DISH Network (DISH) 7 Nov 202020 Q3 Earnings call transcript

Company Profile

Participants

Tim Messner	Executive Vice President & General Counsel
Erik Carlson	Chief Executive Officer
Paul Orban	Chief Financial Officer
Charlie Ergen	Chairman
Stephen Bye	Chief Commercial Officer
John Swieringa	EVP and Group President of Retail Wireless
Ric Prentiss	Raymond James
Doug Mitchelson	Credit Suisse
David Barden	Bank of America
Kannan Venkateshwar	Barclays
Walter Piecyk	LightShed
John Hodulik	UBS
Jonathan Chaplin	New Street
Phil Cusick	JP Morgan
Kutgun Maral	RBC Capital Markets
Jonathan Atkin	RBC Capital Markets
Scott Moritz	Bloomberg
Amy Maclean	Cablefax

Call transcript

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Operator

Good day and welcome to the DISH Network Corporation Q3 2020 Earnings Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Tim Messner. Please go ahead.

Tim Messner

Good morning everyone. us. joining for Thanks side the EVP our by of CEO; our Wireless. we've the Paul on Chief Bye, Chairman; Officer Group Commercial Corporate Ergen, President Erik Orban, and Wireless on and Carlson, Tom Swieringa, CFO; got call joined Stephen Charlie our our today John our Development; we've and We're Cullen, Retail EVP of take prepared you Paul Eric have remarks, but let disclosures. and our through me Safe Harbor Erik first are not risks, we of during factors make historical call that from forecast. that results to Statements constitute results fact subject that actual our statements from uncertainties statements forward-looking differ our this historical other materially to and/or could are cause and We statements. no assume for updating responsibility forward-looking

filed for potentially as and be rules, that call. As on part of we spectrum the those were discuss that not during process the we application a not participate an for FCCs bidder auction Because will XXX, FCC of assets. to anti-collusion questions able to taking today's Auction

Now Carlson. I'd our CEO, it Eric turn like to over to

Erik Carlson

and good a Tim, with our and DISH TV. through year X billion revenue welcome families quarter. I continue the saw wireless Sling I to been We've your in and strong more built. keep and and and well. business, today. growth Mobile brief continued with wireless make TV you, we healthy comments entered exciting leave plenty And July numbers us than on discipline for network the and retail execution time your due to growth our reported questions. to into and and PTV better OIBDA. progress We with with you customer appreciate X brought our are hope We will call. Paul of an you everyone being Thank It's acquired Boost

the highlight little those across With Paul The TV in changes a XXX,XXX. our items performed well talk approach to Q, like few COVID about our it. press gross reporting, to of minute. a see release. due the Activations earnings we more were Boost are environment. will you'll primarily in units. given as bit the to I'd new our well the activations a to and made segment which approximately our With as in quarter DISH regard year-over-year down to business current acquisition

impacted As I crisis and direct stated mail, like lot to in to homes. some a before, services tactics cases, the filter willingness has marketing respond customers' technicians in form their of opening

we marketing decreased. gross and have a subscribers As our have expenditures reduced our result, DISH TV new

anchored we we quarter long-term this higher DISH strategy customer committed been in been saw retaining net quality customers. base, However, loss TV more DISH We've of acquiring remain profitable a XX,XXX our subscriber or has In path. to and TV customers. on and focused credit rural the

activations, the we Power J.D. thank mind been delivering We've the primarily significant have offset detail lower result are work customer that class in by new and a gross to in losses DISH and the want service, in our placed on for Our off. value third Paul by a will TV number DISH service, subscriber partially a more keeping lower We've year of satisfaction. best also as of churn exceptional moment. to top I delivering commitment this Look, right. and paying for is customers recognized at technology one straight customer that everyone provide.

which the experience. We've we The a made also enhancements acquiring or lost And beta the is subscribers. gained is made heightened Party attracting This customers. the Turning on we'll by to the news all third Sling, quarter Watch has platform. more significant focus due approach room in to still when the helped increase of which the to and in given launched version to We experience environment and right the approximately return retaining quarter increase overall from disciplined to received. we've previous XXX,XXX encouraging to the primarily and customers we TV know to competitive the Sling We both said sports we With user well TV. we've continue customers. improvements grow. taken that the profitable been Sling delivering DISH numerous for to great have to a quarter

Mobile customers. offer retail a result mobile a retail of switching bit, virtual wireless wireless competitive entered than we service MVNO. the operator business Now in million the gears with as acquisition officially We a now our quarter, third more as network or Boost X

enhance started of need an Retail just operations customers. XG profitability. better likely and continue network was customer quarter mix approximately continued focus our the operate another will to decreased getting broadband due the experience make of changes to XXX,XXX subscribers and net changes implement profitability, the largely third retaining While and on we'll in integrate wireless the attracting This operational to certain We're MVNO. efforts we will and right our wireless retail drive out improve to under that build quarter. to

I TV. As and strategy with will more similar what mentioned Implementing TV we to did what discipline we're acquiring or and approach profitable quarter, high last now be quality retaining DISH our customers. doing Sling

will retail network to as better is drive us Our profitability to And network, own space. economics we benefit be our MVNO. pay begin from roll we'll part that profitability wireless allow the older and access more by in drive an what determined disruptive in competition out to we as and the

continue to Intel, our progress on work vendors, do, to of MATRIXX it's nation's network, be to We network. gratitude results. we to confident and to DigitalRoute, definitely continue approach are a team. including we Paul with all cases VMware Bye are Technologies, over take care And are both a opportunities express for daily including our In here Steven named software, room available has that has and want country Now, customers the doing team's I'll day work that, hope we'll the first lie talk to into other we grow disciplined well. I'm our numbers. the time our our on a our part Look, and Since and across observe our ahead. we OpenRAN the regarding the as appreciate We the make Charlie, efforts. taking and to Tom but of my announcement every cloud-native COVID and Nokia, on increasing. to Planet, in additional have everyone's last now certainly call, about lives of lot the our quarter. XG taking got third taking And and compliant and and to our each commentary a care innovative great COVID closing, of customers, that gone part focus I of right I Dish a a and on communities on the I With building little team, still of keeping entire lot safe. wireless focus care community serve. Hansen progress to turn wireless it Blue several become key of

Paul Orban

Thank you, Erik. Hey.

Before we into financial quarterly the I results, to we changes get want address our made reporting. to the

Wireless We for Pay-TV and both are reporting results now operational segments.

as segment each measure report network business operating deployment. segment results XG OIBDA a for Wireless units, reporting we of disclosing in wireless segment will now are results, Since separate profitability retail we segment. are two for Our

our have P&L. addition, we In items changes line made in to the

has related revenue re-titled service revenue. subscriber been First

re-titled been of cost services. related subscriber expenses Second, has

are in acquisition of fourth, in and Fourth satellite costs Third, included transmission cost included are and services. costs SG&A. - now subscriber

was and continue metric negatively churn activations new to impacted the SAC remains will COVID-XX were calculation disclose TV In by We DISH positively unchanged. that and QX, gross impacted.

put As ending removed discussed many establishments QX quarters, or or subscriber our accounts rate capacity. a approximately pause relief. and were in subscribers count. We These XXX,XXX closed are at previous provide these reduced commercial accounts temporary from represent on running

On added third count relief of band. the had or counted a being to came have or no band. temporary those service costs activation. with restored rate Of subscribers or total, in the that disconnected to remaining relief and removed, XX,XXX the we to the During due quarter our is Revenue back and the subscriber and increased Pay-TV year. quarter, of ending acquisition in OIBDA had Boost In were remaining as service XX,XXX rate minimal segment. accounts profitability service the temporary the compared revenue accounts are quarters. expect commercial last up consolidated our without These to OIBDA gross restored X,XXX subscribers these coming commercial majority increased has subscribers were a both of restore in significantly the up accounts to XXX,XXX basis, due

segment. Let's the of details dig into each

lower higher to SLING. by Our both partially Pay-TV Pay-TV our base. in slightly ARPU, mainly driven due ARPU The by DISH and was to price increase subscriber increases increased offset revenue

including multiple the for related regional Our costs one-time adjustments. and programming positively removals, sports quarter subscriber to impacted were by margins reduced channel

to $XXX per SG&A subscriber increase cutting cost initiatives activation the result addition, initiatives to $XXX, of largely DISH benefited the due and last related to SAC acquisition. from were to In additions COVID-XX. to year per cost increased advertising TV the a reduced from margins year compared as related down COVID-XX. cost-cutting last expenses in

retail respectively. acquisition August to turn Xst Xst let's Mobile business closed We on our July unit. Now Boost Ting the and and

million XXX,XXX net billion As and nearly subscribers. lost a wireless was quarter. almost approximately $XX OIBDA result, we added wireless million for Service revenue was over X the $X.X We subscribers.

invested at network out a lastly businesses changes integrating build economics. XG CapEx almost million $XX profitability, And We given quarter. reporting currently operational are our these in enhance to We in during making and process and OpEx look unit. MVNO of let's our the

X substantially CapEx as up fourth levels our at similar to increase of G we second in the For and quarter, deployment. network we remain XXXX ramp half anticipate the

from approximately performance I it and working With million securities. for Our billion ended $XXX for marketable of cash QX capital. We improved free benefitted with operating quarter the of turn cash will operational over flow that or Operator? $X.X questions. in

Operator

It take Instructions] Ric James. Raymond ahead. at And we'll go time. this the Prentiss [Operator Please from comes question first from Certainly.

Ric Prentiss

morning, COVID are. way make good good wherever the to people your afternoon, time. to Thanks, hear Glad you

out cell XG. with appreciate little the sprint some many in my to build we're look update decommissioning think XX,XXX going you're bit breakout to is a to at. you sites need to the faster questions. of T And it coverage details on possibility use get how the how that Can I Okay, still Mobile you of that related committed to? you sites the us

Stephen Bye

Yeah.

Stephen Bye. is this So

XXXX timeline to track in XX% the XXXX. as objectives, terms on the in the terms well commitments of XX%, in as the are We the made as we to of the as FCC well achieve

And so track. on we're

at at sites to that terms also look the we reuse us to provided forward. T-Mobile those of we're has In the go deployment, how as we can looking sites

being track XXXX. of are minimum to the in the some but build as sites that for to actually we XX,XXX design, June included a those committed we're requirement So on out

Ric Prentiss

postpaid how is us update year. also you that moving to a can be you're Okay, within going towards service? recorded And

John Swieringa

a was acquiring and it quarter Obviously, Good morning, Swieringa. everybody, big businesses. in John integrating two QX

One to our compete a take we the lot cows of to to team, the into opportunities opportunities the It's do obviously, on Bing to that assess strategic assets, with the Stokols He's are, at town. of reasons entered with work a tools because to Stephens it transaction gives postpaid. And you partnering as in need market to our the learn lots go be got and some in address where enter we market. look and of. to of have some there's advantage forward. industry. that the when is two build T-Mobile in the for But certainly in going that We'll half been XXXX. we be focusing we've first we of us we

Ric Prentiss

Good process. Thanks, gentlemen. on luck the

Operator

question Credit Please Suisse. Doug go Mitchelson ahead. next comes Our from from

Doug Mitchelson

Thanks I a guess much. couple and team Charlie, so Tom questions.

proof do you progress, in the get up supply what's of ton Charlie, together this can confidence your you and made think? point you've and planned. will but First all concept vendors, you market running a for live chain you as them working When all lighting have a at your up of

Charlie Ergen

to probably big major Doug, preliminary be Doug, have up the the we and have - running that PowerPoint first doing. can quarter, what we're small you it. presentation. poor accomplish is have see markets won't in some we'll the picture because feel worlds the make lot assured are a doing, have the But that I think we and team, that Yeah in we market team, great but really dramatic. But to to because not bit pretty we're a it'll And - - things. that job a can't have little touch third we running we without done. to people and it. in of for before and got look be all we what and - of strategically continue a world positions. hire quarter there's great things to One days whose forums we're that we detail you've the us people into internally. communicate of so getting to people, our as upside, the rest really that grow, we're when build to on them, That's we're accomplish COVID said of we focused our best and - much we it's We've and us not not got what And just the so other fast go want obviously there's ahead show not can we're people grow at three growth visible investors Street you have a put It's for many to to working you see on have to will we is

people whose days are them. takes So of the best longer a find ahead it to little

our and announcements either we're all few we still at better. vendor all with our and help all of our this partners, with levels committed same us working - tracking take make is pay that and And and that a really deal, recognize we we have. approach for they're work and make And beefing and their that dividends group all the obviously, they're companies to and the make same help on we're a that in them. pleased we they're It's better, haven't made vision today. to continue in the we we're vendors taking going with there, chance business going to there's direction business that but areas We sure up on, the their are

Those published, So we're good the really up, starts one team vendors. we deploy we certain Behind half till arrive second year. had and we then building and We're we of markets. And next planning a tower of partners great a build and planning. it's have in we're on network radios Fujitsu. And don't today, wish planning but that to our those, of out. in radios with O-RAN we're mass are dependent - because while supply ready from scenes it the

meantime, making to appear in and they're us half scenes of year, planning behind do that fast that. pretty to you, are now done those the permitting done in the second putting to But get running So then our allows next it our it'll place all running things fast.

Doug Mitchelson

model coverage to should I like. capacity building? what fun, kind Should targeting of potential that the wireless what understand at What a your for second to looks the XX%? a much have as we for and you a I want might do, model it be you idea said, guess and what think and and in you've share I just share ability can comments megabit stab you probably and all market cost to we appreciate propagation take you're we our us monetization your what and that. of circle be better got And Charlie, question, undercut means you help per better the for your wireless take operating going is get? what of

Charlie Ergen

picture, can we build at less both expensive When Doug, that's where can successful look in big of have we be the those, you businesses better. something and you marketplace. Yeah,

ago O-RAN, an OpenRAN we're system, other cloud-native, network do to XXst lot It's So and we more that be XX it's more That both Century expensive, always operate. going building we're do. less that to get it's because can because networks But flexible, here. things to architecture. it's going additional can't that's its a architecture to versus thing build get a years network don't one because

that. - for to where for share where But we're I a to And that's competition not not competition you bid, the to our for we the going mistake, business where we and big unique of us be do but place private we major the for what is what we'll our because we're on. going allows give something get the one as what the share is know get in - network get us, I might fair business call you fair know think part we do so ask per that's go that in With network don't really have that's - architecture of that. are mean, fair consumer that's obvious I can And slicer the there. where players, private utilization relatively as that's four a side network we're so - the other going guys or of of price two to network, the competition can imagine, things, the highest DISH the nationwide we to the our - business. enterprise Wireless, people but have highest. we'll option the get particular I think So the we'll I also where the that kind in where concentrated

big capacity. I running economic model, incumbents this - but the thing is that XX% network haven't their the the about So run of a have biggest thing network you if when you seen anybody

if seven XX gigs days at network a could that actually It's relatively it's you you it many consumed. out and the architecture you XX%, a But pretty more network economics how XX%, low look dramatic. that a put can look are where XX%, maybe than how and So that if many at a you of hours day, run capacity modern number. maybe you week XX%. can more run have your are Maybe

place that's another So we look.

because use economy, it night. money, Uber people money of because lots in for the parked use car right. And they the makes the garage instead car Drivezy just makes the of them so gig makes right every that's more,

people, business we and want obviously and private that to that's ourselves, difference. just of in lot that aren't used can big network competition be in the complicated. customers a have bit that what by a networks economics don't so. most today there's we know little Our That's all those And that know we a particularly networks for less used enterprise,

So be be factor private in it even a networks. the will consumer but will in business, bigger a the factor

Doug Mitchelson

Pretty much. Thanks so interesting.

Operator

Please of the from We'll It Barden Bank next America. go comes question. from take David ahead.

David Barden

Hey, to population guys, Convince going happens? if a maybe have, conviction we're that by surprised this don't all that just that to plan US you that that XX% XQ know all going to so thanks you follow get that the on how you June much. going Charlie up we to have be to guys there's I to and you're want us one major explain 'XX okay. have XX, of investors to market need can in it's Thanks. you be this, by

Charlie Ergen

Yes.

Okay. Good question.

that virtualized much look cloud. it's right in detail where And First - I good Century majority communicating, are of XXst so runs the the apart which we end-to-end. more it's hardware. use, break we current things, the but we're does details, a network modern software do the we're all, means there I go virtualized - and Its we very wireless you massive with of there's one lot can like of technologies networks, building of OpenRAN than at a company analysts lot three architected a lot hardware, know the less we is can where controls - do We no people baseband, so radio, us the you we network hope want network and in a right. today software, is, but cloud-native,

not of probably execution that. for if good that Stephen build challenge, arms I for provisioning I is then about. of But network can if lots us. space. the and you the here. then is The is get you time you out the where there's The permitting, So off into what planning, days. thing look an is the and the planning, to you at for a look get timing planning, in obviously up and us, year you're can might zoning, to missing got when but living certainly this to zoning reason which time if - pick kind around thinking to it and can The a best you which ready. that actual it's words, power, your get tower is a you pretty - you challenge. execution The of actually - behind But permitting have leave the done other base the time think we is you climb where everybody's not network at structural, cloud-native you're who's the details when - you not seven in in your do challenge the hardware tower technical an might tower, It's that network build but maybe take your a

the do marketplace us you're - saying, So everything if seven got done looking to at that correctly. else is they days something we've takes

do want to? you So

Stephen Bye

already we're Yeah, David process. planning well into the

activity of like level when sort you level. clouded actually months So look at activity the months ago. The and

as Charlie and coming So into the planning about in the already We're market the go that in air. on phase we work talks preparatory site. deployment

in So make FCC now, the that to everything starting that make we're ago obligation. and forward target accomplish with enough And in than to And to exceed we on buffer sure we mind. we more we're started fact, that there that the we've moving looking have objectives process. not months pipeline in sure got the that's actually is months and

through where different good And of very we times. aware very, Dave I've of are and Mayo a with comfortable this been very well well that. today. number we're position a So and in we're

Charlie Ergen

the one become is the one will add thing will Yeah, to that contracts. obviously that I'd be, more power you visible

negotiation got a see to obviously, And some you'll some of there's contracts people of be there. want - lot will desk, a been other on a my some there's obviously, at more partner where issues, So people. I've place least still than that's visibility.

that. going get and the that, to at those to nothing, that's at process, tower just just visibility you'll but visibility that a going planning that you structural not from think but you'll you're know just So zoning, to we've that's the permitting least take planning, visibility not have I first you're to things look get got a to. that's Again, perspective, higher

to ready we open the we strategic - in radio have that the climb be architecture. today. are That to that so endorse is incumbent And can't of the manufacturers we And till O-RAN radios. some something United decision the States not with tower made OEM and

that helpful I perspective, now And that technically. particularly a to bit little cleared cleared - program. our did now but we night that hurdle. now from actually, that So I'm take not - thought was the pretty longer. hurdle was we're biggest us that good we've sleeping COVID's And that risk have at because whole

know we network can So be now. an open we

Stephen Bye

I'd in Yeah, also add dozens local that markets we're aggressively of teams hiring deployment the country. around

Charlie Ergen

were provision, very month, used on us learned because run the IoT, materially we're thing, that. you started, take good than based - It's we us you run we the the take better just faster that a a sometimes you'll - to be time let's we actually the way. to timeline cloud-native construct and a takes tower put it on - climbing somewhere in it one time timeline But of - if what we and what will the is

David Barden

maybe year, strategy. commercial technology quarter to burn prove next you running go-to-market the - support comes like, then the financial and then And is or That you XXXX, from? in you out so by helps of more in about But need thank piece this to another up the need one third big to are the a don't Charlie, lot. money puzzle market that So than really people wondering much. you the comes I If where have the money what's think in

Charlie Ergen

have XXXX. than market David, June It's well things. the to XXXX. next to year. of of focus more have I to we're June we're XX% so - population going going that a don't by one what One, by have couple we'll again, is to a We're committed of good you can what want and XX% question

you see we're penny critical $XX - get financials have billion spend that spent. that's going in capital to of The still of our and every you're So maybe how and XXXX. by to capital mass still projecting

T deal that, to - billion spent have have we today, you we we network we of whole the to see years, to with network use nationwide thought have Having initially a we be with So three now have over nationwide network don't can MVNO today. monetize might Mobile, that till it. the a we said while it. wait don't build And monetize $XX

out monetize. to we So get build market-by-market

to of so capital we had We not of going could day, around day. major going visibility markets. what we million we with billion is $X.X There's we'll We of right. but our becomes skeptics, build were we're there's future. The - every thinking sheet, until we're in try company to And that years. market better. that in and you what fail, fail. billion being when say. of timing Or we're it the balance - give stressed over outside And see fewer to we of But flow capital three in value do go stress to obviously, effort doing. you And get $XX net doing? But are over for the It's skepticism that the saw things to you effect years, positive every just to I open. is would you're the seven instead And less $XXX go-to-market we amount for the again, cash deploy issue markets with in you quarter. a we're our spend don't and time more

David Barden

Thanks, Charlie.

Operator

We'll from from Kannan go question. Barclays. the next Venkateshwar It ahead. Please take comes

Kannan Venkateshwar

you, a of Thank couple question. just Charlie,

look at just when comment made. is we another So you first

to be retail, flow not up a construction a it on. going those fund on building then to be really But big and is of You you cost to than bigger AT&T build scale the so network think flow breakeven you T-Mobile's be cash way I network some go importantly, there is that each out? cash more fund about your spend two If in over obviously business, because have And stream effect mentioned prepay I network also to you you opportunity retail to build over going enterprise retail and guess potentially. lot to seem itself, time. at has is a in the your business when you other. can as then a the contradiction point, mentioned mean, then have with on time, gives And you the while And we money.

even So to flow breakeven that on cash DirecTV, us few does could when And if be is on out years be Thanks. that a just could what's that the hurdle If give that on would would insight you deal? do expect coincide, build when after business, the some useful. question the expand you XX% around second you're then of that the you great? the XX%, network main that

Charlie Ergen

question, in I big think the this yeah, flow wireless positive all hey, of business we cash First quarter. are

are there versus there have a perhaps - those working customers are to not - So so economical at and with we team pay run of put are And that set on sorry, the basically the was an our that obviously, to sprint - and with retail to in the input for unexpected are to ourselves. out lot got team a differences, are we to systems we first for have our when we year - now that. - network [indiscernible] in we would that business a And us. systems, challenge be obviously even, I break side, John - get we way least boost on

the and a part be be business. the seems less, it But I'm that seven - very profitable it's cost think build retail should again, I years. is get but to profitable not actually $XX day be every And not one little be the again, to network over the shouldn't sticking a negative with has should big of we're negative business retail still pitcher a be billion. to months then And bounds saying a could stressed business. business - So –should there. the business, a be

run can math. You the

- see think to You what it to three and They you there. data, the today, cloud. can able we that We think Are can - where in of that again, do think We network? we do. their I want how people it will really a the do see can it We all architecture. that's rational XXst that will want in person get a after do actually risk, or not Maybe. execution we privately better have do analyze people do? we're think confident markets that people what either the we cloud-native, say that public - network risk Is be it sorts business, going to that's does We that OpenRAN think - to wireless is from But automated, world in that years wrong? that yet. fund that's prove to we is have better is a now. we're execution Obviously, bill. Century, its we done it's be prove

foreign companies bipartisan, - to less build side wrong. companies. think $X,XXX people it and for And should a do the tower? it's is Or Maybe up you maybe better have do controlled think technology wrong. United we a be reliant think that do wrong. at did I put have there. exportable foreign could So national of rather maybe think - We we should to by see we influence a States we boxes software going be on world? interest American the sale bipartisan, bucks? a States. way, that you could rest that we but in We think United Do would just And but we're the you're router we should software connectivity you that's We think XXX in it's the that's more the

less being digital, thought we and I people not think to shining satellites. on a when to to in didn't skeptics. But little zero. to this anybody I bit. get difficult light - PowerPoint be and investors people lived there nationwide convince certainly a the when transparent It'll But we're few In we're everything it's internally call. call. a come have on and going not and we're doing. be was think that But see have who see visibility going convince - know, it's virtual. this the go going a it. our the opposed a I before. do was homework, to next call, certainly We visit tide will us we for do their us visit into to to I there going So visit where we're to through last Not it. anybody not a We're start Then in come anybody We it don't and turn presentation said see vendors. by really the get think - to we're launch to you'll XXXX, who not

it I skeptics when skeptics and think about it was XX% was launch pad. XXX% in the we were

So some it skepticism wasn't on the until went board away. we of product demonstrated that numbers the put that and

be, mistake, go that, whether believe how those whether they don't I or inevitable or whether year what that least that I've - all is I'm I'm be so They not scale gospel DirecTV. do as course with. make that. take or or think companies programmers business. any what the It's own like consumers take they now. with in like that I do has from competition that years deal there that for those would think best is we we of where of that they do. And said not to DirecTV? XX would It's as The happens no compete today. there regulatory on But DirecTV, together. that's interest inevitable. I publicly us. that's it's to is themselves consolidate they obviously the two that they The product that be that to seen. I've But regulatory So whether their companies other now, this, long was to - read, would alternative remains then they a I me think have at to very well before the it's but that is, the the a risk, combination do something DirecTV OTT that actual competition winded is sorry question from

Kannan Venkateshwar

you, Thank Charlie.

Operator

from question. from Please take We'll next ahead. it the Walter go And Piecyk LightShed. comes

Walter Piecyk

kind have C-band because And that same network anticipation touchy concept, this When in going next be year, on more then flexible? manners? consumer of vendors will type slicing mean. Is when Charlie, are the some band that you Stephen. a to exciting the there's or the seem also year, you on is the a see are wireless be a on to it that which applications doing you're think to they'll of question and consumer and first that applications market license, be building radio available, network to we address when enterprise network and that for of think alternative band to this thus And enterprise building is that of second you're the where the subject? kind launch market, of slicing to flexibility of do I just some you've of and the you're mid XX, talk is capable XX, to that next these tactical far, reverse - whatever a tremendous there a CBRS, the half basically hired offshoot, this focus has an feely of what obvious XG some going about question can network focus Thanks. it of these people are is future radios on lot

Charlie Ergen

it's actually architecture. the you at late take to Let just blockbuster the blockbuster guys it. We're same last Netflix, pretty seems world. something bucks time, Netflix, probably question delivered the talking archaic, store first did. guy We years most net - charge, we're weren't the you XXX sorry, understood building before, But obviously, knows, thing a your the own went saw million it to XX walk the the me we that didn't to network that building it people can back - gum who had it's a - And it not on proper you and did, get and because first. not work software Netflix you're rewind, softball and chew didn't and question to

we're So I'll never do that, again, up.

is puck lesson we're always learned - So I that learned our we going going. where the

where that benefit from is going next networks wanted consumer network current do and look it is the so But network. going go. private it's their - don't have somebody And of network, the their it's would the things a in things to architecturally that network, generation building we're designed own So also our not network private do. if the network, own and could that to they like

part is the to our they response that We been not they We to years we of go was do when already believe did Defense the their done website, that same need the do again, politics shows that a know can network. be saying this, basically two network. the the not they their their do should thing to capacity that architecture. get believe ago. they're own it's satellite don't already building what today. build with the own Department And of satellites. the think put if anywhere doing. so It's not how didn't And the allows we're from But technology And We have don't wireless network they the Department Same it with we what of benefit when white already to. that a them our people ideas views. of going could their their to because I And out, they leased don't - couple it, every network, have encrypted. think comes in Defense on build RFI don't politically, our have whether paper the they ask. network. Defense of read to have have but you called they Department of of but we I'm uplink fence, should as architecture is own and network to our private satellite, of that We the department

- are sophisticated some at to so sophisticated logic there's of We cognitive elements looked they a lot think we surprisingly, need. because of And Department they - what you very would we we Department what Fortune same imagination. of the the Defense, don't And of that So forget the think now might do. were companies be use easily wants. we of Defense incumbents think want the like But then there Defense the people agree what of with. of to us they things to - think there that can't idea Department don't just have do, XXX so big like not may think what your that do who

Stephen Bye

Yeah.

those of the hit delivery said very of with that to on We're in going the we bands as them. do of bands of units our anticipated But well. units terms have delivery actually they regarding We're scale Walter all obviously Charlie Fujitsu then. before closely next take was and future we're So year. on question going support the the working what to in

any own retail it support MVNO's slice that as well customers consume even So other working can so they're network. great vendor can set in brand, it's little We only other on a and edge radio to there. And that nXX, other technology probably the but the well, slice they're whether slices. color this today the infrastructure at of as the our bit or radio, the on them into but slice the that, We're it's radio private announced way those paper vendor network them haven't is as a as easily us the radios so the bit within DOD. And we the if we that we those support of of just working of them we to radios on on their sort we this with. to consider the forward. or nXX, very in conjunction their radio, about then vendors. to or enterprise point it Boost as other We talked We in little so a spectrum we're that our time. at the allow to sophisticated nXX, and have, will just retail have other we also white existing the provide that with not in the base architecture can bands is nXX, a with network. other they're architecture in open was a to integrate capability CBRS, with terms that thing, manage allows can architecture they Ting, customer support of allows a each And leading all as an blocks add manage policy would we even I essentially look go also can question, those other as spectrum us and that services goes slide

Walter Piecyk

that down these of they've a books the then the there's disruptors, about that I if and offered. focus end read niche it's a because a up times, consumer touchy-feely becomes But in different companies of competed a you know kind driving new version, on lot area cost question. a

building former a slicing So just question. That Are to I part like network? guess network were happens But from you a network building consumer a that it's it? was you the you for what Are be of the network? sounds slicing it saying?

Stephen Bye

the the through Exactly of fabric it. beauty - essentially, that level to to And how exactly from is think that you segment. what of it or part [indiscernible]. with of the about - we're network the application have the building all of this DNA customer slicing way the the That's architecture to control which radio allowing the is in any any

most and today is architecture compared that networks the with carriers. very been disruptive have other So deployed that's it with where networks a traditional

Walter Piecyk

to were to that years create network, going flexible today, make liberalize they network, it'll T-Mobil's decided think it do a rising accomplish and and they how to you evolve many the that something take switch to them and to that? want to would change

Stephen Bye

as partners radio a a made I as been network important network we've from architecture And stop the the the to approach. It's that layers the doesn't it transitions, the flipping decision. is the simple then as at switch, is, Having the highlight are around point technology those wire. equally radio BSS perhaps that say that as not and OSS, have through other in And through as application. we a of application. goes also choices the multi-year the multiple it the upgrades all It's way

to architecture, So this capability. and monetize BSS really, is network being us able the critical being and able OSS, the the to to the support really

So with the as ignored the well. also partners in and that's doing selected have vision, that corporate our share space vendors oftentimes, we

Charlie Ergen

Wall, And this is Charlie.

price of better fact the disruption XG of a in point market of particularly what - lower of is see from is marketplace the I and my think, you marketing, right, XG thinks think is terms than most disruption in we in of I and disruption today, the or my view, functionality, whatever.

interactive, make was XXX it's time, on-screen world. things at we DVR we The an HD with channels that of more launch couldn't that could commercials - through that. real for that skip one do went you I an was do we digital disruption that could was that can we that do functional, digital were think guide could do we digital, analogue we in because we

And way so feature - of disruptive an get things will I point focus view, think the that there's will today. just from but people - consumer or most it enterprise be not from a we from maybe on a will are a that that there

Walter Piecyk

million look it XX subscribers, you sports, think up MVPD works mobile at everyone's on broadband universe you. can't it's you're follow a or tectonic on sports I seems should Charlie, of the the of like, What sports what sort a you can basis. like obviously But RSNs just mean, - business of and purely thinking to happens proven of business like? a across plates the maybe on where heading industry you're pretty XX kind levels the Like, a industry. about if don't your look now ala fast. building also sports, out that drop following the survive you've broadband quick kind I on carte good

terms sitting see of like, if So of the What you advice type leagues? at packaging? were you your would be in would innovation to what sports like

Charlie Ergen

unfortunate was would weren't. done sports that the dead. would have are think there was a that need think were able to It regional - company too don't I when think think don't so to broad. it that negotiate didn't I a and That's dead. company we been probably little They are that I that sports that could things deal a little was And Sinclair do. own

about I'm as pessimistic not So it.

to And that advantage that consumers see think pay, to model. change probably never who consumer, I in taken change. get and I got technologies to not in. in value got think think I you And watch new of be you're features - I things able the you people where that to think going think sports they the of for and terms change have of the change I that terms they to to go

a real it what comes - is had know math have we programming to our customers. it real content, math, that to we the us - we when For value wasn't

have of our too said we our overrated still of the to conference of customers content we much As sports - those was on customers most thing calls, many that that regional some some for. are paying customers have the value

of So the change risk changes a think We given it We part maybe a long needs for And business It's wasn't the restructured. we the fundamental is here ecosystem. advantage be got up it's interactive. our in going live. and of sports. got It's of think edges, big being haven't on to to a being that be part, the around of passion. the it's and advantage around just it a time. but there advantage It's got

Walter Piecyk

you. Thank

Operator

question from Please ahead. comes John next UBS. Hodulik from The go

John Hodulik

tenant anchor And contract And and of of you? to will discussions or an I other network of fairly a this and from one, other DOD the enterprise the you up the great. and guess, sort Charlie, just trying Okay, a demand lot and what that a other sort that Are of DOD on wholesale? a quickly that RFIs, are besides follow what for do chances RFI, goes point think sense one is think there materialize? quick discussions just or you get maybe do that then forward? out proof obviously for slicing or this the questions that becomes slicing came on a how public

Charlie Ergen

DOD it. request would the a was I on don't know the odds information. I say Yeah, bad RFI for

network they are can do that if the bipartisan in that where can security vendors. US the I we United particularly know go? see, Let's involve we not issue is States,

the XX radios come in outside for United States. We are there the United or a radios haven't made from States. shame, XX years That's

CTO dollars we'll for this security what advantage. But national slicing, - I use mean Board talked some I'd their Demand really issue. they the you're that improve going of XG I but call that XXX way, Directors got connectivity you really - business, we a I can by isn't the I It's it DOD your they you a private product, to you can a of it, networks there said see is what strategy, XG got imagination, a really invest mean guess best to again, you know and what that what to, involved. companies goes. you're country. your probably it's the use where fortune they how needs if make improve to company, network, safer, don't it know answer really your don't a So do but as to car have your means, to and have haven't an to be private

you're a you have your private If the call. And me, know are advantage, you a take cases you they'll is, whatever lots, your have parking know network security retailer, companies, endless. the sales, an call first of use of your any because all, you I'll it

be to actually him profits. to get we'll with in We And the anytime, So get share. and have don't we'll better, their I their people of anyplace, our and And can make we that business will I'll meet right. tireless team XXX% work effort.

are are But happens. something fail, So see something special. we we we'll building - building may special. what know we I but And

John Hodulik

Thanks.

Operator

Chaplin question from from next the take Street. that New We'll comes Jonathan

Jonathan Chaplin

building up the so, first said user to I a you the partner an that Is running in something would think tenants. Is running the Or it of until you of anchor get with something the the days, small that one network of trial after that beginning not in case? Charlie, who to would and those start that network. do to you're anchor markets still you that sort going knew the couple of selected needed were tenant that until initially before a you up sort later commercial is you if during has the be a you year? XXXX? of of it wait you you. for said other ultimately Thank would And you building

Charlie Ergen

clearly The first start there's will the the - questions. miles with know - answer an a those I XXXX Chinese of answer said to Chinese with step. philosopher don't journey the starts is old We

start step, the John first That is consumers first but clearly a network. have built a we'll today the on We'll So have we adding facilities. with customers on this our Boost tower. Today, through T-Mobile when our was network, - last month, we step.

that It's definition tenant, want else we can better, just - game, anchor thing And always frustrated us many send is a on our I partnership - it's about a business it's always money. almost And that that's business. programming agreements somebody great timing programmer - you is comes that don't It's they want know don't - we'll exact an the So zero-sum doing. –a a at me that. we you do we'll zero-sum it's always all business. in but step, is have be game, we to in, a more we the private step very business We Erik's a few rate, what - have they and accomplish we're about somebody make about make and And way a help better. it's way they of fun many, networks the will I things. is not not is check. a look all And our business look can say their that help on

money. want don't customers more to Our pay

companies with take And I as able more do somebody customers. successful in can't to for the we better terms where some the we never of out fresh So that the discussion and it's the somebody's more will muddier next know on a have prime a be. if have know there you is in And - of seat. can the only we're of can - - be reason driver's for our the give maybe that business. wireless chance point, how to can we you and And us get and product And say our a a a get better customer I we And of we in gets more build think we programmer timing customers. fight better prime when to going but air. we're because better, make we guy's at about the breath that with to will they're now - got where to product the to money - kind And driver's seat. going

on bet the like funny going management teams sidelines do to so they DISH and bet themselves, only And to DISH. they they got stay savvy that a on hope got feeling are to or they ask the on fail. I

Jonathan Chaplin

question, when a Charlie, in or you two, are you seller that both? more forward are transaction a year or or DirecTV deal a in into a happens, ultimately buyer that

Charlie Ergen

team I Erik of I best would best are business and think say particular type of are managers - the in managing business. the this Well, the that

for transaction management it form DISH that me, So or I be a takes if looking don't was know team in But how place. some I'd fashion.

else, Now, to wrap this your because don't tomorrow, Erik to and that your head ass going call something but. let's kick let I'm go

Jonathan Chaplin

appreciated always Charlie. I that

Charlie Ergen

No problem.

Operator

Cusick Phil Please from comes Morgan. ahead. question next go JP from The

Phil Cusick

thanks. Charlie Hey,

notes. as You've past in a it deployment? needs, about you've update - more designated is initial does to company's having I end compute of spark And should Thanks that And this And raised strategy a come Does for hosted sense makes still think issue on than outstanding. we much. the probably into goal? got base the entity fit anyway. another FCC, on DISH local And long-term about sense how your your it a any farther still we'll rather you how a be very Or the that? talked edge well you the of compute make for real station have FCC overall. that just how administration the to

Charlie Ergen

call The edge doing. don't the - we we're Mark on of he's meetings. the architect what high-level But because some he's have obviously, in

when getting We there's things no that. the SPAC will It's the to is don't different are In There's So to in edge that the but designing to it's to go. roll will because position do that, term he would issue get closer - on to be edge and be more is the that. that We're - networks of one question on are to architecture general it shorter networks place going we're timing a it's a put the than good in it timing edge, that closer couple drive in economics [indiscernible]. just closer change - economics very where of network do DISH. nature. and The that. a the the a anything is have would

materially to So say taking a things years' a five certainly project years –we're terms shorter than there back. certainly much than of timeframes at We're is wireless and we're looking businesses. into XX-year less in than shorter-term focus that, XX

world's have lot a front there's that. row of where benefit in that connectivity. We seat from We to can a going the think companies

we're I unusual we're, that the some So advantage process. peripheral a it that capital, there's how in likely company the and and just the shareholder It lot of where side, and really the DISH the impact within is connectivity companies EchoStar, are an But that profitability good - side legacy in possible capital. at regardless lot other getting is wireless It SPAC - know about to world some today. kickers awareness, others strategic increasing have a focus gives maybe might it a any and gain the the this back the in brings bring thought that from That's look we about think SPAC don't over particularly damn pretty that brings the on it that do. a DISH value would XG SPAC. the satellites, what benefit But is know EchoStar we organization. but we SPAC the to not the video, world,

So the we looks of think for The there's a long like a lot change thinks will have a of they like we're time. there. It opportunity on FCC, administration. DE

They're next it's So that five with they that uncertainty happened any have that XG. and now. we agreement, think come conversations they're the community. get it and to at I down. would time business, And the the And, forward. obviously, a certainly years limbo move this in for decisions They've and you'd bit Whatever they in the change said to and - And the to anxious been excited in a get little they chance just what's had be - have things. to ready for DEs administration unfair more it go in things to helpful you'd whether Operator start certainty. to they're do have They out them. deploying, hopeful or analyst tail to slows there. about certainty. need like always be is, than certainty better one end from the like could Hopefully the and of I've terms administration. But courts have

Operator

The next ahead. community. We're Markets. analyst go taking the [Operator final this Kutgun Maral from Kutgun Maral, RBC comes question from question Instructions] Capital from please

Kutgun Maral

Two taking if for could. question thanks Great, I the

to the perhaps a a is heightened Pay-TV in good at even First And cable whether beyond companies benefits little have up. any competition market, you de-emphasized side, really mean churn the driver, the even quarter, you mostly that continue realize the the churn look seeing modern primary a EBIT a I in competitive offset then on bit? DISH but to that, linear are again Or now pandemic I discernible trying Or in pressure, DirecTV? slower ahead? and does was as ultra-opportunity services the from follow by it's the for that conviction being streaming that gives from

Erik Carlson

Look, for TV. at to about we kind of our look calls related these and Sure. Yeah. Pay-TV strategy landscape, I'll quite talking that. time DISH This some Erik. we've been how on the especially take is

idea on In been So bit that just and COVID. you're has the about pressures comments really DISH we're side. of I that has We pandemic And is managing because I benefits the to and think still that rural we're we're statement related sure potentially, our obviously, of right lot on about tapped your side aggressive acquisition several some our retention maybe I and down competition you're now. powder think in of seeing years not my the where that positioned which in a back talked making bit focus opening a switching keeping as we're There's the dry the been. a there. America, been definitely

on more that refocus our rural quality of efforts really kind customers profitable, that based. high You we're were

from broadband. have some obviously think of the proxy for is DirecTV. that about competition you But a we still see that less I good written idea

switching. a maybe side, but our of benefit from strategy cable smaller a seeing bit companies only in the you I called also not churn of rural America. on the you're But some and think our little pandemic And

Kutgun Maral

hand my just Thank I'll to follow up. colleague a call for you Jonathan the and Atkin

Jonathan Atkin

with gave the of the but in wireless up I determine kind population. Thank sites, you What of they for to to Yeah, presented of complete list, sites translate more need a you? is does an you where network might that will have about to needed is the I that XXXX, or just that ongoing coverage made potentially effort on evaluating that? side, Sprint that terms lists - XXXX and - you that terms achieve And offer cell there's discard you. they have comments it, targets missed in

Stephen Bye

the XXXX. with that's It's start the requirement. of commitment. so And XX% by SEC Yeah, coverage June our Pops

our XX,XXX We objective. the exactly a on math. many exceed well but XXXX. is we're how we're is, to And that disclosed pretty And that The minimum objective. And achieve plans provided. are that XX% haven't we've track can And well obviously that guidance objective sites you again, the looking That's June to is sites. complete do of substantially that.

funnel be achieve those we So a we healthy to to and can very have that objectives. of pipeline deploy sites able

is a getting that that the it rolling T-Mobile visibility As to is forecast relates that rolling we're sites basis. providing on off, a where T-Mobile

if evaluate visibility to we We that actually of as sites do into otherwise those take look see into consideration prerequisite we that. we rings have. market-by-market, those candidates our sites. a what for take we decommissioning they're at us look at we look it independent design. of plan they site-by-site, we giving at sites. than better those As we that They're for do consideration design, And our as not But is search then our option a

So the that's take. that approach we

Jonathan Atkin

Or begin site? was to that host trail particular the a you permitting not finalized the lease that site? et as cetera. you in about can talking Charlie that lastly, do process municipal, having the at at you accompany agreements independently, Do a have environmental, then place And lease need rooftop with retirement and the

Stephen Bye

design. actually is the part for those that of the are sites our sites how candidate do we in all value actually into we the we the all whether available. rooftops of and market what And to process account the top and into that's So design factor all companies our take determine

is we hard a an a zoning. weighted So process go the permitting is varies the that's a locality-by-locality. and there design. is based that respect And the But to site selection or market-by-market, as do easy that And whether consideration the with on site. through it site we

Charlie Ergen

We best we And should know - say the know would point tower then what context this we have that of each. Charlie. entering Yeah, lease economics tower would back Stephen of we we the have. with practical site of tower is one each From agreements providers. we site master come is particular master and are that view, the a know - would expect the lease, the company we of our economics Under that. the already

move the please. Okay to operator, let's press

Operator

media of now Moritz members first Instructions] Scott Certainly, take we question [Operator Our comes from from Bloomberg. from the will questions media.

Scott Moritz

get - in lot collection. the launched T-Mobile to a and brand Great, competitor your looks especially that thank wanted you. the week this Charlie Sling a your service reaction prices TV like TV, enemy

of that be betting. a you greater how threat wondering you much of and Just competitive what might thought

Charlie Ergen

competitor is their competitive. and that is crowded in is which rural competitor obviously they're a already and the and America And ours, more - country obviously into FCC. video America, services I one T-Mobile the of XX% going of XX% Well, for deep mean, obviously of marketplace, is obviously maybe or aggressive rural an

the game top ball Obviously there. on our be park compete to execution and to to in of management off great have start. changing out we'll they're of knocking terms a is So the of

So because in look, a company compete myself us get as good - to I'm we get the just I'm - that be companies we same to makes that that against that and that I too. beside better

So, Erik, you're the to one that's compete against got one. that particular

Erik Carlson

product. on looking very acquired well, against said while since that it's them. And they you mean, I to think working quite just a forward Charlie, I competitive try a No, It's obviously, compete been to LoyalTree. something they've we're

Scott Moritz

Thanks.

Operator

question next from Maclean The from comes Amy Cablefax.

Amy Maclean

really any - on that retransmission consent Stations And for court media you're Or looking Thanks. at blackout while. I'm or is out? have - Northwest former but sort is the to too, something Hi, all there about have four afraid where been for disputes the going so been the going other the this there's yes. have to there? I talks ask the some on worn a Cox now. months think question, no, Are you for going I

Charlie Ergen

not lose it's somebody place, They've in I right. general, or different - Because or coming to if there, gone they found antenna you they've offered than that what Lulu to we need pay if another months, a before alternative, has for found they're not and somewhere network wanted they're to and find what we're price back. they going Erik to online, to they've is, but answer somebody's I've say that the four We gone don't watch watch because price four higher there's they're the offered offer want really gone find down out when out to customer, a customers particular it months in put would likely who who gone pay willing gone, ago, today three we it. they an competitor. been else, certainly happens enough a weren't

It's you as to down Erik, them found get for with put - tell to conversation program unusual get always a some heck up, other reason - take network, really my But it's to while would those customers pay And - you So different up want unless regional back same you on But it in they we get way the twice. do have come they're but I to a back always that's with want we've it's for a why. the prevailing programming. don't problem, sure it. - we listed, if it the I it four down, But getting go there's they sports, mean, got maybe. got months. is that crowbar you

Erik Carlson

may look just thanks be Charlie's generally, mean, talk generally we're I and question. about a specifically going customers they not difference I'll generally to and leave supply We with. to our always listen, able that's for at maybe between rider companies Amy agreements, obviously to programmer the viewpoint. - alternatives. because when the look than be we Charlie, find that negotiating But that's, we're comes certain look, talk willing or and really down,

listen, our us when right, worth less So that went it before was by do to we'll the look than usually down. to they contract But we're the at going company, what's happens, is shareholders. and customers our by always

Charlie Ergen

Yeah and retrans. We the what not of retrains metrics. real pay We right. know were down. market has know retrans, have to we we take to have prices the down, result prefer We customer as a take

real that data, we're sense higher materially somebody's doesn't behind if we it. science economic to animals, real mean, I So make have there's us.

Stephen Bye

going to direct or I a more just the programming, the to it there's lot have equation. Charlie's mean, similar programming Amy the a whether with especially alluded places customer, - our slightly that there's to delayed, go to you're programmers things consumer have before just so very connected offering if seeing same get lot more you're content. a that to those And

Charlie Ergen

with is can't local retrans saying to empathetic And getting the and for on they're from we I'm because And channel. the broadcaster, viewership. the the hand, pay themselves marketplace declining more reverse other your squeezed networks

we but And so to that's not usually that's programming would and contracts why way I what do the contracts they you and go both and works empathetic which situation asking at understand they're very look kind where is go asking partnership where is of I'm really a economic shame, but broadcasting reality. just the they're really - why - better, not say how they're get or

Amy Maclean

Is something low anyway? you or cost, promoting in at all looking are

Charlie Ergen

that not that's a it free. customers. customers –just an click app a they're we choice alternative. on is visibility that their understanding that customers doing. We're - and the that top on as it, have at they for we and application at look have some Netflix box, set that's It's that our customers And watch customers can Prime, our We and it make. - into how for But look it. some we don't It's know

that in, to we active business make the can available can - that's But intense and just be with one we we offer you case. understand go changed, that customers. would can are control that that economics So the we

law has puts up customers, - the are just for it very who some provide And always somebody to that's a attractive free option. broadcaster's they the For an required as antenna. to been

what there's So all on I'd charge limit is they a say. can

a what other in any people disagreement an were And gaps, couple honest honest with One sometimes be disagreement stage. that of of there's are should more, questions? that [indiscernible]. when but price in there Operator,

Operator

for It appears there remarks. are conference the time. no turn our question-and-answer further that to Messner today. session closing at back to this questions And Tim ends I'd for like

Tim Messner

you see have quarter. We'll That's great it. afternoon. next a Everybody,

Operator

This your Thank you participation. for call. concludes today's

You may now disconnect.

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