DISH Network (DISH) 19 Feb 202019 Q4 Earnings call transcript

Company Profile

Participants

Jason Kiser	Vice President, Investor Relations and Treasurer
Timothy Messner	Executive Vice President and General Counsel
Erik Carlson	President and Chief Executive Officer
Paul Orban	Executive Vice President and Chief Financial Officer
Charlie Ergen	Co-founder and Chairman of the Board
Warren Schlichting	Executive Vice President and Group President, Sling TV
Marc Rouanne	Executive Vice President, Chief Network Officer
John Swieringa	Executive Vice President and Chief Operating Officer
Doug Mitchelson	Credit Suisse
Michael Rollins	Citi
John Hodulik	UBS
Rich Greenfield	LightShed
Philip Cusick	JP Morgan
Kannan Venkateshwar	Barclays
David Barden	Bank of America
Craig Moffett	MoffettNathanson
Brett Feldman	Goldman Sachs
Scott Moritz	Bloomberg

Call transcript

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Operator

Good day, and welcome to the DISH Network Corporation Q4 and Year-End 2019 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

Great. Ashley. you, Thank us, joining Thanks everybody. for Schlichting, I'm joined Counsel. Swieringa, Cullen, Neylon, our our Paul Warren Tom COO; and our Charlie of by President our Corporate General John DISH; Brian Ergen, EVP CEO; Development; Chairman; our Sling; Messner, today Erik CFO; of President Tim of Orban, Carlson, join the for Chief going Chief Officer wireless, for we're Offer Network Bye, Commercial having our be And to time, us. for wireless and first our Marc Stephen Rouanne,

Tim to and to Safe So, Harbor, prepared Erik I'll over turn then do Paul remarks and it to some have get to.

Timothy Messner

cause Good assume Statements to actual are subject statements. constitute no materially differ Jason. We Thanks, right. results results call historical forward-looking statements this forward-looking make risks, that uncertainties, All from to statements fact our of our historical morning. forecast. could from responsibility we and are during and/or updating other that for not that factors

the SEC factors please other risks, refer and more For filings. to information, uncertainties, our in discussed

of on the a bidder. As bid we as today's answering we we're anti-collision resources the FCC's any what application of not in questions spectrum won't participate process rules, an and if XXX, part any we to potentially Because that discuss to for auction on, Auction able call. be filed

like that, With I'd our Erik Carlson, CEO. over to to turn it

Erik Carlson

activate last look with course, and from and us forward as favor Thank in for of with Boost key dull to the big step the T-Mobile. a merger, MVNO Marrero's week acquire Mobile and you, T-Mobile welcome, here, development decision Tim, judge everyone. a Well, never as we agreement of Sprint moment always, is which federal the Victor

California customers. business, want here certainty. members team top measures, seamless for the And our the assuming really Since know, the the business and a most stay dedicated on into a and for day-to-day stay, entire servicing there expect requirement. few the extra But Notably a that hurdles had of retail continue appropriate into we've over retail business. and and onboarding overdrive from build-out between including I'm us Boost a our and team working wireless the to close to the I transition and toward approval remain well announcement to last closes, efforts. and thank deal Boost focus. have their to July, taking [indiscernible] of will all state we ensure fulfillment As partners, of and we're smooth you effort and for preparations deal prepare our PUC entry wireless its teams employees move confident as serve kick our I

As entry our is and over progress leadership to our Paul. competition ever, goal into to Charlie Tom America's XG. here brief A before network. turn observations on broadband XG and few wireless, address our the quarter are of the in promote not retail defer to I the just it

First a DISH TV and right results has for dedicated customer strategy the to the technology, I'm of and DISH. for subscriber of acquisition the our base. and trends the the pleased term, the geography that been pursuing on right delivering us net loss stability value. service, remain quarter, with and in the longer on over the It's side, XXX,XXX saw In direction yielding we the we subscriber overall

from continued We to last program not retention. were it's lost do said, than back of we that believe an and our now. operational discipline That and challenges a And we team quite acquisition Looking review focus year-ago look, set with the I subscribers. we net year different XXX,XXX regard Bryan's period, are facing comparison. to apples-to-apples

our I relative think to right continued our stability base. right can the you customer our in the user So of Hopper in addition investment philosophy, credit to geography platform

our in We underscore the quarter. the Prime, really the work These video as TV. Hopper, and improvements on deliver doorbell of app app business day across value We have in we platform. the Nest examples kinds through two for DISH integrations Hopper the that announced Hello Google Amazon every at to

TV the continued to delivery of Sling we pricing side the the of overall value. disposition and house, On

net While this we compared year. few customers growth, saw Sling a fourth quarter an gain quarter did points consider. annual XX,XXX to sub in the the in XX,XXX lose net of A on last to

quite offers. wind broader is of late OTT this that is changing Obviously, bit. providers dynamic the Sony the last and additional year streaming the View launched market the aggressive introduction down There ecosystem commercial change the of a of with with

in user lead best focus of experience is in on crowd the value slated experience. players. have in really stand-alone our excellent live draw customer perfect solution goal that for the we which forms And on overall and it place for makes the growing complement the so to a its focus SVOD Recognize of Our tight many. ecosystem streaming

cloud of but We're News dedicated We to the all offerings we DVR brought both positioned see TV to the fourth Orange need point. Blue Orange the we line-ups service launch both that including dynamic Sling the live Sling to and and offering expanded channel and features with best that some provides execute. also and the free in and services, can a news added included subs the see Fox at of the quarter, in flexibility the Blue marketplace, Blue; in And perform services. the subscribers, consistent price functionality including updated experience that in for well you

our like we few Orban, remarks the a it to for turn before Paul Q&A, get to to about the financials So over brief CFO, for I'd quarter.

Paul Orban

Thank you, Erik.

we roughly drivers. XX% adds high-quality gross quarter continue fourth Our DISH year-over-year, and up of activate to are

in for improved related transmission income both subscribers season operating P&L, quarter increased And disconnects lower ever the by for due football primarily EBITDA ending. last our higher satellite up competition year, time due expenses, the at partially looking to SAC. to the first to the to margins, and compared and lost Sling offset are However,

partially by TV's was XXXX QX was subscriber which and offset increase declined and retaining focus price revenue on subscribers. acquiring by Pay-TV in our quality ARPU due increase Our The base, higher DISH driven lower high continued ARPU. to Pay-TV a

increased addition, revenue. In Sling from benefited advertising

were quality the related positively by including impacted to reduced subscribers, for quarter Our subscriber and sports. channel mobile, higher our regional and costs margins

However, SAC pressure DISH higher want viewership. we programmers up continue to face the is TV and from of activations. higher even declining who rates, this to face long-term subscriber in quarter increased due

However, slightly activation to decreased the from cost per $XXX year-over-year. $XXX

we better experience, This supply which equipment our additional Hopper to new the continue drives influences offering has costs, We a It best rate. customer improved our believe with long our loyalty a user percentage and customers greater of hardware but delivers installation over receivers. term. churn

result versus from acquired as the satellites a in during we last year, of quarter the decreased expense transmission and Satellite EchoStar QX. fourth

lives. reminder, We free these a payments on and longer As depreciated are flow. EBITDA remaining for sheet, impacts capitalized our satellites EchoStar to both are the their cash positively of and make over no use these cash balance which now being satellites, useful

up generated in were initiatives free as wireless of this SAC, billion $X.XX cash expenses CapEx our support and G&A quarter, flow cost wireless fees. Despite this to in result a in increases and legal XXXX.

raising Boost and we with gives billion with fourth $X.X During the quarter, quarter the the us our cash on and billion May, offering, for securities. fourth cash maturity $X.X debt the for to the ended This XXXX $X billion, and purchase approximately ability in hand. approximately billion, fund marketable of $X.X wireless completed redeem rights initiatives

to expected between expenditures be million $XXX $XXX wireless XXXX and are Our currently million.

accessing opportunistic will markets. we before, said be we've capital As in the

look echo to for I are how Finally, begin customers. forward the team, In with saying and we've DISH last Erik Boost the them working we excited close, been preparing serving to months, in Boost few the family. joining the

With will questions. I that, turn over Operator? for it

Operator

you. Thank

session. Q&A first community. members Q&A our of begin This is for now will the We analyst session

We Mitchelson Credit Suisse. will first from question now of our take Doug

Doug Mitchelson

raising with whether announce whether some tenant that as point for lot or soon Thanks this on network be an follow-ups share tech investors like founding build Thank a of and the understand your lot have anchor helpful. should It timeframes, now a platform. thinking finance be out, you. there or Pay-TV to XG I've particular, so other been thoughts much. And at it's, you're in you on likes any seems topic it closure. willing with might your the there's Charlie, Amazon a Is at a couple of context wireless on to point. partner interest to of the quick discussions whether got business. for assumes this you all helpful tenants Any it's just and of would or T-Mobile/Sprint flexibility on a anchor

Charlie Ergen

we rather T-Mobile what do somebody we infrastructure all our who great and closing, good, if and in don't that. We are ways, it then not got ourselves. wants at infrastructure's in is for Sprint the would look but is. has on a partnerships and confident our can at strategy can First, of think be some those sense pretty comes of go. very be to where can go, terms build where things our to, they've out to all that anybody at up and solid strategically, step vision and first and place. have certainly, we're, in Nothing wireless of of highly makes strategic in We'd of of got on the we things point, really on we And aligned we're financial, parties, has partner view view, of number we terms wireless so so to build obviously it, a that strikes have changed look that this those good it

where predominantly the we've lot with It of know digital. are today. a just digital. a kind we It's company's, of went initially place working it's to for satellite. and today. we satellite. before materially our was it's, analog, of the started period XXX% was on The of of in blocks for build what broadcasters the way the Went in it's at in world XXXX. wireless, building and to operate different it, we network I time analog. again, architecture been was that similar our own network. And cable And and expensive when time, networks have taking It a a thing a place the started think point put we less XXXX lot our we've a digital to and network, launched We it at different that terms expenses to very first long was same less the not The build lot

and hardware network to we that have different can in software We the people open a fact primarily that today. model. is the our It's versus of going be fact cloud, networks standards. The because we embrace people's just less and can, automation

for is. on you some during of So the to particular best but get short things partnerships call those lot a share focus not know we'll those you together, industry whenever with put you'll let today's but Tom things to which answer The that always want, going know. information you all as focus, obviously about talked of you're and is today's guys its

Timothy Messner

Tom. It's urgency shorter the partnership Obviously, last a any but we in week. summer Doug. Yes, further order probably It's there partners. a talking from the feel particular this when strategic then list was that an increase is And around transaction, interest to, don't we announced point. with in the not striking at we're prospective who of ramped judge's

Our focus, the business we're as to so one. Boost integrate prepare is Erik day said, operational

have the months, of is second The to the several the and architecture for working been encouraged progress. which focus network, Stephen finalize by we're Marc on and

the so start country move Third vendors. plan down area to, vendors, to finalization we occurring around deploying that be area and to will in want then the and of key third integration focus into We're very various in with We lower work the is sets of deployments. And on with contract that spectrum megahertz we we've multiple XXX is the beating made, compete area basis, of XXXX. forward economics to right incumbents later them MVNO have the to nearly we're and look narrow price aggressively. labs fourth now a to cognizant obligations cost once and both because per so enjoy will unleash be much be to market owner where aggressively market our by will of incented gig and we that actually FCC going than the

Doug Mitchelson

quick helpful, thank you. Very on A Sling. Helpful. question

results for kind any full-year the of that Sling? fourth quarter at suggest look we be Or should or growth we impediments quarter, extrapolating in does fourth should strategy we as the forward change considering? be Looking

Warren Schlichting

This is Warren, by the way.

of different half lot I XXXX. there a were last of in influences think

shifted that doesn't might We lineup increase. channel RSNs I think include We So, price had extrapolating be so dangerous. anymore. it a our

are, our We we not may disciplined we position. to where bundle. our we be everybody, like So, taking everything We a but like we're team like and approach.

Doug Mitchelson

all. you, Thank

Operator

take our next will We Citi. Michael from question now Rollins,

Michael Rollins

Couple questions. of

bundles might that First, differentiates during the guess expand And embracing wondering you redacted differentiate transcript. could I and if was how referred the on how then business. could parts a that native more a the what Thanks. testimony, you was of expand business are wondering model could not the were and you I bundling, customer upon bit to that also, business, wireless the the for the cost, that The solution wireless it's cloud your I redacted if types for experience. foresee

Marc Rouanne

Yes, Marc architecture. on is Rouanne the this on question, first the

native, it testing we the the all, on and going the So native. cloud means want. are cloud that we cloud to cloud of been you first software and or where you or the at premise, looking it use you can put have can put in all Cloud native each

different scale to adapted you automatically, If usage. the it will be

Because it native, the a you can there seconds, Now, you're why adapt end you a right? when move can new to it. cloud on you good that Actually, within server, a They configure centers. the can is catalog then is software, or difference for user? And data of the you Azure. you it, for AWS do way of think services to adapt the see

have native software to can type same stitch very differentiate will big. any apply you We catalog to is use the the case, services So capability and right? of of together that

hardware, The costs source in you're course all-purpose other now are because you of data centers, on are open is different that the you stacks. are the using thing the

and the what adapting the GDP and to makes case. that's difference. So, speed A use

Charlie Ergen

can't And something and, I this what? the about is The Charlie. question was bundling bundling remember question.

Erik Carlson

Bundling testimony. around your

Charlie Ergen

we Obviously, rural all have don't think, testimony, to to more a testimony, out sure than have today. from more do perspective, I relationships move right. we of not remember business chance look, around bundling we exactly customer business. exactly, Bundling a And but I'm I more a my centric urban

is big But video what And so, also have in-home we obviously, do. of variety, a part a services. we

in way. connect are also different We to a able people

be think last growth, mean, able that business, of position we'll I of big do. TV picture We in the now, to we're DISH I linear the lot on had to another investment years in there's in is So, ourselves and put a we've a things number situation. is, a is now to the put has that engine few grow declines.

it, it's doing and DISH anybody exponentially the our similar business digital with that similar before. now. including were our we're of it business, that we had fact will majority our came, big across traffic video. we broadcasting over to the it's very of So And very were prepared probably able because four, similar to, I go years saw in a lot the network, the will before else, when the and think when video, where in growth and side situation time our the business are business we grow were business was be it network, of we We're across traffic five been where again, grow in declining able analog and in wireless the we but a to to

Operator

UBS. from take question of will John now our Hodulik We next

John Hodulik

assets you have benefit to bunch and any markets more see go-to-market terms there expect do done if the I enter When then to markets. either of you those we in expect locations big for utilizing prepaid towers you for part XX,XXX you postpaid strategy these in it's as a pricing be on market all, if due was should your going detail us and access and deal, distribution? First or Thanks. of diligence a guys is sites, much And you, of to wondering any on of of the retail can Sprint. you've to give those forward?

Charlie Ergen

potentially in not that towers towers, T-Mobile smart, positive, the We're the disclose to the strategy. particularly it stupid allowed we're Obviously, squat going that. we're up, not that towers Obviously a or frees but to obviously in and to not our towers go-to-market is stores are the that we're very to why, the ready things big disclose on of sense need. not part

probably a on costs. helps And to of give perhaps tower. so some vacate our margin our us That reduces build-out, to they are notice going when they're and on the required

John Swieringa

Sprint attractive will The us. at likely heights centers available RAD site to are decommissioning make of that

as could tower. rolling forecast to they intend vacate a there that when So, they a provide is to us to

Erik Carlson

I seven and the few a bit, some done years, we is gives used leeway net. wants safety use haven't are the forth, United because the can T-Mobile build big that and States. about. a Marc little have world, in household terms of maybe really with how we of more we experiment Stephen the we in us big a picture so that been It can for network, maybe that Marc chances, lot of think along lab, one can some the or of the great that have they'll It take names pretty to towers little more other providers bit great network in a a we but names things the aren't in that that, we things parts of, do things gives factors, talk household our have

ORAN we made be split. to compatible with network determined the have architecture that an We will X:X

a this there compete a some Chinese this is country, little if the start network right? vendors to technology. know you same bit, And which don't is something different should that, up build So security to the big a a None set a, the old it the that's in using that things with that not I the is are guys network that no, concerns modern the it of way of do some way of But opens you without it is important question and don't of comment to Marc. to build whole you to of architected. that way, When that the once do. architect network, looking range be United country States like of on at incumbents options, the today. better want

Marc Rouanne

last the we industry. ORAN the working for in working Yes, they're for the actually is as ready trend getting operators so months, Everybody been and we've see few That's on other us, that for big now well. ORAN. toward and

wonder ORAN. It's may simple. what is You very

You you again the rest of of put whatever can radio. something the It on your then radio. that's map, will on do And you want your the impact network. top never

So, We touch of you it's long-term if can that's deployments. so but today, your site, and the radio, choose stuff climb, have change radio we network, you networks. the vendors, the one we new software of as we and sustainability bring won't do upgrade, you radio want. that and we can the once you existing the the you to also put lengthy in problem; the fast touch there, tower touch as the Whereas why can have can we

John Hodulik

progress, a thanks. Any Very of the potential that flow question. on megahertz, Great, cash about the One and helpful. T-Mobile negotiations growth? leasing is with them Charlie, last XXX source

Charlie Ergen

we No, current on update that. no have

Erik Carlson

provide it. can't we No,

Operator

We take will question LightShed. our Walter now Piecyk next from of

Rich Greenfield

of It's got questions, He Rich you'd opportunistic Walt. ask wireless a me markets. capital you couple then for Greenfield Lead the media a first on wireless. be accessing and to question. wanted Charlie, said I in had

back would you which we still your you? $X to I working provide asked from go lower SoftBank, think billion loan rate. they testimony, that if Is a were to at can issue about core capital because a available

Charlie Ergen

up commitment financing part has in to us of assist billion. to a of made small SoftBank a to $X the

still is than reduce $X be. got pay billion reduce us. it reduce lower The that not cost expense. us. but to of it available our just, yes, interest It's to back, otherwise would of would would our it net capital We effect that for is interest a our, so, does it it And

Rich Greenfield

seemed a you minimal, calculate having that in satellite of side regional over year to million that house, of the amount networks continue pretty those of on we Then dropped the programing your not RSNs. given terms your on media saving $XXX losses sub the sports

$XX does last any $XX just a of But the RSN way forward like mean, You've million of that at tier I this? And other the tier. quarters. the you there to with and a Sinclair looking it EBITDA, couple lot look Is sub there big how from think change flexibility Retrans them minimums. the on of a more just keeps wasn't they're of at ultimately unless most it Is million, then reason without in picture. of not looks more great to lost last business, and like this, to kind question, decision? this going losses any a

DIRECTV As given the side. you seems DIRECTV transactions? increased to government's it point? large-scale could about Any make and Does they're think I share thoughts on this you guess, and some DISH, at about like DTV you the rethink in amenability trouble DISH

Charlie Ergen

with TV in that Probably companies. providers. start from satellite We'll It's inevitable DIRECTV. coming not is trillion-dollar just huge those should linear together programmers, coming TV from go growth two because the DISH and

only some a could has think players. see it's those regulatory that's eventually we'll So, question the that, I forgot you but makes that and think the make against be but two upstream have marketplace, the maybe big company behind subscribers regional some first me develops, obviously to increasingly of sense. Oh, issues when each you tide likely that Having two put them becomes can't, was. that's going to, to going you that what all that I there sports. regulatory environment, I over-the-top, how swim together, usually to can't probably the logical just there. said And real sense are still but seems, because

and real watch. much the is we I mathematical of programming their for historical, And want got marketplace, typical is. if single-digits outliers paid watching X the well, should charge people in are the the contract. people somewhat we watching view the and actually And they of sports plus we has want. amount terms is of long see of in price is seen of think science getting people so increases of marketplace programmers, here terms we do X that And would And are what takes were money and We value our we as a be next for down it's somebody regional watch, now been everything you've plus, and high many what the in one be, who opposite, tactic in price, people's and less X. see go is was it the that always the What negotiating customers have in can exact versus say of they time of when that can don't big the the to real which amount data and rocket collect sense Look, a that how customers price people your watch less. them. that

we do So, deal regional love to with sports. would a

really own because then the, on of leaves Sinclair burden fraction less still We it's like to watch last that when would, to sports. in the the might sports, have that unfortunate our have not our We network somebody some today doesn't company. sense was people was a came did But what it make regional sports we wants Sinclair on they network, regional circumstance that August regional we down. And contract it it want people was once up. our

understanding tax the rest So, there's watch alternatives. back something leaves network, the the us no programmers have leave because really and people to people a hard the reason because that channel of their time have put once who they somebody

So, the something for was us. the made the we not offer that even the of Disney our contract time from at up had close clear to folks kind that math sense was was that

relationship and an an whether you A some this with back Dumpty now Sinclair you it's lot Humpty think where Sinclair business, are today. great put was But really period that's decisions, obviously, for long a of in can of question. times But and a we time. easy one, to owns And it. We've easy about. open together again remains had got

Rich Greenfield

on It the would seems that be like very hard. math

Charlie Ergen

hard. other because and have other right? The less, they It's math the actually that just is we different have that us customers math now And contracts. isn't for

but it's worth, was what the it it's And so, get, last We easy. is than they today know and less worth math year.

Operator

now of will Philip take Morgan. Cusick our JP next We from question

Philip Cusick

came on last architecture since expand strategy network guess any can you the come and Steven Mark but to other the they they or Mark and already, with us on I starting call started since evolutions on-board? have around

Marc Rouanne

about talked ORAN. Yes. We've

the is testing not this or test, known thing we now, automation Actually think and testing about fancy have another talked are way we ground I The We're labs we very native. from features. we're the is cloud in today way automation. XGPP up. important

We the second. have virtualized deal a we what automation everything milliseconds called We've big or where have loop the automation. happening by closed where is network green is

of and for it's a rest you example, coping So for site lose sites board. across are the automatically site the the that

If is and a have have networks to compared automated. a that slice future to to you big that's in you are network want that differentiator not us existing automated the for

network do If XG add-on, in in you want the We be than better script. much to you create we have manually, an honest, had a and XG or provision, done dynamically. want it's new thing your to existing traction the network big we slice the to expected. automation it That's next good

Another one is that, we think consumption.

because Again we transport So traction have see last healthcare, we it? based We when we and and defined based doing driven We those of lot five how are a the from older XG knows consumption for starting same lot the network U.S. techniques. would ecosystem people use network was that are the for use on Airbnb, three the the architecture. just years a not how Actually in new services. Use a like sell Uber. on that we use been studied cases do have cases the automate consume been building we a do and then TVs, cases thinking we're that? it's looking, that how prices to smart of everybody

knows to is thing on ecosystem a containers. heard A source. the has lot source. but to lot build security. the had last has things themselves rounded Nokia, changed. Everybody work Ericsson open of Kubernetes of open So U.S. is on around from bit we a hardware leverage the the the More side completely The us. recently that up the now available can has started that's These technical what are is about, what that is interesting

up the security, we to ways manage do also see in all native And all the enterprises, the When want? ecosystem manage software. they hardware way the their talk to they They from the to into security. way but and want have grounded U.S. what their themselves we the these want to network

will another differentiate big native. that will So us. be that's Security thing

Philip Cusick

Then obviously, need buy the do going leaving the you. year? in come Thank see to just to Charlie, I next a more you current was available auction as say, CBRS aside, and C-band mid-band

Charlie Ergen

Yeah.

was I We the ago was I that with We if every that use consumer. going third anything. talking auction. auction other was I changing. a about a It's which ever Mark land have Mark. participated. case participated part is The We just different held. on much of we've typically, what to do started don't beyond we years that's our normally XX big of thing don't a add can usually the always networks see business, enterprise only think network. lot the

postpaid also accommodate. be I current everything the think big future, in what really a will big that is of that's slice be the network used networks of that network that a can to slice is can't way architecting the what a be a part that that network will particularly Boost and that does Mark but customers and network by that consumer in So in Boost enterprise

probably today. so that's model And anybody's another in not opening. That's

potentially able if network management Fortune we'll I be how get that. revenue strategy. of but every were-- certainly XG their Part strategy, would their Almost terms is In that is that the thing it I generate and to to we directors from kind be the they accommodate we're mentioned building. of how of network typically. the is use asking XXX what designed

think different animal. a So we're I just

of and the a get lot on more the confused you the networks. with past those tell in of networks, cost I'll one OpEx analysts of the that maintaining you networks incumbent cost those and networks building have thing;

a much as today the The that have spend big of build you you networks to or of see data the IT spend people hard with network complex XG, compared be network. reason the legacy you and where compatible and have is everything. you modern lot But in maintain so in two you're to of astronomical yet backward have anymore. their it to year Some maintain money you world so as a just center to XG that thousands we'll and do in companies not more the and is cost so need to to don't automated, while the is XG people just

can a paper today with automation, the count employees of you architecture you that. automation do just a and run and see network you you're hand can of people there. starting sheet lot data one center In probably to less count. we modern clean probably that You a that. the number need have With big work on to In

So is of material less. our cost

Philip Cusick

is going look I Boost an like? follow-up quick Can idea One run if incoming of what give Paul for to rate can. you the EBITDA us

Paul Orban

may does don't we of We like. they what take can and it get at what look Well, disclose probably what a from to subscriber idea look an really platform that. a perspective do

Operator

next We take now our Kannan will question from of Barclays. Venkateshwar

Kannan Venkateshwar

capital? retail when big build-out, this that your look when be mix now you wireless all it from be enterprise or more potentially business raising could wholesale capital the that from structure? telcos help a any your much is right us down equity the raising at capital Thanks. through that of for of business, the of alternatives evolving end be If the do thoughts would as there you the on go state? laid perspective, of then model go the will Would capital business you Do and as overall available just component fraction is you of is, useful. you have also and and think smaller there longer business, the big you part Charlie, retail a about licensing fund be to the there in end process term, think as path third-parties going wireless course, how very in as out of with you a the a you see you will Secondly, to a do state? traditional capacity possibility perspective,

Charlie Ergen

starting X base starting very, Boost of we're the at business, low approximately to the a on side retail very Obviously, million we're with customers.

have. that XXX other incumbents million obviously, So versus plus the the will X

size period do low base going obviously, very, Having said there that we cost the and we're we're all very be be time flexibility some opportunity to of how business. it, to grow there. that, there's and think going lower with there. do obviously, not to things structure in long marketplace very going But a be-- to we is doesn't for a, that's can think we're different that we So one and fit that in we

and one of In capital are and have could debt, management and terms structure are, some the blend but strengths, to that advantage could experience we, depending a we take at that. answers years. how marketplace don't mean, we really enhanced and our have we're of our all profitable and opportunities weaknesses, the certainly opponents how opportunities that knows and where we're to skill I we equity I capital we creative, to comfortable we structure, core, marketplaces able a good have We basic where this years obviously deal over knows be that to to of and foresee we're of XX haven't that. And the team a be where the the has, have only on mean, that's on presents. to can be with uncertainty be go lost We've and to how maybe company and find everything that going going do, depending business.

uncertainty, but a, perfect challenges. company really crystal taking this Every never good really, dealing it. is it's advantage has have a So, opportunity, with doesn't company at company of and ball, and every

Operator

our Bank We next now David of will Barden America. take question of from

David Barden

to like at foreclosure or would kind question the related about in large side today, build then the would of go you number Would a Or trial right? be to on financial that that do billion one to fund step look by to go kind which try when several collateral? the Is little the and partner, It that And a maybe were would the where be, there help came collateralized only to that industry to financing, maybe follow-up were if have sit finance bank if business be has network. willing of a this? really even bit a organization, and is in up get to plan question. we of you $XX number, project. the the amount of kind market the a banks what kind that you spectrum model shares, Charlie, any anything that capital so have prior give framework, it absent follow-up in can Thanks What and really losses, could of FCC up of though of might cumulative that this like? help of build-out would street terms the much. look things, to so target or that operating there think kind of business other this

Charlie Ergen

some details mean, there I some to billion Yes. we so without that where are, I and goes think in about wouldn't without be obviously kind forth. expect $XX all range detail, kind of raising of capital the

probably And speculated, most really It's this going raise there long terms numbers. It's speculated. bigger tough run, going legacy companies probably more think have materially again, obviously, the kind the that. time a certainly have in one the have we time ago, long but digital a run. paradigm people short was the --again, in short many to run have one big really, time this to network a against every really in the virtualizing is have analog capitalized So the of just as an hard in the from investors of get where few they and than the plan of They'll to costs terms obviously, bit shift. or and and plan get that there a to long is many, in are we'd extraordinary future for look model a do few. better on certainly, Not that will still But than is, people for the long-term there less business business term, But the are that. you'll but a be those left. who to bone people capital, the meat the big do

David Barden

Charlie, a that to maybe something capital template trying look do the for a do kind what kind you and you're U.S.? goals significantly than you Or think Japan? their inheriting in just what to us business of plan, you different investment here prepaid as of you template might in to their look pointed the can point follow-up, what kind maybe Would as and us doing are like. Tracfone such business for at as they're timing, subscriber you a Rakuten of their

Charlie Ergen

Tracfone's hugely obviously, not business. Tracfone, a With profitable

wouldn't the problem I Boost it shouldn't that NPL network that seven have be be, with years because profitable expect better for and a a an business as they but agreement could better part So, we hugely out. huge build is T-Mobile's

the particularly economics business, we on user price. pull since I have the have can that price. back-end, We can an economics owner we opportunity grow the pull coming and mean, we to that

we'll position but be call that, probably have a unique and that's to the detail to into in. pretty conference go position more was So in, be of to unique on that

kind from actual architecture decisions. more months since but differently. And the not since really their first so sometime been, then, from Rakuten they do. they going the start, and has sense we in what is to incredible system, few to that of a we learned technology open it's that The the company XX made we we're But first lot the turn an months XX important pretty they in a progress on months advancements There's two but we've ORAN them, I of of next with them. their lot were a away, announced the advantage been amount get some of technology embracing to had going they're start it's months, few to the in learned do things advanced, of make their market's think

advantage? our advance things be marketplace how we those did where the they to do and same making, use they good from decisions started might on, us of what really Where right. does as template Some to the but a our gives working they're it say

they'll with future. doing And we in back will. hopefully the not and they're so, so we little be arrows of person. successful do first second very expect for the in the a And get to always be than do network they They're it's they XG a to I more a spectrum person, going easier the lot too. But what we started certainly more But get kind are lot the big is than and XG. right designing to thing start it's the

Erik Carlson

the clearly, different. similarities, are there vastly markets two are while And

Operator

from of Our next question MoffettNathanson. Moffett is Craig

Craig Moffett

for timing little Could the larger length clarity this is you timing the in make some the the network year. closing. investments capital for that the best you to your for some investments? It when bit the guidance the wholesale end that runway making get of agreement, you requirements do may of how your I your network want the T-Mobile and you to capital of you've on build-out got lowered comment a deal like built? start looks be now guys of your of just when about But about CapEx think expect

Erik Carlson

to XXXX. lower talked it. you're think always [indiscernible] in into I and you $X right. really about didn't say, then were going I billion What we'd Paul? mean, We So,

Paul Orban

I in $XXX disclosure was modified going and to to say included million for spend XXXX. that it We was $XXX to to 'XX $X $XXX million all and the original in 'XX. just that million billion,

So you that within we're into if take we range consideration in what XXXX, spent there.

Erik Carlson

have we of lot the big flexibility. thing, But a that is Craig,

is we're kind a intent. be long-haul So first on planning lot; permitting, towers a that's doing we thing question, of your will our our and in the get timing it sure the making

to this we works we've and zoning, the got those things, structural, all that the all year and because there's in permits started, you a get lot not so civil And to need build to do.

have And so, the that. flexibility we to do

we lot hardware have FCC wait commitment, the so our a We've T-Mobile of of off flexibility of they're obviously do to that for of terms in cover timing perspective we that is, that. XXXX. shelf we But to in the today, population. in get they're MVNO and to XX% only deal, XX%, with in The a flexibility we've got things production, got not doing we software is be thing that some have things. don't from the for the but we're a perspective, second The those

on build were have the, our we'll of we'll greater software So, zoning depending permitting the what for certainly done what then we all hardware, than and is. far accordingly, could, state that, and

good news make mistakes today, certainly we net. can our mistakes. net now So the have still and of working with survive safety we and big the again, some is a We're pretty

to a had company, we Sometimes that, haven't in haven't we our with work net worked with.

a done. And down So I'm today. big we've obviously, until But years better. got rocket. today, convince we've up not risk of and next to it we, there I see feel Chinese not we're got execute, hopefully There's that sleeping the you seven We we'll year, a a over that pretty touch why within until see little end get that, good on get go a of to first year, market, bit it, and don't ne. going and of net. much by can anybody and it's see certainly --we'll our you And but the different. got

Craig Moffett

the can. that I your am a the what barring it lines fair that said? capital if out But to of answer, you your of interests Is at XXXX It just right? build interpretation commitments sounds investment, the the that like, senior FCC, load reading for the back-end sense between makes you are, more

Erik Carlson

goes go the costs by, a that better. is Every bit down, month little our and technology

That's the supposed at and equipment. XGPP. XX slip bit, to be and out you've got to slip That a little a if to of could the that it June. a where of so going have how of is expenditure. sweet exercise technology, gut paradigm release in then because to enough exactly don't to feel in My know that spot shift your in your decisions you is. becomes you capital We terms we're might sweet in when need virus that, all get spot So, know

the and in we time and probably is us. So, for next quick. readily go as spot release And then soon available then XX software, Probably, that's year? the pretty sweet that is equipment as this

you're I think this year. but sometime pretty the is what it's year, next going steady a see run CapEx very to so, rate big being And not

Paul Orban

And know, we you commitments beyond other as have Craig, XXXX.

So 'XX it's in in additional both then cadence 'XX the a build-outs there's and pretty, 'XX. build-out there's to and

Erik Carlson

we that is more will a difference focus by big on the lot city But city. will we build,

to first with so to want those getting work then us we we going don't are interested there, obviously probably two and we XG going So, of build that obviously can cities build by We'll build, that probably cities a some Obviously, city. more city city to city cities not city. the will have. get a can priority, have that time, And we'll and city, bit the every owner out quickly. that's we in next complete economics build multiple to out before we build when to there's a a same in strategy move but be at have we're towers

Jason Kiser

media. have analyst time the more before from move we Operator, to we community for one

Operator

Thank you.

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

[Operator Instructions]

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

from Feldman Sachs. of comes Goldman Our question analyst final Brett

Brett Feldman

There's two, you if mind. don't

quickly access have where have going even a of strategy is partnerships could on rep your and pretty keys capabilities rep second, distribution. opportunity able selling these is intend be Verizon customers calling on transaction? sell close calling them. like might enterprises. thoughts a makers, decision What's to of into do AT&T an Boost the They example on latest the a talk the those be to then you. simple. rep How your them. And to First that big one calling They types your Charlie, Sprint you you'll network on the enterprises important on one of of have how All you an natural Thank seems forward? It them. about to part

Charlie Ergen

on on Brett, to not the Boost Yes, new until customer we T-Mo the can closing we're Boost, required close any network. provision

a bit once merged, they and consent mean the won't then be before time decree, Anyway, are to strict we the it technically? of with a be a is public, that close they have many I with it's for after under that T-Mo, time can merging How they're that. simultaneously they'll this timeline days provision. some, lot make we it take should [indiscernible]? the think where Boost, of I on Sprint But not to, because

us, it's I but that. exists, then there an do would wants that first we we'll with force, when that we enterprise with to prepared we'll have business, we enterprise to don't better build enterprise sales And we not. it work say have can to I public, force would news think choice be into don't normal already the example, good want If our businesses, a to enterprise it, competition our and is And do we're that then go that if on recreate, with would has way. somebody have an we be either the follow product. who an might sales as that be has comes if enterprise in nobody But something to force that sales philosophy sell sales and force place.

the doesn't share. our get it mean we'll mean, So, all fair get we'll But business. I

Operator

from We will take questions members of now the media.

[Operator first Bloomberg. Instructions] media Moritz Our Scott question comes of from

Scott Moritz

the Charlie, marketplace, phones? iPhone wireless as you'd you and entry what you the be ahead makers sell? look have to deal T-Mo Have Samsung the you able to talked able closure top going the be two your to are where and the phone to of to latest Sprint phones into

John Swieringa

sense OEMs. with them, agreements competitive at the ability since Hi, makes we'll we well the agreements XXXX close contact in go to that. the through to got transition as I'll have. all obviously, middle take the continuity and it's coming be as in July, and announced like Obviously, Swieringa. one. back We're be price that deal a direct John new the there's been we've it that of in with of go in features where line-ups out in services major through with level. those discussions, we position And right the all things We've

Charlie Ergen

will we phones. risk not to line, a our bottom business. Scott, That's have So

Operator

no back further would I speakers. our to now like the call hand at are time. There questions this to

Erik Carlson

operator. next and you, joining, everybody I you Thank talk Okay. to we'll Thanks. appreciate quarter.

Operator

the concludes that you Thank for gentlemen, your call. and Ladies participation.

You may now disconnect.

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