more have think -- I FCC and network.

consumers. You to consumers for it and in shareholders in and employees do used to want want our and something we spectrum manner efficient be for

massive more is get agendas. on network our you megahertz there uplink of obviously, with But both X can't So spectrum. of

that You only can't X network megahertz spectrum to clear. with of get

and the spectrum. on declare waiting FCC We’re the broadcasters

XXX leads we first this FCCs the the And be We’re including build I investors is first the phase. situation can't phase, it to and get to network DE and second think to those But about, things to cleared waiting thrilled have to because which consumers. a phase so going wait pretty years the everybody days three on to we takes up. build on happen,

to is today. that’s make as The massive reasons why be to not practical important we more is can't would it’s as be our it required we But like. license not phase first and there going going but all for massive

Erik Carlson

its coexist But battery life. with will can to low see cost, in as battery? I far just Did there It long be XG. of here little is coverage say will you I its life stay. my out. narrowband narrowband battery for low used characteristics, cases and resulting opinion, IoT as And IoT because mean

Operator

with next to Dang Sheila Reuters. go We’ll

Sheila Dang

talk added any do introduce has wondering if Sling about than that It tier gain price a past. new looks you plans subscribers you quarter have possibly in now this customers what to without TV And I’m a fewer like you’re sports? to the doing could the increased. And

Warren Schlichting

that go, category it I mentioned we What consumers? very we're come along innovation. a take providing I mean? is when we are value lines for those way said and like think focused What rising good the that are, does long-term, on of for where it we rise we mean like look And and before. talking the always that the all way does you the boats We‘ve at about competition we're the tide.

And little sure, we’re there a bit I growth well-positioned mean well think but been so a has we in and of slowdown poised.

second tier. Second question Could you that is part of ask the again? about

Unidentified Company Representative

sports was It package…

Charles Ergen

plans have for you non-sport package? Do

Warren Schlichting

No plans that for we’re announce sure. ready to

Charles Ergen

our perhaps I’d dry thing is little bit just the And go kept I go. people to new. powder don’t people a one where category think -- other we’ve add that

the of buy that cost us and -- to want it we somewhere GoDirect be stuff. you something some cheaper would wouldn’t kind else of content than And can providers that burdened like with CBS, and

there, is all everybody attractive be to replacement. different satellite going that very and to packages, maybe a are big as people do. which But some cable can goes if you And going there’s something

this don't a an industry things Sling doing wait one And goes little and very the do. area so it see of that’s bit a because team then friendly, staked plays a where choice think has to to to consumer And lot I where has consumers. other out role guys

Erik Carlson

ahead. time one we go will your interest Thank and for from right All media. you more the question, be This -- the have last everyone.

Operator

Ramachandran last And ladies and from Shalini question Street gentlemen, with we’ll our Wall Journal. take

Shalini Ramachandran

regulatory that T-Mobile pending other merger, acquiring guys happened have how broadly, media, to if On they’re any merger and would Sprint you of And during be in spectrums your in see these process. position? you interested divest the more their mergers do that telecom, anything big this forced affecting

Charles Ergen

be this we’re [Multiple what I of their way they’ll probably from else. going doing there's that logic two already wouldn’t answer But think why -- over think go to I we’re be on Speakers], want anybody And going or I focused to go -- but due spectrum to -- to will one the cap. think certainly perspective. the it because they together other. we’ll understand it’s But do through they're look areas comment their the and again. that answered We we the that on that they’re way we filings

DISH So they high DE go different our partners prepaid higher, mentioned business as for issue. you and some as between and would postpaid HHI and as have an spectrum would so as that’s places. is that in but have, would be three already concentration of an an index much times the much-much And slightly and example

that merger like and actually for to have to to it’s be on logic anti-competitive. where changes nothing indicated the they or And today. have not nothing There regulators may T-Mobile approved they've just they going but they're merger. they're the that make just the can to may So there’s past be divest accept -- do, spectrum they the there’s do can AT&T situation willing in as and it is may a the based the

attracted of middle be might there that any have any with So remedies. number of it something And be out they may can have number probably on to where the companies there gets do they in rejected. Or they things remedy them. could the that

Operator

your thank conclude conference. does today’s this for gentlemen, and participation. you Ladies We

may You now disconnect.

DISH Network (DISH) 3 Aug 182018 Q2 Earnings call transcript