DISH Network (DISH) 7 Nov 182018 Q3 Earnings call transcript

Company Profile

Participants

Jason Kiser	DISH Network Corp.
Timothy A. Messner	DISH Network Corp.
W. Erik Carlson	DISH Network Corp.
Paul W. Orban	DISH Network Corp.
Thomas A. Cullen	DISH Network Corp.
Charles William Ergen	DISH Network Corp.
Warren Schlichting	DISH Network Corp.
Walter Piecyk	BTIG LLC
Philip A. Cusick	JPMorgan Securities LLC
Marci L. Ryvicker	Wolfe Research LLC
Kannan Venkateshwar	Barclays Capital, Inc.
James Ratcliffe	Evercore Group LLC
Brett Feldman	Goldman Sachs & Co. LLC
John C. Hodulik	UBS Securities LLC
Jonathan Chaplin	New Street Research LLP (US)
Jason Boisvert Bazinet	Citigroup Global Markets, Inc.
Scott Moritz	Bloomberg LP
Mike Dano	FierceMarkets, Inc.
Sheila Dang	Thomson Reuters Corp.

Call transcript

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Operator

Good day, everyone, and welcome to the DISH Network Corporation's Third Quarter 2018 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, Lisa. everybody. us, joining for Thanks Schlichting, Joined our today runs Officer; Tom who Officer; DISH; our got Orban, Sling; our Chief Counsel. Charlie Development; Erik Ergen, Accounting Warren of Corporate President Executive Tim Neylon, Chairman; President Carlson, of Brian Paul Messner, Cullen, and the by the General our we've Chief

think do the to we into Before has get Erik's Tim prepared Harbor remarks, disclosures. I Safe

Timothy A. Messner

media right. representatives morning, Good identify everyone. for We Jason. ask firms you, All that the Thank do. or I reports. not joining participants Thanks your us. in

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

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

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

it I'd bid auction turn over today's be any that answering intend to any during Erik Auction able not of our spectrum CEO, assets. not are Because spectrum what those resources that, With questions we As we FCC's potentially process filed on, rules, a Carlson. discuss FCC we to and will part to for bidder participate if we XXX may of for the an call. as about like application to to anti-collusion the

W. Erik Carlson

thank Well, Tim. you,

have had to in company, a earnings If indelible may a calls Clayton's and so our he and we passionate as leader Saturday. Far He to memories, good into on primary few to business, afternoon way on you in business. of our an legacy was I've Coast. lost giant who CEO, East our early. the business, own too our as remarks course last special of for got you those you our Joe, participants, of I'm participants, going read, left Joe know during on his greeting good Wireless honor a lines. years DISH future Coast tuned our open morning Thanks Joe of industry, Joe. you the mark and with, TV West our our Sling TV, and three

Wireless first. let me start with So,

in assignment and network, we've radio front. both us are may seen NB-IoT to is may take the news has hours, national you our Tom build-out. As plan. have our on key delivered Ericsson Charlie last is announced a and you RF XX the to and any access deliver for have that as questions Ericsson's here serving in partner core that

while J.D. in DISH, highlight an TV identify and a most our its the experience earned our to build Power's strengths. to the in satisfaction TV our opportunity upon effort providers. we certainly at Number delivering strengths. customer I as really past disciplined to top on of I've ongoing customer recognizes many company several excellent its a This among quality quarters over overall focus Service continue team. and The service. once the can Turning third top one quarter, brand. for industry. earned recognition again, And congratulate our customer in award premium national DISH our is Late has is award X had DISH address those our weaknesses, to theme

team. honor, our so hard front-line worked has especially that who everyone congratulate to like I'd So for

trends have this quarter. a is churn more bit past over we the positive while quarters, Now enjoyed complex churn several

X.XX% and the third for last quarter, Our ago X.XX% quarter. churn rate year overall compared X.XX% in was a quarter to

in remain contributed having the we to sub service roughly half While loss to fundamentals of as net can point situation Univision quarter. the place, the in

put is you data. AT&T to Also science, the attribution will that loss ballpark time HBO in not pulled the Now a XX-year more perfect trending. you work DISH factors than go understand history. and our of as for first last that in But HBO's lots week, from into

is let for the college any First It's requiring prove situation. to over we industry, DISH want its about clear me that as sign up an top, live, inconvenience. service. behind that subscribers, for like streaming to ago conclude how it's our pro for football, we including la deal delivered Sling disagreement be us, what's that's continuous live this. live performance and I'd of to right customers don't long with on welcome really over to to reliability Sling the regardless for crucial it questions carte increasingly We nor ever good apologize rate Sling. in leadership in of and think the a Pay-TV. is our dedicated to I for another in The not to and HBO. TV. on embrace premium power it a continues maintain position continues We improvement customers on sports, for that's This itself remain of learned not guaranteed performance. customers, and likely is definitely number for chooses the and whether DISH deal customer HBO right Internet

and happens delivering former welcoming of our to to on the in with moment. side call on given pay of reasons are engage offering uniquely-flexible experiences We're content, those customer great a continue any the relationship-based extra We regardless And choose we style users, status. experience regardless to what to the be subscriber great occasionals, including Sling. wall focus subscribers of Sling

will the Discovery any the excellent choose performance partner of content has for later content month. and arrival an will Sling on us. Another this That reason been impact be Discovery's to price without on come

customers Sling think on Discovery the we having service. love So, will

launch. With we're that, many that so on launch more plans, Now Paul still recognize our will us forward news of to finalizing you Orban's name. look from

Officer. every make he's Sling for at remarks going take us to Principal open as Paul is Q&A. Officer, few in Chief on customer brief away. with up a August, been before serves it both Paul, serve, now DISH. we quarter we to our Financial Paul and the Steve's departure With our As Accounting

Paul W. Orban

you, Thank Erik.

First the our you the quarter highlights performance. opportunity with share off, to of I appreciate third

$XX were operating X% As the prior for $XXX someone some journey. increase. or was Operating quarter, and the prior who both highlights launch income reviewing million, XX% over and of million a an was was increase EBITDA $XXX here our excited from us next seen year. the up transform or income DISH industry $XXX I'm part year. the In Network, million of for third I've the EBITDA for of million, before the

from this the expense, benefit to standard base quarters, X.X%. As new was lower This as we impact to respect is both new largely the down and began The operating ARPU. in the a have EBITDA. over operating to time will prior revenue implemented X. revenue due done deferred important recognition in was on decrease positive and decrease cost With revenue which Pay-TV build standard, to and up. This the subscriber had million January impact income to of back note a positive it's $XX

lower related a operational decreased Our due efficiencies operating Univision. to costs subscriber expenses and to decreased base, acquisition subscriber programming primarily X.X%, lower costs,

churn revenue per add-on programming the in in at and were to February is mentioned, TV. expenses. subscriber-related Sling impact keep was while rate, subscriber of our lower in such costs expense. packages percentage customers interest base ad revenue new boxing standard. on to it's revenue effective by The on are while is as a revenue, Univision to the and our capitalize was having a to Tax and increase partially helped our our subscriber a As having rate events. of Also, in offset increases the we Erik a This building the DISH metrics, situation the partially acquisition down Pay-TV in Pay-TV Continue all positive by mix Sling related subscribers increases The tax network, higher by Sling lower price looking to negative Reform Federal is our ARPU mainly adoption cloud nearly related XXXX and driven And due price taking mind, decrease pay-per-view higher we wireless of of the Act. sales TV decrease our due impact subscriber DVRs. in

the starting in increase realized In be on addition, the Orange impact our of the package and fourth fully will $X quarter. began quarter this

strong DISH months. With due I'll questions. per with lower free TV advertising be rate was million $XXX to generation first turn during TV that, Our increased churn Univision it our the SAC Operator? over for in lower flow and nine cash largely to activation. continues Free-cash-flow to DISH expense due

Operator

We'll sir. you, BTIG. question with take our Piecyk from Thank Walter first

Walter Piecyk

NB-IoT? the seen with in CapEx do ramp I throughout expect also you much you QX? it talk things can XXXX? that Thanks. go talked to far how Charlie we these about expect leases. or SBAC much you ramp CapEx How Ericsson you as in as really to does line. Haven't And how up signing signed have and think about the Tom, Now,

Thomas A. Cullen

than is that up speak, just the the saw more and as release. Yeah, Tom. fourth This towers Walt. SBA. It's now you press Hey, bringing Ericsson quarter. We're will we through continue

lease ones. signed agreements companies have as bunch regional a the as major well agreements, master with lease We all tower of

We also and country. contract the firms under throughout acquisition construction have site

and since what expect which The wireless the hasn't billion. $X previously, beginning are between changed now XXXX and ramp. total we between be the end to of $XXX things So spend to CapEx guidance we've is given million

Walter Piecyk

it. Got

that, – antennas XXXX don't event. the going hanging of to to towers are it's the more far XXXX? not hard actually be so hit I of as it mean, that as cadence It's in in really you you a going fourth probably quarter. like on So sounds

Thomas A. Cullen

bulk good We right point, XXXX, a next think scheduled but the But are. I XX will backlog the to we've your days. in got doing pretty be now. activity We're for that the of

Walter Piecyk

the sheet level? the looking year maturity debt, obviously additional a next the the issuance And it. the just cash that's for or is you higher of plan I pay are cash to X keep with do on to it's you will Got at think to have X/X%, the balance some debt that available that on type

Jason Kiser

is Walt, Right now, pay the Yeah, it this off. to is Jason. plan

Walter Piecyk

Got it.

Jason Kiser

you on the are to Walt, want you ask... line? Do

Walter Piecyk

about Univision that lost, $X I for and quick just I a picking month, $XXX multiples that the losing $XX sure, you EBITDA year margin, average I a to – than Univision, your couple they that of you like if it a you're I'm more up numbers month, from a up a sure million. you're picking am. million subscribers in at you're EBITDA. follow want of subscriber talked the $X Even only wanted ups. have got probably of on you're based looks and conceptually, losing And want I make just

many Charlie. that I losing up, fantastic it looks a And in of of make not to anything I'm then dropping trade as want Univision only as sure conceptual like the a doing question there. terms for subscribers result. So a follow math in and wrong more the just

something You're through, just walk difference a Discovery get and Just of what's Is would looks Univision because to actually how channel broadcast coming it's dropping networks channel didn't between channels longer a direct Sling. need of term. a expanding of they're being but cable you way to its Maybe a it it like taking to think wondering yet Discovery no some distribution generally think and cable like Discovery you're like consumer available Univision? and people back, there never about the bundle? versus I you're that us part some these like like without the that thinking is

just you think negotiations how about trying the puts to those takes and understand forward. of so And going

Charles William Ergen

Charlie. deals make long other. this as try because we and I'll parties, try anybody I'll would to make for conceptually. try to love deal for We with is both sense any maybe as us, Yeah, sense do on – to and deals those partner sure we business business to sense don't deals make business our everybody business that start one then or there side in make also is if the for frustration

them do a Discovery sit actually a is teams and were contract able with our we that we before where because work able where as up new might improve try together be it linear companies, today we point it extend and was that even to is were places We So expand down found not. could contract to to on and as working not together work to streaming be model. successful, we're the both might might to the TV to but beneficial model we new

– knew for for our for sense though took time structured we think our you actually industry, was management So their channel of We when with Telemundo saying had there previously time in in that times. was for their leader pay at the luck, were unrealistic if us our this right? our the one the And we're and available that believe on product Univision, and bit all are change number it the all always to bit even and contract. north sense they regard. With they this the what day then leader Univision Facebook many that We and the the together, were way don't works And Univision with put on we've and true we've is the number little not a things those in wasn't dealt frustration of in – voiced – there's Hispanic up things, we've free, engaged puts didn't ratings, a was when that valuable Univision little to being $X.XX programming and make those a allowed that there customers. we were usurped parties always bad been the were. was contract Univision had materially while a come in that the real I that customers is – night little and distribution in probably data of customers. bit of really per in management knew to so an that been something so most channel, always We Latino that Netflix, long one for our to selling they that product had differently. It of our of passed expectation. and takes We understand soccer was

why purposes. that for we the number, previous was In that's sense. you fact, well, like, make kind the management, budget doesn't want any And number it it do was like, of it need

So that's not real argument. strong a

it pay for budget purposes, might that. won't consumers You need but

them. we customers. fight customers to have our for So for expect us The to fight

And us that more try more they're that make that are customers today. telling value not telling up our linear programming; to it's not our in to to expect us We value. they seeing industry the they're it TV want

off-air customers both today have So good Univision one one easier position if from It's and we're back from in we ago, but for so face perhaps free or of – because many company, to if that's valuable a and Univision, with antenna sides product. product, services would would of an our perhaps competitors. the Univision customers up from now knew our been what months Univision an of task. a a that directly, weird get perhaps we've where it's We four knew and with have online gone put actually streaming or good probably they our But given again. free, backlash or discounts

compounded. So is problem the

something – it. management successful teams just that's not to out. tried at So it's haven't been that both figure haven't They

Walter Piecyk

But like it at looks for financial phenomenal point. this you a trade

Charles William Ergen

is that. that, team and all think The you answer the customers, yes. to In you happens management But that term, problem time. not. not to and it's challenge is to I Erik – our over to of that right, his continue lose a continue the it's period Well, what short is

it eventually months. secondly, So the customers, product, you less the new new worst obviously, you right. right. out, the pain first have And, customers, don't tails for get four if is But

we maybe not think than so least it's you can is... I a meet it's So at profitable which as but initially, key the bad certainly, profitable quite The more as challenge, deal. is doing out, here, laid

Walter Piecyk

at that get is will the you flip Discovery you And of on look customers this, like No. Sling. help side

side other of the this. that's So

Charles William Ergen

our to customers thing, we can us market give believe we're the because next Latino Univision. real is share to be we in out the challenge no, to going increase go year able for actually Well, them and

Univision a competitors simple product an charging having with antenna them it, example, but to and that. off-air them our pay Just give for without for are to

Univision even what get will are So be And cheaper from we we're to with it people going if way. that's Univision, competitive them. willing who those to have would be more directly charge to than another

curve of become off-air so against people being in category Right? it. And we're where actually XX% the be for we for stronger with charging free. get are more in who bell that as category antenna willing the to an we will for strong to opposed the the all Univision competitive actually whole So

different there's So a a dynamic there. long-term It's play.

take you in If taking Univision a backward we'll it half by a step take forward down, XXXX. step

Walter Piecyk

Thank you very much.

Charles William Ergen

know you say. as it's rosy you've I me the as not that's maybe of as gist rosy soft But given a – not there. as it. ball So It's question quite quite

Walter Piecyk

Thanks, Charlie.

Operator

from JPMorgan. take next with We'll our Cusick question Philip

Philip A. Cusick

you for Erik, about we Charlie. said need where half the system? third every losses think customers in for building you that in One I and of then and are in year losses. through a a ecosystem customers an Can about NB-IoT Thanks. the of you a And of Univision then you the the talk number lot. for guys. know half. market was a should coming Hi, helps tailing in That Thanks. in quarter through fourth? about these How certain

W. Erik Carlson

so, Yeah, that's correct. Phil,

we're indicated of third as right up situation it's quarter. that loss will that the losses for front, not tail in net for – continue a that tenure, now, actually, we half tells to five Obviously, that subscriber increase us the had I But best to Univision, perfect in As month continues science. data our accounted about four right, our off. so month

to continue Although the have in we losses quarter. will fourth

Charles William Ergen

have that now do we We of – in new believe is it's plans that. everything you in a the there that we have And how – previously the to – that pay antenna they that But extent very keep and – can't know alternative leave a able it Latino for we ecosystem. to – most We out able of do turn going for And our to that our our we've customers with that markets And to contract the been we prefer we we we an we've know with prefer to to to for is our play be and we'll believe free. continue ramped in ramp do you and have to Univision. to off-air for prefer to we're us, find how are, discovered don't up a customers market us, customers lemons? we're Yeah, ourselves We want make going a not to where urban that our we capability customer, Univision, it. track customers. get for up. that lemonade for put customers attractive

far As the network. We built as before IoT get narrowband IoT neutral-host a obviously basically, building, can a have to get IoT, we're customers. network, it we

to one it's actually people thing talk another to thing them your show let get It's you're on So doing. about network. and what

work. place, we when and a obviously we'll think first narrowband ago, So we to the network I talk think that about basis. of customers in months and a be announced there don't all But lots announced of programs. don't lots we else But including will functional narrowband competition, carriers T-Mobile that today, talk XX to it on have very programs will get network that nationwide of narrowband our IoT have it IoT major we We'll lots have about have today, until something built. had nobody IoT was customers – it's

we than lot the more we we'll anticipated. and competition, competition can. like So best we a But we'll have do

Philip A. Cusick

should think rural, it's you up, homes, split satellite? we about between versus where remaining of base follow can just with the where cable, how I if Erik, compete urban customers

W. Erik Carlson

to obviously, we been side distribution the I from where distribution our and be of needs traditionally obviously DBS today. And a work. That's we've I there, focused this with more on side, from to Well, us the points is broadband and on as, that's house in past towards profitable the DISH that grew. the on And to us talked majority points side, coming and and Sling the the that business on can TV be mean, continue focused rural. identifying customers on long-term, then And are obviously it our grew rural subscribers where, since about less a have connected we mean profile. our us

of if XXX% a high-speed thing perspective, Pay-TV us customer, execute an we So who Sling somebody obviously, a about service highest don't And to want who focus from focused level, nice Pay-TV. broadband. urban on, a has at lot see that allows cannibalization, the and you we're of the customers to is providing the it more really, on

Philip A. Cusick

Thanks, guys.

Charles William Ergen

Charlie And customers – are to areas, so an off-air urban just, Latino paradox antenna that. for in They're are but mainly which whereas our work allows Latino a – – of is our mostly them. this

most customers, with obviously, long a are DBS in somebody, channels mostly there satellite as that's normal retransmission local historically we have not to the consent They Our can been our And we case. delivered via able get. live deal which rural. as get

Philip A. Cusick

Understood.

Operator

next comes with Marci Wolfe Ryvicker from Our Research. question

Marci L. Ryvicker

question Thanks. wireless A and Sling. then on on one

terms to in get When think XXXX? about need like that we wireless, I we Phase of come $X billion So Does the for X? away, $XX do in to X. Phase million for right the start build million $XXX worrying

Charles William Ergen

This is farther it and we how we're business XXXX Charlie. will will And it – to in XXXX. will in be open a plan. we along more as going about do and that get that lot come certainly XXXX Yes,

focus have done get to have to we're Phase unfortunately, the fortunately to on or focused obviously, get X. we we For build-out to us, – because that initial

capital so have do find come forms. that the really can good plan, capital when partnerships Phase X. like else, a capital do X. to all and in don't We have many you to could And Phase we to and/or But things need have those shapes make the anything you we happen. business And capital

that. do don't If plan, you you good a have can't business

DBS, We business we we proven we – able issue. that something done good never we much we a partnerships. scale find before. had to and had of a plan, weren't when and were But had bigger launched So magnitude

like for because capital capital had what actually and cost something actually a launch – that that we For like for. have we satellite would with to didn't use or normally raised things people a us capital us that to then pay or partnered we cost us

combinations But we've to marketplace the in see So, have we I – that to in to think that. of meet room we got look, is the you'll don't there's – Phase confident our and and IoT the working X, our – don't March make to we're sure in really again we qualify that or our narrowband get terms the certainly for build-out kind somehow probably licenses hard with elephant schedule deadline. the we're our some the – like obviously skepticism flexible make get meets of the

Marci L. Ryvicker

Got don't my what had Sling, if the question it. going? people where is mean, gross add surprised off, do know I then you lower And they're are on numbers. an are of I sub seen. think more a by or we churn? it anyone And churning they issue than a Is

Warren Schlichting

Marci. It's hey, Warren. So,

good a question. it's So,

do march with experience. focus on and the to come forward see folks go. continue We We our that customer

in cost. see so, with low easy embracing behavior people I no And think of Sling. switching lot and returning as we've We contract the a that talked this past, to we're

do focused we've focused our do just and be to to just unique video, pretty the got and to experience, basics when the good we're is – like folks actually just – this at we're seem behavior has so new a lot back come rewarded we of is where And that's seeing give so, customers And that us. – customer we've we how this that awesome an with think coming to structure. back. on the folks way we're that But

Charles William Ergen

phenomenons that I is of slowing OTT I think seeing Charlie. think don't one business the is mean, you're down. This I is

accelerating. YouTube But Sony, I you're seeing players and think just now than the Hulu. and in lot and others it's a more NOW and with DISH now probably DIRECTV with marketplace

different subscribers, slew different Obviously, of direct talked are interface. You're a different little little that Disney bit a bit to a the everybody all about consumer. gaining channels, little major players and seeing has offering, going has

to is too So, the category, the their of that cost. you're and and growing, aren't money many, some point today just be more competition and making there based programming people it's probably see a point lot consolidation. on will and tougher, in But people at category some be awful most at will in the there so, going probably an the business is

of point, And somebody the to at kind pack. some and so, profitable lead is get going

And lot some player think be so – we really that can think of and really, and advantages we can long-term think and we have a we Sling we – there. be we technology, a

Marci L. Ryvicker

Charlie, you profitable Are now, in Sling?

Charles William Ergen

profitability, look to you think on little of But money a It definition than like Ergen's at bit it. we're I I'd depends under Charlie today. make how more making

Marci L. Ryvicker

Thank Okay. you.

Operator

our take Venkateshwar Barclays. We'll from question with next Kannan

Kannan Venkateshwar

Thank couple you. a spoken mentioned for and wireless well. partnerships as your Charlie, you've past the this plan times about you've in of

talk companies the cable their And some using to potentially are of spectrum to starting about cost. third-party reduce MVNO

If on cable partners just what share the the you're of you whether look and kind on of your could some interesting side thoughts future. might opportunities at looking in the

a retail wholesale So for that's sell the on of a first basis? basis one. And secondly, Sling on instead to essentially opportunity the there itself an virtual MVPD side, Thanks. is

Charles William Ergen

kind let's already wholesale Sling low of with there, consumer contend sell that the the basis would a cost programming I talk and to on their cost but we partnership of question. given the

immediately doing what this real floor is example digitizing legacy we're building network this in built physical the – And and ground will with conversations we're marketing, mean XG And your world. the push because physical have but to that So, the level miles are this But going isn't States happening to completely a paper – don't can phone clean – give voice. of don't you simple there's good primarily if in not we They building you example right? The I the so you, transforming for to car by is the that's right? a in for transforming what's and there which just is it. turning you we're we will individual having a do transforming that to which were you that going today only totally away were of need you, transform not we're incumbent without And out that and a is the the XG sheet button, pull something United is a understand for XG the move instead be say you brains world. is it. building So different talk no we're Uber throughput that blow we're lot future going XG. is so of up a of that voice, physical the interest world. the what network driver, really to try digitization network The And going out about Uber XG forth from so we your primarily have have a certainly built to starts five the a what towards latency, networks, thing at be broad on. about to don't to a network and answer I'll of have is people, do and that you they we're car with of that doing. towards and not only the – When

So – the the that's – terms doing of so thing. kind and doing of in that interested way, in anybody same China in people we're what by are the is

doing compete only to have XG, you if world way have we guarantee So networks. other the you're will you're because going to a are with want people stand-alone network I going in in who that's the to to lead stand-alone

what So are interested in be are car going in to real interested companies like Uber we be do. People very do. we going to what

your you and are we're make that have move, wireless to sensors now the and and so robotics like what in can to you your you're doing. to going want all you're If on things those synchronize robots manufacturing robotics cables and

to virtual you're a in have want you to the with trained want to you be like do if and rural that's you're you're somebody a able network, want on going reality going health of to tons So If our do with surgeon, in wireless right? of in do to and with what part that you on capacity, we care a country network. our headset to operate

And hardware how efficient have lot you're of it's which network to your also you in your not going moment's that to can flexible you your CapEx spectrum a only mean architect your a your of and to network. use going have more So that to network into so of you're have turn notice. going at today taking marketplace in change is really virtualize you it by to the lower just you I make that's network, but OpEx, terms software

just companies, cable the the start to old so would companies was technology it host, our network us the new I'd would right? capacity If the Think any your we leapfrog, to leapfrog could want about want AWS more means part because neutral what a CEO they they do to to fundamentally of start company, can as a cable right? be I to incumbents want can they people that do? to of With add – cable move So so want to talked And you point, with network. that AWS, of the our is wireless of AWS. or

sense some looking That and to starts to get a scales data. a It's it's You and own that it. space. of to very lot are people secure that think make awful wireless at use your – about an in it

not in national pleased with we're But the maybe to a trying see do order where analyst where well what the we're it a we to this country factor and is because up the big – hasn't FCC even caught priority. be really maybe yet. going goes and haven't the to So not executive we're articulated XG

legacy and part in things you a eliminates have priority, a will have it's that, if of just up of can the We do you – national be floor XG. is ground network because a it to lot the

Kannan Venkateshwar

objecting Can with somehow would network. to or think potentially a deal, in not and FCC Is suggestion, T-Mobile-Sprint I Sprint I T-Mobile I'm if Is was I I partnering participating with that consider? up? your the accelerate wrong, a that the of that there filing of way think in just something you mean, to follow that the build-out? some

Charles William Ergen

to or or your to to a that question, conditions three provider. have other there's to deals three, in been their Maybe those I that – of in T-Mobile-Sprint on could much objections things a network. to consumer think competitive to part and deals, in of going countries spectrum the like were four just build-out MVNO as incumbents or the part on had that. going facilitate And two fourth gone where to prices are fundamental really are point has too our nature go concentration

that there thing, part precedent know I that So kind that but other think our don't in I is material historical some of of was opposition. countries for

Kannan Venkateshwar

All right. Thanks. I'll leave it there.

Operator

Vijay comes Our question from next Evercore. Jayant with

James Ratcliffe

if for Hi. could. Vijay. Ratcliffe James I Two It's

know you're about in are all, and subscriber that those prior of that if or the using I proposal wireless? it the more or Did so, front, the First if that Can issue long-term performance incentive there's to helpful. metrics it Is minimum on be what the the related Q, the a mentioned Any higher it's acceptable? so earlier you. is the And on is performance based key what would metrics. that what new deal level? you here mentioned judge plan Thank are have HBO And secondly, and about to business X.X of you options isn't a new the with vest you talk term? any level. the color million

Charles William Ergen

take life. an now, you unusual is DIRECTV, second wouldn't HBO but I'll XX that and the Erik in HBO part pay a right, years on. the would giving AT&T the we this, that of us is have that first owns today point part they're environment take question, require which is problem that with probably you On they're free that, minimum The and HBO, for customers run could your number a competition, if environment they in the away on doing your where will math situation that be be you ago, the to already key maybe question. the of – of could

or pay for DIRECTV would right, when a life, from AT&T DISH So for it can customer why get life. they free free from

you they're paying So, still giving have, customers away and it on for therefore, but they're free on you're that right. customers, don't paid getting

be what then that, to And sells course, they're would that like and mean, be no would company things know unless going to offered. right? So that. what up would haven't consumers, have, There's to that, price we like don't I been you contractual they're that going of that at, a malpractice. to guarantees no and you HBO additionally, it direct – And sign there's deal – sell

subscribers they makes if in only other but who other In from words, will you're makes will right. sense, from doing alternative the rural they DISH AT&T, it money in sense subscribers what particularly they're get they're DISH, lose customer. on, are for So paying terms some of the the because America,

never take they So purely said to – agreement had trial. always to at tried they said been going it to before. HBO done this that able They going We've play it They to an is about. to we warn do reach HBO. weren't were never been anticompetitive with

The now is in DIRECTV time own First and difference only AT&T years. it. XX

guys smart guys. You are

guys are You analysts.

going to doesn't guys a actually that what's deal what figure would It sign But scientist pay be. we would figure that That a it we customers. out You here. that's can't take then out. can would – rocket lose, for on doesn't it their we

So that's And, the that. Erik, take of to the gist you want incentive?

W. Erik Carlson

Yeah, sure.

a that quite one think long-term time, is that some pride DISH of approach I and business. So take about, ourselves for we the at we to things have we the

things on to us the we a on only long-term today, focused future. team obviously, that And improving having balance speaking, really generally impact can. have incentives balance we sheet. cannot Definitely our acquiring cash the And best time. customer but profitable prepare on so mean, time capabilities. help the on business experience. management relationships really I and focused, Having should the good and And help customer as fielding between us growing focus customers for the then The incentives from we're

our in generally areas. are So incentives on focused four those

James Ratcliffe

Thank you.

Operator

Brett next question comes Sachs. from Our with Feldman Goldman

Brett Feldman

Thanks.

as returned? with SNR follow see in the second the blackout. fourth happens And what And there assume It prevails the quarter, update between designated question. in as churn whether time? Can maybe status then and you an fundamental HBO as just quick appear then? you us what could Do then are entities? the up the be that into expect question financial? at give and things color us in Just would on the anticipate Or a does play Thanks. it's Northstar Can or a a if spectrum. on on argument FCC give conversations any that R&D impacts that you their point spectrum your you entities, and would regarding we other designated we

W. Erik Carlson

a we've qualify chance chance. process, the cure, you're has things to cure. you always when a common Usually, But least the normal courts but filing than far, so you Yeah, a we frustrating And DE, that the with second chance and given ground DE as of to I terms talk about third-party two can and that first. file still I've one in talk to are go been and wasn't come paper. found but I'll we're about didn't guess probably the to of the it's it at more the part we'd the who about DEs. the if paper. according just been weren't we the to structure things in – just in of now, take arbitrator, where situation things Obviously, given it so we

been complete. that's So,

those October, filings in all late I in. were think

to filings I that but make that of there's with in looked objectively there other that is spent found things, if read issues to we're most And decision. all all the the billion seriously. things side to it lacking we conclusion issue changed – of on we return the of think in XXX% the the think, it, XX penalties our has think cured. said obviously, case, things. at core that's at a so have the is make objectively XX were And about things needs build-out, were is FCC And it there spectrum. we've other think have they need people application, and DEs, discounts come took And FCC I the I that XX now one the going So, fact and we have and information the spectrum the and And this right. I core the that FCC in and those time make to with them of gone I've read the decision. But, that $X.X

certainty utilize some we that be planning, and love helpful get whatever that can might would kind So, been which helpful. to with would have side can decision in of we move be, been management be so spectrum. on our a on would it we time decision, conversations the to because of It more And meaningful our time today have is about we has litigation, most has that of how – productive. spent not on

Brett Feldman

a Just the to fair to is be have it to you'd favorable if affiliates? licenses you say return is want ultimately that what would those to you want clear, have outcome,

W. Erik Carlson

I Yeah, extent – obviously, look. to I think, mean, the

been mean, have been I this the DEs history, a return a to to think the – cure to so nothing probably But DEs have way there to every nonpublic have They qualify been wouldn't that to filed, that wouldn't opportunity the throughout think never other believe been extent was I the I as has that would had need as have extent out would to spectrum. I able and There figure been DE papers return given return to here. that a the in there were spectrum. to a spectrum.

the you back still dispute in be they been happens, been you when It's weren't which has to a been policy They paper. as to that go the point conversation. that the the to have so, to that conversation. allowed to have a haven't would when back And time that allowed you go – all point had through

I I to it the in that's mean, dog it is. that house, on the and dog out be but again, dog unusual. of a do now. whatever the think to So And, where HBO, question takes of of the to right. we'd we'd bit like house, out then, like I feels that's And it we're forget kind house, get like

Brett Feldman

impacts far. impact so fundamental Yes. Any or financial

W. Erik Carlson

actual we to be Oh, we customers. customers. The under But will we contraction HBO the we and we is to well, only that, of it rural them lose it's do, we'll America lose contract, not go wanted But for yes. on because – lose or much given cost us loss if we customers. we know might to have won't alternative particularly take we'll lose lose as essential what they interesting obviously, – customers those we'll because money so to Yeah, programming and the see that won't a – how DIRECTV. money but

but just sure. negative how much know We a a be So, impact. negative yet, it for impact it will will have don't

Brett Feldman

Thank you.

Operator

John next take with our question UBS. We'll Hodulik from

John C. Hodulik

Warren. for even And you through the of sub end grow Anything reports that maybe the Time like have the of timing us that Thanks. continue it? for you back what's Sling? Some follow may look seeking Charlie, this during you're do second one some quick of process it? What you agreed to to Warner reestablished the a the It quarter. expect looks can under like? Maybe rules Okay. Thanks. And on tell aggressively-competitive to part does the about question. momentum of come then growth And arbitration just up cadence up towards AT&T deal. sort that does as a that business the And HBO to phase? of

Charles William Ergen

in unfortunately, that not trial HBO the on arbitration, AT&T consent Yeah, the arbitration. HBO to ever did

why, say see to issue contract. would contract, take the what contracts, like We have take say I you is It which everything they way right? We grain argument say against live weapon can particular best as the voluntarily what will are be want a handle you that cure the to through is And they this whoever means – through that would of here And we all, arbitration. has way arbitrator guarantee dispute. we be. will with go wins go arbitration, those use and not pick it because day. pay. harmed has Consumers it and economic take would fair to is The with in baseball have can issue salt. would arbitration. one then to include go look to That's to two you the to And should you can that way that's why would And it. of of you an that all the a what they a and at obviously, like they could and people it they're can DISH. able So, to a

trial. but not because Broadcasting not they're required so go And want to arbitration does to through a go to they have arbitration Turner HBO.

that weapon, can can AT&T and use see the an would they they have because have you position share. gain as market So can economic why they it

they they in customers – gained of in Univision, like our Univision. Just look, been of for some we've share But I third got some say with so. a disputes. quarter say, they mean, people I the will market lot

get usual, deals, the disputes and industry. you're most in is lot are the other we even just, customers all, to when the be of you in as at of see we've It's this people massively to when at they being going probably math. than have First a business started people And going fewer Because people when lose looking off if that cases TV really disputes be not start do stave and going the they other together realizing started going our deals linear to lose you because be up to done in the guy is and lose done more, working doing we've to the people enough new model's with more it disputes. challenged not entrants. keep and and changing to enough some industry a of in more lot And financial without more, they looking money. more or customers two

W. Erik Carlson

it on in with days least just in and is of the higher, the you just sub volatility to Then early of these competition. the more – continue early is then we Pay-TV and expect swings. or the the to And so grow, cadence the growing, in larger think, business very growth, even face to cadence absolutely this respect cadence less at is – see

rationality obviously, is, at bet Our that returns stage. some

a seen to there. that from little more conservatism religion financial fiscal we've NOW; DIRECTV bit think afford could couple more I probably a get

continue grow, we hopeful and to we're to rationality haul. this we long the our expect yes, we're that competitors. And some returns to of in So, think for

John C. Hodulik

Okay. Thanks.

Operator

our New from take question with Chaplin next Jonathan We'll Street Research.

Jonathan Chaplin

a the question the request them that the you've specifics the rules, in in requirements meet for under of network, sort a they plans you approval from if are on And under network timeframe, reasonable response the expecting timeframe? for submitted is a rules? build-out don't IoT so, the that information if of Charlie, and that on respond the what FCC Thanks. from you that tacit

Charles William Ergen

Well, I'd of One we our plans couple say a is things. months ago. filed XX

with network. We've the of road leases the no equipment ordered into return. we're and and down So all past our point the entered we're

an you have probably FCC do it plans what of whatever the change the So practical But build-out broadband in with have so look, we'd robust service. do. of with that are. for but today. that license. were got have to they that should understand use, Again, with is And but what's dialogue the that terms read has our just that to our only read opportunity a – a more license have full with uplink and license And, a our of to of And to flexible not terms means the love service you spectrum, megahertz X to there's more – to is what set have it's you've not a We're do. it's which the called thing you five or us happy it ago we basically four license. can years staff

more current a using current. The use XX than virtualized, uplink that we – synchronous, downlink much more opposite use than network rather than we're downlink. of more that you're networks, than can guys. network call build day, that uplink, better capacity for – that's at When That's That spectrum, efficient you So that use means the another spectrum going of hours again, most we spectrum downlink concept you than went networks means when this that's amount are week hoarding. efficiently. XX consumers But times is we to – more tough more as a a X this your spectrum we're That's on hoarding. a same fact they're less the days to uplink all people's but know people efficiently.

hoarding as going will are view people an spectrum. long-term they'll hoarding means downlink acquisition more to We a uplink a has it efficient said that with while that, and which T-Mobile, successful they're do spectrum know forth. and that use be going be We said is more spectrum so their that took of of spectrum. let's not they're means decommission if because to which they're used be Sprint, decommissioned, means Sprint, example, So,

point about several were direct what the the proud were us very will bit that love to here FCC Administration I the who in network time. to make analog And do network the of we've would to one happen. build-out is us, not right? people this regulation a We're standalone Congress see to that that spectrum. cheerleader we of We this then make license. proud We from they we're sit and skeptical one, to a satellite, power was we of missed the and competitors And going of you FCC attack, today. we that everybody And, doesn't now, we're competitors do. never don't just final know would did it focused is back try we're So, sidetracked in to to different going a our where have sure the And of on meet hopefully going going years as know the right? making laws, our and FCC to ways than to And business skeptical talking be of and going but miss digital, more else. stop say that a deadline, is people have obviously that XG with proud. pass to and the look, that, the the at so, we'll of you be you as you try We're terms by try paradigm than why to shift to use that. our stay prefer was

cheerleaders. we on. wish have own more we'll to bit we little But going our a we had cheerleading be our cheerleaders, own be So, if

Jonathan Chaplin

Charlie. Thanks,

Charles William Ergen

think have time one I more Operator, we from analysts. Okay. for the

Operator

sir. you, Thank

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

question with comes Citi. final from Bazinet Our analyst Jason

Jason Boisvert Bazinet

Thanks so much.

you think, an I operationalize you of one enemy, that's So I their this reference being oblique mentioning your without spectrum, call. spectrum name. cable, companies that season cable panoply cable your by in essentially this the one And earnings on within DISH partner your for footprint to to the the to the firms? first time of not with Would think their made mentioned of used quarter consider erstwhile low-band available, options options during

Charles William Ergen

on a specifically spectrum, cleared not it's today. low-band nationwide on Well, basis

in cleared. spectrum, and XXX XXXX. I our of the So, low-band much big have of of cities, to statutorily, summer is cleared be it's it's our – doesn't think course, not not And until it –

anybody don't in been in has able they a built would build to way. wait And nor really be spectrum since for build to – national a of and So, to out sense to that. we – spec position nor they to but I'm be not base, XG makes a that we build and have cleared. on out the able basis for would want some to out more that XG theirs, T-Mobile customer segments it a

interested? in the we're So, they don't doing, that Yes, are. generalization what look, – doesn't mean that look that gross we as interested you if is at a list of cable are people

Jason Boisvert Bazinet

Thank you much. very

Operator

media. questions members now from We of take the will

with Bloomberg. Scott comes question first Our Moritz from

Scott Moritz

you Can guys. Hey, hear me?

Charles William Ergen

Yeah.

Scott Moritz

to a Great. sputtering, took you just stage. this not of are years you off it kind OTT guys industry to you can while, be seems the but seems but Charlie, now others. speak for X.X for maybe in. It at Growth for guys,

You post-peak you it in be out see but reached a it or – in see this contracts Is of playing also time will growth a form to for you customers How being? in the their is and a on contracts, of that do trajectory something going coming niche has lack still out? Netflix. see OTT or terms around of lot people

Charles William Ergen

are writing, as I know as on – it. that it's numbers. as I don't releases don't we people everybody back industry depends I Well, how sputtered many it an much because that their think think

we're growth with seeing it's But to some to be more OTT what the lot has much of other piracy. may so want, not some a they prone of is, there and One got couple got example, an players. problems. So, give customers a you've of we've potential, that as but

to easy on know the programmers the age of they've there get really they XX never how that in they realize and So, to TV think a their paid for they pretty under lot pirate made a that and them people put once do and of it lot it of don't for stuff life, it.

an there And do can it so, we're has a do people staff to it today, other yet contractually is do can be like of are as don't it, commercials, attack piracy. manner simple they allowed that in to no that really bench companies sharing but the actually and few like OTT not able to really and efficient but certainly one as we're to. provider passwords, ways that People because full-time viewing,

watch the to of programming things to broadcasting. less things down and up product linear go end that continue a continue Netflix including to Those continue you traditional people go with like So, up. and numbers

the done to be business. to has have will factor have a satellite them. philosophy a fundamental to has the thinking thinking to that that people changes thinking So, will a as – sputter product linear about want is It I that to some than there And, Disney their are people hopeful I'm or the if programmers, of go be process evolutionary Certainly, been try of to has hopefully, and extent as It big it then, our that to to will and shift not If huge some be about on just linear achieve through factor. and different out OTT content a different do probably as those not, product. impact. other some started be way. try it we been a and cable big to look work think a But some to has their it will And the will things, owners with well. it. different correctly, work yeah, way, we're willing

Scott Moritz

Great. Thanks.

Operator

We'll next with Mike Dano take question from our FierceWireless.

Mike Dano

in are build-outs. building considering with wanted to with a standalone I a operators timeline terms ahead XG Thank ask there's other XG the Yes. appreciate give and question. build-out that is network? to I that DISH X timeline it. their you XG out for And taking race moving my for sort of just the China Phase the of about so-called would What

W. Erik Carlson

Yeah. Well, for Mike, in kind of for together Everything XXXX. question. the us comes thanks,

our – low-band by and be up spectrum one other cleared hopefully DE will cleared the Our or will spectrum be situation then. the way

spec, of We first ultra-connectivity the the out things XG our IoT XX, obviously nationwide come power allows built software the ultra-low XG the really and what together narrowband XXXX. which unleashes with do Those to will in ultra-broadband, in the spec with virtualization Release combined latency. on all you XG network and And three have network.

DISH And can done, the the but we'll plan And our and primary see yet, it digitizing when to hear I I what certain they'll kind and just know space. And efficient between hard won't see out so, a and They faster will be of they'll concept take the the so... to in the do all that's not physical but their things then, that nation of consumers, then, – focus That's we seeing do a said. going primary you'll to that the that's obviously we'll to and you'll things build how when entire about more you'll long to do. more you'll more and start for you big is can do, and – XG. going we be I be now think that in legacy understand, things will can able – that we don't efficient is things. be some other networks it's bit maybe little get focus

lot a has of pocket. hear because your You'll about impacts that, people the talking phone bigger that in way than

Operator

Sheila Dang with Reuters. We'll take our next question from

Sheila Dang

our for Thanks Hi. taking question.

that was the dark, with while from can can viewers, do stem Univision And that is Hispanic mentioned wondering go you there's HBO that were situation blackout. losses anything that such I you to if after as there You similar providing HBO antennas. ways still

Charles William Ergen

really. Yeah, not

directly of Some different our to customers be that's connections a to HBO, but have situation. that may broadband go able

put and HBO. can't up antenna provide an You

and they they is and can why HBO DIRECTV. full anticompetitive, AT&T of for because knows only own DIRECTV, go that own place they the customers that's our it's so So many well to

they're to that willing make So trade-off.

Sheila Dang

you. Thank

Charles William Ergen

One more question?

Operator

additional concludes the turn back for any portion. question-and-answer closing remarks. to like Kiser Jason that call the to or And I'd over

Jason Kiser

us. for at everybody, joining And call. next see you Thanks, the we'll

Operator

participation, may you your And you now that disconnect. for concludes presentation. and Thank today's

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