DISH Network (DISH) 22 Feb 212020 Q4 Earnings call transcript

Company Profile

Participants

Tim Messner	Executive Vice President and General Counsel
Charlie Ergen	Chairman
Erik Carlson	Chief Executive Officer
Paul Orban	Chief Financial Officer
Tom Cullen	Executive Vice President, Corporate Development
Marc Rouanne	Chief Network Officer
John Swieringa	Executive Vice President and Head, Retail Wireless
Michael Rollins	Citi
John Hodulik	UBS
Craig Moffett	MoffetNathanson
Philip Cusick	JPMorgan
Walter Piecyk	LightShed
Jonathan Chaplin	New Street
Kutgun Maral	RBC
Jon Atkin	RBC
Doug Mitchelson	Credit Suisse
Scott Moritz	Bloomberg
Amy Maclean	Cablefax

Call transcript

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Operator

Good day. Welcome to the DISH Network Corporation Q4 and Year End 2020 Earnings Conference Call. Today’s conference is being recorded. And at this time, I’d like to turn the conference over to Tim Messner. Please go ahead, sir.

Tim Messner

everyone. morning, good and Thanks

Officer; We are Carlson, Cullen, our Erik Wireless Chief Charlie of Head EVP of our today CEO; Paul by Retail Network our our Rouanne, Tom Development; Ergen, John Orban, Swieringa, Corporate and Chairman; business. Marc joined and our EVP CFO;

subject statements first, statements We we responsibility call this historical for make updating but to risks, We of fact forecast. through forward-looking I’m to not constitute historical some statements. assume are other and results results have could remarks, our and run that during our that going no our cause from opening to factors Safe Statements uncertainties are Harbors. materially differ that forward-looking actual

be discussed to filings. filed FCC For more information, during me. questions like participate CEO, FCC’s please will potentially any over Auction refer to on anti-collusion to Erik for for our factors it answering That’s our XXX. Carlson. auction an not that I We in spectrum application turn the a other call. as it bidder risks we rules, to and to Due the SEC would and today’s

Erik Carlson

the you, throughout Tim all our well. us everyone. of has we face the a our plenty responded leave the opportunities. I of appreciate of your communities This against I And mind and I our have how proud year. pandemic hope for proud questions. into top safety doing to our obstacles with execute I serve trying you team, year has and in today. am turned been comments and you of are am goals being are and as and team everyone and kept brief the the how customers we welcome We of also DISH we Paul year going thank our Hey, keep of for time

the and business Boost the have in entered acquisition the accomplished wireless have Mobile XXXX services we base. Tucows solutions their Mobile to lot we utilize partnered we retail subscriber with mobile We Ting acquired a with of and and

past over implement business pay-TV X to worked retail business. side same the we have on Now discipline months, the of wireless the to have we our the

customers new grow plans making plans, the offers, business XXXX. have been shed unprofitable introduced and in have We to

we strides addition, nation’s providers, great first with software OpenRAN-based signed companies. the contracts In In broadband cloud-native XXXX, made network. equipment building on tower manufacturers significant fiber partners, and XG we

We and progress the have updates charted course forward throughout on we to great XXXX year network. a our for sharing a look on

solid by presented a This despite and by discipline DISH was headwinds TV. TV execution and in pandemic. year pay-TV We in the both also SLING the driven had our continued better

income profitability. largely for than changes efforts to $X were revenue customer integrate a services focused wireless our advance and are decreased products service our We efforts, from efforts. and OIBDA. key row fourth brought continued price-to-value the our those with fourth the best to highlight the in available a retail great by offer third our lines recognized approximately billion to items by our We than better increased to numbers fourth from year strive In our ongoing more quarter. with in operational like we quarter, unprofitable quarter, customer to on subscribers XXXX. due customers in number With would for customers wireless we several year satisfaction We more being in technology, providers. J.D. and a reported in operations, by we the customers as and the billion that, relationship the to for net wireless enhance our have of revenue XXXX $XXX business $X.X net Retail Power pay-TV other value. our subscription strong with one shed and for I nearly through XXX,XXX few providing and million. outstanding And across And a make

quarter, determined network by is the last mentioned to MVNO. I our in As profitability part what an pay as we access

network, owner profitability that space. own will drive economics. begin our the rollout be to retail competition disruptive we drive going from benefit to That’s to more better in we allows As and wireless us

In for providers addition, efforts. and great with Everstream, front-haul backhaul last QX Since like we and Segra enlisted call, have strides our our support. Uniti Crown, made in network wireless network we Zayo, fiber

and Crown last with with agreement we towers month, We a Bridge. Castle for have Vertical reached similar signed just an agreement wireless

Mavenir Qualcomm We with and signed an for utilize services and for have XG announced agreement with messaging our platforms. XG to microwave a transport cloud-based deal Aviat RAN

completed due also of be and us primarily XG With Tom nearly down our available in in for wireless approach a our quarter, landmark is are have with Mark December. XXX,XXX. and us to They and to in-depth the minutes. performed COVID Charlie, wireless year here progress year-over-year given regard the validation few are XXXX with in environment, to current today a to our first to and DISH it. more We well, about activations are talk gross TV going

impacted perform stated willingness and home. I like some technicians allowing event-based some our in tactics or As cases, direct opening before, respond services in to marketing sales to the customers’ to mail crisis has their

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

in However, acquiring TV profitable anchored and long-term been customers. retaining our has strategy DISH

path. on and of more loss quarter, focused TV we base rural DISH subscriber remain that We to saw we been and higher credit XXX,XXX. net have In customer committed the a quality

TV Paul primarily that lower more a detail gross moment. are bit on to lower going rate. result of a losses have the in TV partially activations, DISH new is subscriber DISH by Our offset churn

room in viewing to subscribers. grow, quarter, programming like the year. XXX,XXX to still TV, SLING a the experience said, due delivering platform. We we the to to experience, to titles. DVR that commentary half made we hours and collaborative we XX and of helped on XX we’ve on that, we sports primarily and to vision. to Party many new return on customers gained to of Big focus Watch compared transformative library in added on-demand but for we’ve turn of year I and the And improvements was our the by and great launched added lot approximately also while is This for Turning to With considerable acquiring the have am numbers. increased year that And be the realize work we the it XX,XXX our do, SLING a enhance of the going over are it and half we encouraged the back little first is to subs added fronts the recently, got a both DISH and profitable got continue resolve Paul focus to to to over TV. of free we and an going storage. most exciting retaining XXXX With TV SLING the

Paul Orban

Thank remarks before for you, it questions. brief quarter have open the on we Erik. up I some

changes made our wireless we in the reminder, for third disclose a our now As pay-TV to segments. reporting and quarter. We results financial both operating

our report Erik OIBDA In segment. units: Since we commercial and for will had our results I retail overall wireless segment business addressed results, commercial measure wireless segment each a are our addition, XG disclosing on now a of operating we two for but color significantly pandemic little add as profitability COVID TV. we will subscriber report subscribers. network deployment. impacted The subscribers trends, for DISH the

of and/or quarters, temporary our subscriber on ending XXX,XXX previous discussed were relief. removed these rate received DISH count. accounts QX They As were TV pause put from in

gross added and subscribers During XXXX, were Of accounts of minimal activation. back came of temporary no being had cost commercial a end. these those XX,XXX or or remaining the relief subscriber year. rate without ending accounts, disconnected restored to during with service count subscribers as the These counted XX,XXX our

quarters. in restore commercial We accounts coming are remaining hopeful the the of XXX,XXX will service

be Companies industries of to evaluate and and the that in customers However, the certain includes amenities cannot this. we hospitality their continue to provided the airline pay-TV.

consolidated quarter, fourth are the million and pay-TV $X driven generated over to to OIBDA in Revenue compared OIBDA significantly. during billion revenue wireless The our the and financials, by acquisition. the generating was $XXX to the due quarter. last up increased Boost retail both increase year, Turning

segment. details each the of Let’s dig into

quarter by in increases both partially by pay-TV DISH to the in Our higher SLING. and due pay-TV lower a increased The price revenue increase ARPU for fourth driven mainly subscriber base. offset ARPU, was

for what COVID. cost for decreased our settled to cost-cutting we last compared quarter had just was positively million, million, litigation TV COVID. per discussed $XXX were quarter. our by in a SG&A to impacted $XXX per lower quarter ARPU activation as initiatives largely than DISH due less benefiting the to accrued, year to last slightly expenses which We initiatives fourth the from SAC increases cost-cutting the $XX of equipment subscriber decreased activation. related $XXX telemarketing and the year to and fewer our margins SG&A additions Our result expenses for subscriber related

for revenue billion, Now, QX OIBDA SLING, let’s wireless focusing DISH quarter. unit. on down slightly wireless we turn retail $XXX and retail $X.X subscribers. business to profitable Service million Consistent are almost the from with long-term our acquiring and was was

are in let’s network OpEx invested given lastly, the enhance XG and economics. look million We quarter. our further $XX profitability MVNO over fourth We to of and CapEx our operations the our marketing, changes currently during in making process to deployment And sales our at group.

as deployment. We network expect up substantially CapEx we to XXXX ramp throughout increase XG our

licenses Auction During FCC QX, final XXX. million the in the flow payment to made of free cash and $XXX of million we generated our $XXX for acquired

convertible X% with due am December, marketable Finally, XXXX. With notes over quarter the I $X.X that, We issued to comments. of some securities. in of our Charlie turn it approximately to billion we for ended billion cash and in $X going

Charlie Ergen

in a really year I get morning, XXXX but you toughest. and is then analyze something if – focused rearview Good the the gets was and us. don’t can a business. your that really want you always to very I certainly we year look years felt I our we And it’s of obviously, in transition did us. remain don’t And for And you have business make I dramatic It’s that building one out don’t the talk point to transition when for and think DISH grow we transition jumpstart, lost. sometimes Normally, on time conferences we third through at had a really have a comments not that everyone. business. in year I XX in transition transition transition, mirror, can the get lot always successful lot, But way. And the my can you a the time

years us, company distribution a stage. transition and the of running X out funds. survival it of XX% really took get to a survive. XXXX, companies out out in the when we business, have they started was probably go business don’t idea So good go because of it the transition company from actually And was just companies us the to business retail – of make the to for about a Most of past

over that the Second us was is business technology we were that there big in technology experimental – DBS we when big dishes. transform into dishes was transition was realized dish it and – took that, that decade, a the and going little called transform to technology to going which a

that the with satellite, provider way to wireless critical our wireless construction go for our put satellite best quest decade-long to who around transition over and probably We in T-Mobile with the were world. launch pieces in because of And enter build purchased years approximately network and we a a us executive We first X-year launch over able long-term go of of an the so accumulating to term world’s with unexpected millimeter we finalized compete the sheet. with was and companies over quietly getting last took XX balance We on and the in have in wave Boost relationships year. place solidify year We in a megahertz building is $X our in and And the not network. billion mass of XXXX And transition nationwide of XX was which the the all quietly an to spectrum the in purchased with low-band CBRS megahertz cable nationwide, spectrum or XX the technology spectrum, a to had acquisition XXXX that of cash megahertz compete all our we so year United number team do. vendor retail in finest spectrum industry. of us, of States. spectrum with market have And XXX. MVNO and helping key – are only digital

we it’s as need leads that all have fact that this we to So, to that build everything the us, one-of-a-kind – network for it’s enter XG and XXXX, now, execution. we now

And there focus go to through it’s all about you us have certainly significant So once we you for are get transition as on stage, the execution. – execute. risks

lots then but all put execute. have it make got to the to to And And certainly substantial our it of it going And that will can work. risk. – had We certainly we to we has be be together there problems, company, work There network. always have overcome deploy to is has to always company and the that. team been focus a our

execute going we going I our cities So, have confidence that come. are of that more in major quarter degree to means That to the third of and we end a first the by are XXXX. build to

have we transport, They to And going engineers still because have and continue are are – wireless name a and they we our really, with are work cloud, We something just great orchestration, for partners still are have team. engine, still this want company, few. round to we that to out really sure our going have building special. we rounding out we to we where come vendor making

So the today. that. end we cloud the that special will And continue at native, virtualized we world going network day, have really to doesn’t this are in XG exist to the OpenRAN do of really

America an It’s was are XX analog. ingenuity first years. the no with States, wireless last video with can’t our is from United very our that actually start Wireless networks really in building and architecture view most the reason there our are not bring continue partners lead. it’s focus been the hopefully rodeo. to to help – digital So, that will confident leading actually haven’t in American American of of we companies And world again and point similar the when upgraded

the has example, virtualize better is side. today main software with nobody the hardware, you Apple’s two not United has and you operating an the world in and a handset in Nobody the you that has know As cloud and than in Google’s States, Android this you the when had do companies iOS nobody what better United better company States. network, systems software, write, the – it

no transition there upfront this is can’t country little The in is have business. of isn’t of So those no reason reason that and dish important had cable is XXXX we very is in a a will had we same probably other reason probably that the there and be be over to DISH we in went XX company Today, business, to had we things. we that and to some competitors part lead that competitors, two DIRECTV. going

In fact, with own compete our very we suppliers.

is So, that market very competitive.

in seen X obviously years. have last You the the trends in our industry or X

will becoming vendors probably the We customers. their in But expect trends a-la-carte are world, with one is four that continue. we The world to an wireless competitors. of directly those world going

consumers. a consumers than And just network companies $XXX just we includes compete. three lot and their there more are what entering competition to go is there with million So are a about that a better business which handsets, it’s it’s can out not do, XG for about network or

we with questions. open will So for that, it up

Operator

at Instructions] Please take question our ahead. [Operator will Rollins go you. from Michael first Citi. I Thank

Michael Rollins

Couple morning. questions. Good of Thanks.

see SLING And industry, it with unleashed that’s the grab be to side, you just curious market First, you are not the of XX for I wireless the of could distribution surprised that plan? provide secondly, was And wholesale is business, dollars the additional context focused share for side back SLING cord-cutting next Thanks. consumer versus the the something XG trends emerging market? are how on seeing are what on the over that of video side in on you in business if addressable some you months? could holding more business there the the

Charlie Ergen

one? start don’t Why you this

Erik Carlson

of point, and and are XG the delivering with also the for that SLING his technology. a it in question to Erik. partners Thanks, is we competing maintaining Charlie. team cord-cutting turn has I Michael, experience good I distribution like Charlie Look, I largest opening of will SLING perspective comments, well over the will a but question. start kind Yes. then only on customer We price with is this accelerated. now mentioned from mean, not value our from and feel positioned, lowest some side. the

Now, we we a and a our be of to unique to services, is good of will on that progress order position in But whether etcetera. very provide in packages make service Disney, based on do services on it to be Peacock, some have which last latter work end larger would have SVOD we year. the complementary continue this we Netflix, a two, progress and SLING at the on to made year your

side. So, I do on think SLING work have that obviously we to the

there a I is think mentioned, world customers, bit happening. of a-la-carte as Charlie

be some back. there aggregation will I think

to positioned bundle nets kind fulfill with quality some of a from providing a there. unique We out cable are SVOD the of competitors services well proposition, of the

going other important right. and they that the we at paramount. And very expenses be SLING whether uniquely a antenna content set-top think All acquire or service become local is customers that’s would boxes thing integrated choice, now you to retrans obviously are if front, to is off-air Access, which right service it like cast highest on an the do will most And well a that’s services, like one the one to giving choice look is up and CBS the of rate, we or how at channels. locals those the I of low expenses, is that provide well-positioned them, our

is So, the think progress And really can our to I partner acquisition complementary. make and strategy front. with that, on we to become there continue

Charlie Ergen

network were really one of the a there. on should stumbled actually answer bit with best technically, I have We quality all Charlie. We at you experience. a just while this share to more of we Yes. maybe was part market. our being the but got SLING. little the the This that’s user first with complacent. a first, I market first year. agree our a We the little And upgrade of – premise. as we It’s taken but just – bit second to it, will the little with is question. comment half I’ve done

for improve. see But it will have to how should gotten That’s sure. goes. have we room share. So market we we more And

business have but network you we the a dollar designed. today where to side, is the amount On business, on don’t give our

things from Let’s talk different about we the do that current networks. three

First O-RAN be an network will our of all, network.

it So, the that and radio. we separate baseband means the

matching flexibility, in and that vendors flexibility a and So, one current us more and lower American content more off-the-shelf have. mix more and of it not gives cost us and radios parts lot like and end-to-end controls terms company networks

We are are – lot We more more virtual. we a software do than hardware. virtual with

So, big-boxes that runs become things it network those cloud. power, of in of cloud software. means a are which a And we the native, use our lot lot means

but that with they do that. make private and obviously the a make up automated companies where network also we an opens looks we choose private marries Now can why they data also control important network actually we access techniques get it our can our they they can network networks is modern our what their their basis so a open network – better, also call and their use that and have so machine and like up analyze to and artificial that own to because we what on own we business, that network to what they can we can cloud so like product enterprise intelligence, our networks ability so important? that can less real-time, so learning call product, data cloud we better our and expensive That’s actually to product and can we to slice and safer use

share of forth is what question handsets we lot are the business and so as to nascent that the well a on look of edge be your at so but a market business so So analysts to today in be and we going it leading changing you part is many in – that business think is a on, your taken the of and be how will sense are that grows. our going will have, enterprise handsets I fairly

Michael Rollins

Thank you.

Operator

Great.

from next our UBS. take will at ahead. We now Please Hodulik John question go

John Hodulik

just that, maybe Charlie, strategy the to for the in any you along is million. looks many lastly, evidence guys driver one or or just And maybe milestones that the buy cities transaction how point transaction It behind at the should follow-up, the metrics in $XXX for investors Again, are year like that Great. and at thought would end? great? just for then this year fourth with you Thanks. executed that quarter be [indiscernible] process the to as this on look targeting plan about Thanks.

Charlie Ergen

that. to am second part I take on the going

Tom Cullen

a so that. more is Yes, we Yes. the their Tom. interested there down did it the one in both John, not parties bought we of a were quarter this and was due position just where in fourth transaction that than DEs, is with executing, transaction much

Charlie Ergen

Yes, they to a that. put do had right

control. was a that’s our what So bit first And was... part of the then the of second, yes, the question

Tom Cullen

a big we open up milestone is lots to we are been, focus reaching obviously obviously, metrics think of operational. our just because going as complicated. problems. where to is experience probably and we my city that. have bit and we find I milestones then doing city, That’s up going it’s first on one and that’s people for will our But actually not out our major – we will be have go first the And every has internally those, of through

We will drop call. a

vendors Something expect. to work that’s that didn’t is then wrong to how going find together And our team we go problems. solve our where and out those we

the that by end major So see first you city. the will third will quarter, see of you the –

be doing first a in, month meet milestone. population the June to have of I metric you United quarter XX% of on number we focused cities don’t have will We multiple and the but XXXX for the doing FCC year be States other we a our will third after will every in cities.

Charlie Ergen

see you can But have good whether then if have and walking you at the fix we – third be is of quarter, them. we a by And we them we will and end are how and for And problems a will will crawling. So the then will work how sure our going of all not feel the for phone by in see to the be able how and is the and see to or good be and hopefully, we be. we first city, then realize, year. going not running architecture good to be end will execution up we are get our network the take and

Tom Cullen

team as on call, the around around activity Dave underway is mentioned John, country. many distributed deployment of a in last markets built in the out and has zoning completed we markets permitting he country. and the The RF planning have dozens now

number of activity on Charlie So, markets as now June just milestone, very XX% the the position said, in we focused the level to But not the milestone June ‘XX only high. is a are final we clearly, year. very, XX% ‘XX. end this of at by we are forecast We towards the vectoring are we right – not really of but

Charlie Ergen

up we to the next-generation in, That’s of to will we next that’s go when in right, what’s second us quarter generation, a we was radios be extra form. networks? long but we done, them And we to then our could radios, O-RAN Fujitsu to will We never where as help others an with went to long-form and standards those architecture. to John, start some weren’t just it and and of to the there to built year And everybody that radios with going non-Chinese a current could get and has soon coming have – ready us get chose any OpenRAN. deploying. Chinese, to providers was as have And OpenRAN, what’s the is now like never we going start and – the we took Huawei. else MTI were And the in, that go done compete you network said,

John Hodulik

guys. Thanks great. That’s

Operator

Alright.

We ahead. next Moffett will from Craig question Please at our now go take MoffetNathanson.

Craig Moffett

two Charlie, I questions, if could. Hi.

then perhaps First, then lot to a number that? thought to advance? your than overall us that, first did go tell before strategic your market done security you Would rather in you of decided adding when ideal related But a should time and on read rather Is just – markets? with test the have into relative update a and that financing. And process you a add wonder any it December, thinking in to you a debt talked you the partner. you is us could financing about the have future of convertible huge And if whether a test why partner? just of have Can your wasn’t to decisions? that talk we convertible I you anything about for it

Charlie Ergen

Yes.

Crown Craig, to tower our relationship, on it our little Bridge think strategic, major with we So whether than and or and but and I strategic be at partner, other the or Vertical the have look we more strategic maybe companies or Altiostar a does, SBA, come. Street different bit it partners already strategic VMware Mavenir or

there Telco immediate are helping pretty we and several spending the they So, do that we project are the companies and have with big next return on cloud. is not what big helping that. – a capital we us. They been R&D like those are are of all is And got the us cloud, growth. big wireless cloud and in is for growth terms the in companies have next getting

In fact, a biggest that it’s That’s doing their to over different And bit they data been growth normal probably their the yes, the growth. today. little have next decade. be biggest going it’s probably than

in they and are some have together that there doing. invent change to So things we is what

better. lot bit to the us testing whether are network balance better? sheet – get financing on go I would more the than doing partners aside partnerships, we out well going is resources and goal But company of where and is don’t we our – resources like and are beds a look to team view, the and it I help then probably our one we the bet companies felt we get their there of is do doing their your we at we there obviously, to their we XXXX, that make stuff we little those make taken. rationale money you they us make there. our looks everybody are is And how From world know and are help provide know just at the we to they that a is help that us putting and spending of working fail. it’s capital business. Craig, and I are or And better – our way are So think to test a stuff. we with, biggest better, a to strategic then are of do is zero, company make chance a and security, your we have on are We skeptics be always champions think point that job that’s read to we differently how what or our converged just what

one network I about least prove you think internally, just that we to that think and and is don’t our strategic points. and and And think solution wrong. out believe But your I make you we been And have are a not here. great at has about a not great and go ever, therefore, one execute points, writer of haven’t something it. thought go to we build talk I out to – obviously we skeptics this our job then that produce is we

earlier we about why think really on can and – when to our we are there focused so are a what spend in we – we And we everyday, doing. can time you you things, ideal show question, the see don’t when detriment do if And teams focus And so are lot be we explain you that’s think believe we what focus are we think so will just they third going is good that of time important. doing we I what show quarter, don’t then what don’t John’s to are I companies people to And where doing, we something and talking but the talk are in doing. doing, so you. is what I good stay probably you external everybody –

Craig Moffett

partner you in in the showcase the have of you than that wait a means would markets, would of that ideally should sense vendors, about that? talked a take I after them you So past – that I test way think rather sort – that to want strategic before until you have the set major read is you that about

Charlie Ergen

I it just we somebody we enough, happened read got we us – need sense And it happened up what capital. But build to I that thought equity. think We always We and enough just make partner the in a where we same debt have thing We wanted DBS. we strategic a doing didn’t – always help maturities. DBS. in think to partner I to what – Well, just us might you I don’t we confident should and to lot good think are have sense any good keep ultimately, didn’t of think a what was, equity wanted got the enough satellites. made that to give didn’t

work resources sees vastly everyday. is of on have build everybody us capital their The call I point enough in number putting it, think the in that different And not probably to I so to of can cloud-native know whether we come people applying see towards it last our sheet balance to quality work. we OpenRAN of the it year. build do we are and are to The are this vendors last exponentially And higher situation in networks where network is was was it than see than number people similar that year. the sense today a today with but us resumes that

I whisper is vastly people the think know in for the confidence higher. level

built a leading before. has OpenRAN We though. network cloud-native XG are Nobody

that step there and costs network milestone that with our see cost it going And them radio. they think that frequencies are first them money, to for to cost you companies I that for it. you aren’t the a and Qualcomm – do it don’t but that does chips. it – completely. going our make and took do time saw in be a don’t we it step, that with and but that cost took who it Jio second space, them R&D, it They – saw partners, one them cost antennas, them put They their don’t that of a hit – you goes every down certainly fortunate internally be first Rakuten we will are We always skepticism,

Craig Moffett

That’s Thank really helpful. you, Charlie.

Operator

Alright.

our Please now will ahead. We take go Philip next question at JPMorgan. Cusick from

Philip Cusick

gone you network one-timers credits the the on then and telemarketing maybe are this had $XX you. Thank the regarding Charlie, Paul, Hi, you fourth what versus those And following integrations? million here? right those how quarter, terms is you thanks the O-RAN side, it versus hit some integrating up can with the benefit ago where it line? quarter programming the remember of guys. that about in has year on Last second, front vendors, repeated time accrual expected G&A of financials, a sort any I talk vendor you

Paul Orban

question. last I the will of that the take part

as case only hit coming P&L had that it and one-timers, we the one-timer it to was did back the hit SG&A. $XX relates FTC in So the million the from

Philip Cusick

Paul. Thanks,

Marc Rouanne

the will I say build. we to are on this journey that one would moving starting that our O-RAN I now O-RAN. Yes, second we take is Marc. into are the phase of is

lot have We tested a of vendors.

brought that have what build now are this is together U.S. to in our knowledge the We compute and teams are to transferring doing the radios, it we order field we in across software

really are. that’s where So we

me, journey, us. testing this – the for In coming the technologies. have in for has normal when I been This we maturity past integration, industry like we of there is – O-RAN in for terms time a is seen are at other a

just are deploying we So now. it

Philip Cusick

Thanks, Marc.

Operator

Alright.

Please take next from LightShed. now will Walter We Piecyk ahead. question at go our

Walter Piecyk

with network profile launched kind on are – quarter, partners, like at, little this do that’s color wireless? sell in bit in is can the what strategic Thanks. investors you color us of terms to potential going sharing can little just getting more Is consumer whoever Charlie, the third for bit to to this market? Thanks. you of more a look a of first just you market a first that give

Charlie Ergen

people handsets for let test took better even to It had a will beta it be X will so to Yes. large lack a market. it in just Well, will be Jio have a It try hope will – it’s to NFL word, it will for going – they months India, it. an them city. although all, first of be consumers – well, certainly to of we

what I going So T-Mobile – going just problems and I have integration know of aren’t and things and problems the our just to and have. right. with our getting to kind are certain also hand-offs we know to core work. are don’t we going And it’s

think major – work And then one to hoping cookie-cutter why said be and going I a day so that big I those that. I and will And test think by you am kind it’s work market, it’s we that’s that bugs out bed I a of in is after crawling. kinks as

Walter Piecyk

the where the what if you or to most, works we work in the phone how into core drive network the hey, of, how terms around? do a you can But highlight will hope works RF build network

Charlie Ergen

the Well, first I tackling. and think is blocking part

miles car and is completely good We goes be XG So, so to can hour, something will that we think that as a it the make what but that although do, certainly different other important, be goes certainly, that we it will pretty won’t what a have people XXX is long an be we – XXX% – do everybody foundation as certainly, – – would I we you – are shape. network, compared other mean, won’t Lamborghini in got hour as XXX miles speeds don’t much be an need want people. I don’t that than

place. think to are, issues. have are – consistency. we as more self problems I we did in in at at We And power analyze customers couldn’t fast thought kind but successful go launched, DBS all we had than still we experience have our to along get as right kind we we where then started I it look things self took one-offs, correct. when OpenRAN didn’t And work. was getting it. our our where and it we RF it’s the were we to of was time. all and X problems, do or will And we how a pay-per-view spots, initially, our plan, we how where people of that where And And the we those those one us then does didn’t they So where clear that sailing dead X actually do and months and are in My issues able to then and things provision we fuel learned compute remember at able enough. being just all suddenly, look enough

year. that a everybody have call DISH I expectation my is good the pretty will end stands the will So, idea of by this where we think on

physics. megahertz got we how just here, knew if to spectrum. but execution And radios Cloud to a us get know now spectrum. we’d People We knew to get can at People us important DUs. we prove exist. Handsets in. what this had to it. to And we do are And we we people We’ll hard can some execution. some to well, are are not. are don’t to than but to Execution exists. We be just that stop we to to from law now, it. And never chew Transition radios. bit We’ve say, we going stop never just how always say, and me, that we people know a right they nothing the – be of more are there off doing. right to we going from team be XX to we’re invent no we to cloud. we of it’s build looking because stage Tom it’s is execution But towers. And are there the physics XXX has have XX because work, tenured at megahertz knew or could hard getting to I’m is our transition is law we from And stage to build we got years it. There it’s skeptical knew – invented broadband for doing. said, climb team, – ago, good pleasure is this what Well, going tough. no there we’re just, to are the People execute. how now had work. have do have it’s get about but

on auction, of thing well we think get strategy, dynamic days, the the all are you story. a Now and got analyst rest year. whole I And you everybody’s the about go I that that can’t guys – And strategy other – talk that’s will of another to be a your And we’ve in show whole story. writing hear to over well, – next counter C-band think kind the and that. to going the the

Walter Piecyk

like well? sub think mean margin. as type has in Stokols to run, you and I balance strategy? with on can maybe little there am very were think and of with talk the Is historically, type broaden been to of you continual distribution developing took he the the a Is sub margins it which brought Boost at reverse some that you than the losses I losses higher on XX%, quarter curious good is e-commerce just also Steve typical bit is I about sustainable? thing I channels. plan try a Charlie, margins, maintaining there And while e-commerce a some this

Charlie Ergen

because there the have risk think negative – his in to maybe is…. bad factor on credit is we I today, you some and Craig answer kind out the for – his the this we might first about news first to pointed talk – of Boost John, Well, that, biggest

John Swieringa

Yes.

course, hi, Of John. it’s

quarters two in. We’re

– we’ve improvements to the converting that think on MVNO had to economics. make of call operational about lot I we’ve talked the last We’re a

our with distribution. certainly working We’re

We on acquisition channels. are profitable focused building new, more

make you��ll as to move So forward. see there changes us we look

big is We be to quarter business. discontinued on point voice XXXX. are will or we which that X, around very through out, is have January received projects CDMA with some network Boost news T-Mobile. working from and the operational I technology The new want notice this

of receiving wireless services migration. subscribers So the planning were of big work our that on network part from retail majority a

time on certain devices and costly plan to for on will future our earlier, partners it heavily us. building have that network Charlie with So focused as network. And act we can’t that we’re be we on be work that But our shut actually will line. mentioned will, as which if down the

there And and have so we other got that we considerations some through. have timing work got to

Charlie Ergen

are are this I in might these not be of look we Yes. that the is from loss, economically and out them quarter customers Boost they Boost. it a very for at Boost challenged. sense of so customers fact, at are the it don’t to the going in Boost some profit was probable most good there, the so pays But are say, – challenged probably that, think and sustainable kind the all No, that customers extent that margins to to attention they I good economically

that go because another we’re great if so on work works works go upgrade hard then to that to XG. phone phone works a it’s to And in and even great from they and – their our network won’t territory,

So then to we have upgrade again. them

So opinion. if from you run in be the fallout that, would significant numbers on there my and that,

get I phones need. The don’t we that to think of even would we could second the supply is, thing

it’s the – might the somewhat is don’t – you that for of phones can’t that. need supply move limited know just phones and for we the kind can we and you order So phones not

and And team show showed but maybe They time, there think practices they, weren’t of team, that’s they material lead period Boost. were So Street Wall that around that boots in from to very turn a execute. economical. past short out a risk the – is the the John, I team, Boost can that’s the side showed And in could positive on some numbers.

that into game not We’re here.

managing actually your our and capital into manner. efficient We’re in an capital

of very have order. the end second quarter, in the more a can around they in a short the profitable them profitable and became them by for They the first profitable in I were be set they they quarter. shown so year. to goal turn And that

So control we’ve network where are get and they market on on execute there pins edge own can can needles got a and own first our management our team seek that to destiny. and we

Walter Piecyk

thanks. Okay,

Operator

We’ll Chaplin ahead. take Jonathan New Please Street. from next question at our go

Jonathan Chaplin

space. sort I’m big to you cloud with network enterprise slot last get cloud private with wondering that’s to And cloud will or cloud that multiple? whether of be then partner, the network, Whether the private vendors it into will that relationship be be sort XG you merits the in another? single relationships a would of be to provider sell able partner in And like a if to is in be partner a could seems business? strong versus a non-exclusive, category it of seems through leverage one it network that if wondering opportunity you that of could Charlie, you of who I’m can relationships talk the the partner. partner for with given so you the able in leverage vendor enterprises have would much to Whether Thanks. to already into enterprises,

Charlie Ergen

technically. up in team fortunate that are this Marc live our I’ll And let I’ve Yes, we’re way new just and And comment, an States. several vendor make whole and a network. to, And be provider – And over to that cloud to best-in-class that maybe talk I has given and our United enterprise. to let there the to Marc I’ll is actually affects Marc. can foremost, you that over makers great first there that. every to running challenge that is will opening technology about just of But the it’s the with I’ll how question cloud turn

Marc Rouanne

Yes.

we and that in strong now a need. was very big in have us. in different we that the partners the first TEMCO cloud seen telco U.S. mean, cloud bit a the Charlie of cloud. we a different progress And is all, that the U.S. have have from thing choices. for saying And our So several technology the I that’s the confidence choices

setups. architecture this our the to the from the to networks, want to a yet private that other you edge. other the months, So that choice that – important we of given network the about comes the the but when When no very also us, made discuss control no set we different was software, our very wanted different customers we to good because us That us. And And that. software has remember VMware move world has XX And capability top was feel capability software clouds, the last a cloud first given has between VMware. reason it or over we that for in you use. we to was

Some to you be it some cloud, And for certain type us, on some have factory of want, software to has the you campus. put their premise, want their on have a cloud, their on want, the private automated. or

of to south. the like – And where able so we the we said, seamlessly. are do cloud I deployment and in east, with time spend be a mode we now that with capability and the lot partners to some I O-RAN, have north, And for the west move cloud software our VMware to partners with

Tom Cullen

is Tom. Most focus to a this team partner but to clearly component bring has Jonathan, go-to-market Marc’s on architecture, the we relationship. with a the technical working expect the been cloud of

Jonathan Chaplin

Got it. Thanks.

Operator

ahead. We will at Maral Kutgun Please take our RBC. go next question from

Kutgun Maral

isn’t your new, but effectively, and launched of if Thanks this I am the I for ultimately, great the follow-up. you’ve if pricing their or your have distributing? partners during taking changing? if curious take wireless, to across terms tenor through transitions, I more I fine-tuning with thinking programmers know Charlie, do And have my is about direct-to-consumer negotiations focus maybe questions. but who is Obviously, discussions so, an expect talked on packaging it transition about guess, the and a harder line is pay-TV, you’re own And services. brief all you the could even content with

Charlie Ergen

it’s don’t I that harder Yes. a line. know

that word, it, the are to I of to per is lack alternatives better for so help a – hour. viewing people watch what many what think programming we cost – value how And get it.

had the content content in exclusive. had the have we money watch their are possible providers and you as right? has bundle for give cut and a way, keep And – it content places, a we And us. long channel So as value consumer do They to less direct NFL making extent we and them exclusively, we when has our be in that negotiation how the extent as saying, and go rooms. the content every That valuable are it that to value, much ticket by out. strategic flexibility are we as a-la-carte. of obviously, consumer can available within these linear that means, to just strategically, as the go our So XX – football different it’s that we think, lot more one-tenth to is we possible paying other then and these guys while them through to guys will the I season

be So going going tough obviously, a that’s model to business forward.

X going big sleeping night, made night as all I lot unique We knew in business an video to make be to at it. we maybe ever that, his say get this transition a and going you been based And these good. different Erik word on at business. lose The I declining are expect to our wrote customers more record, and we going be this the have flows we’ve made not of looked partners ago, one our a on But kind because run that better – some the DISH before viewing as I’ve go on will go as is a in and have X will of about years knew are about It’s this things experience X or And speak And through experience be as conference going a – viewing cost But at on we can that but wouldn’t business. our or direct. at model a – go the we that. you these I probably result we We some solid to it I decline. business, – before. cash anybody done business Network and think we look, more customers? back than years are would team would our that Erik it’s to people challenged a that was be away, would so up I mature of after experience we challenged down lose programming would why of – customers why and so money programming go call it’s talked we the might much the first and may of that and sleeping laughed vendors us on. spending it and the would am when of of or a it’s dish aren’t everybody We probably, forth now, look said, am rural that it’s probably

didn’t great guarantees consumers. wanted us they prices – high a that HBO. HBO renew, that with to competitor. minimum from we for We out with and the pay. our sense obviously, found that relationships made we’re us We have no And

to – HBO Showtime coming that and had Thrones let lose didn’t they they other in way Netflix customers up, revenue the they and of had many – our no So and bought lost relationship Game Starz Thrones. season things of strong. and was Game stream. and it me And We because final put so

So do in you jump want that? on to

Erik Carlson

No.

Charlie Ergen

Alright, operator.

I think more time we one got have for sorry. before we –

Jon Atkin

with got Kutgun. follow-up question This is Jon Atkin Jon a Atkin. is have I Hello. This Yes, RBC. from

delivery referenced tower run-rates and or are partnerships the per terms basically the quarter a fiber MLA little of of drilldown to on in wanted I targeting getting XG, per month type deployed? of gating on the bit radios you entitlement? that permitting the On what more the the to we year? you the to about it and the factor, What kind end look forward is pace equipment or the Is of the of through can the start

Charlie Ergen

Yes.

is be the to radios. gating think I going

It’s it’s supply supply to chain say it’s chain. So, right a management.

Jon Atkin

target the to network. the need going of get after XX% that markets didn’t the redeploy of besides cities the the beyond, that you and to hardware NFL redeploy terms of in you And are and obviously hardware, number to

in MLAs lot we at given the kind place? are and what in the looking already have you cadence fiber So, agreements of a that of place

Charlie Ergen

us be to cadence June. will to Well, XX% the get in

I exact number it’s – the pops probably million XX, that is, XX that’s know pops. of So but XX don’t

Erik Carlson

Well, markets. minimum. on north we by is that really is XX,XXX mentioned towers that The last it will for of focused call target dozens of I I quarterly it be the the think of requirement earlier timeframe. in call, And on on said underway XX,XXX The the XX% build-out the ‘XX. as by June activity is

Charlie Ergen

that a in have and ready am we our ready are and daily have is means means Marc am and at always whenever I staff are radios. for where he and and radios that Mayo, Yes. Tom guys I Mayo saying, ready and Stephen to you looking is whenever are, schedule you going you

own am but cadence chain out, hesitant I are some factory so that everything had we it is to because confident, get delays And we to pretty until give and in you that else, we spitting the with already production and see COVID and supply with eyes. our have

We pretty – will cadence looks looks see. good. But okay, pretty it the

from more media. one operator, will from So community the the we have and analyst have a time time then we couple for for

Operator

Alright.

We Instructions] final Credit we take analyst will from will take from Mitchelson Please Suisse. [Operator final final community. question at our comes the our – analyst go Doug Our ahead. yes, now

Doug Mitchelson

Thanks Alright. me. for squeezing

couple. a Just

You lot. guys go-to-market interested already Tom, you what component. by relationship, say go-to-market covered mean a component just you should in the have bring to when a provider cloud

do just the deploying And is just of what just on the be? fishing you – on lastly, if fully sort can would jump Craig’s that sure network question. give I this not then a if to on flow can sense hand. adding wanted you a to I you’re willing much but are the at think comments based build-out to Charlie, point there and curious here, cash But Charlie, network on fund XXXX spending your say understand, us cash ball, more guys I

I you think surprised I pretty was by using equity.

how You equity. a shifting certainly last a if financing history have The avoiding of of mentioned there a years, and you to balancing sort execute lot you of network seems creation change lot helping assume you was here. a you from funding with and of I financing. in might expect pretty long value you that of in like equity over interest the couple

too much. of wanted capacity Thanks Anymore an would with others an taking So in was terms they issuing investment the of be of convert helpful? to in versus you issuing sort understanding, a rather equity? or just rate demand by the help you terms share debt could money willing expensive in charge us to give or that you so of

Charlie Ergen

a and Charlie. for The things thought for not most we’re go, up you on there is it think how we of hand, get are we execution, to equity to reason, And on relatively But And debt and thought threw on so be disappointed. better it’s would the this better going. a where debt-free Obviously, market material we bit we’d whatever execution. the little balance given get believe, we’re we where other the scheme of wireless we Yes, we’re kind in the we’re have. going going much side. is – between we part, that

I for we be you I wasn’t think best range, attractive. have thought it we guess hit it X conversion should there some that we think didn’t hindsight, our as in in we, the interest have XX And maybe where low quite it $XX X% guess. you knowing good if win quite about – metric been, years was some, again, But to in of lose going So would pricing-wise. was our was maybe had we’d come thought and differently. as And I

And little to you that do your take a so go back, file want resting? now and smarter. Tom, I we’re

Tom Cullen

questions four there. nice getting in Doug, job Yes,

far they edge a range the and clearly – they which cloud, see sales with the as conversation XG movement into channels all mobile computing, on they provider depending talking base. towards which we’re with cloud As conversations service obviously, have all brings go-to-market, enterprise But to. distributed their naturally the customer

beyond So detail. more that, to don’t want into go I

Doug Mitchelson

helpful. That’s this And spending year?

Charlie Ergen

guidance give that. We on don’t

Doug Mitchelson

you Thank much. very Alright.

Charlie Ergen

Thanks. Alright, Doug.

Operator

take We ahead. media question will Please our at now the Moritz go first Bloomberg. from Scott from

Scott Moritz

you shutting Hey, earlier that Do any break shutdown? of the on will timing to you of have Charlie, had the that FCC talk Boost spoke give they network about the this? confidence call a on Have chance to the you you about down. the risks a Great. maybe

Charlie Ergen

It’s FCC. possible to – this But I not administration our talked risk a have – talked not the haven’t it. – look, have shouldn’t to I out say, we to we has. we’ll that’s providers. We there, wanted the and that talked it’s staff Well, four

what that one what see four Hope risks we – always environment. about the Washington that of know is the one are worry we don’t regulatory we’ll We It’s the providers. of had and make with people some winners the have other. picks one that or policy others. losers, good had And way we’ve affects bad luck luck, and as we’ve some they that

tell goes. as wins they as a if network way simple up I’ll which little couple yet, – they a can have that. places have way we if those to boom. obviously can’t you as we – customers, anticompetitive. they to of go our see – a mean, go. So the I we’ll Obviously, don’t about only I’d you probably it little look, a But tell But bit which bit. probably that view they

And anticompetitive. as so that we view

Scott Moritz

of Great, thanks. considered also customers Do the back that And going risk be face anticompetitive? those you would to T-Mobile?

Charlie Ergen

can Well, to but T-Mobile. turnoff look, can one motivations, be can’t what the the of say what – of is don’t we one beneficiaries know CDMA see – you the would a I of obviously I what – the of premature speak network beneficiary

Scott Moritz

Got it. Thanks.

Operator

Cablefax. Please our now at from Maclean question go next We’ll ahead. Amy Instructions] take [Operator

Amy Maclean

question. Hi, XX foresee you and the you its with thanks it do of for surpassed as just taking what wondered, said, million them paid a you service service changing you Discovery subscribers. how that thought I that partner? deal today Discovery, wondered I has Plus

Charlie Ergen

affect so why time, call I I’ve And be every to Discovery get where and the future relatively can obviously, watch done we that’s burden somewhere if with, customers don’t content. that’s on economics. fair rate had talked you in they to has with customers customers has rocket it a to some our watch think look, it, us know who run start so It’s – we I – extent customer burden math. just because have customers to why – get think the it should the relationship for Because else? a can important it long-term that I real-time. great you long And Discovery. they a of XXXX our about in it don’t why that got we watch who that’s our we’ve of in that A can with started And if how Discovery, them. to our I has out Discovery it But that’s don’t basis, it lot be it a-la-carte science. will watch to mean, watch long the that’s transition customers We was negotiations. a are. not get I don’t

can I from take the more operator, we Okay, think please. one media,

Operator

ahead. questions. There speakers. I’ll go Alright. no back the Instructions] to further be [Operator appears to it Please turn

Charlie Ergen

Alright.

in will seeing Thank right. be you, April, We late it. all. Appreciate

Erik Carlson

Thanks, everyone.

Operator

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

You disconnect. may now

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