DISH Network (DISH) 8 May 232023 Q1 Earnings call transcript

Company Profile

Participants

Tim Messner	EVP & General Counsel
Erik Carlson	CEO
Charles Ergen	Chairman
Paul Orban	CFO
Dave Mayo	EVP, Network Development
John Swieringa	President & Chief Operating Officer, DISH Wireless
David Barden	Bank of America Securities
Ric Prentiss	Raymond James
Michael Rollins	Citi
Walter Piecyk	LightShed
Doug Mitchelson	Credit Suisse
Jonathan Chaplin	New Street Research
Kannan Venkateshwar	Barclays
Craig Moffett	SVB MoffettNathanson
Scott Moritz	Bloomberg News
Paul Kirby	TR Daily

Call transcript

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Operator

Good day, and welcome to the DISH Network Corporation First Quarter 2023 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

All right. Rachel. Thanks, everyone. morning, Good us. joining for Thanks

On the Erik Ergen, Chairman; have today, our CEO; we Carlson, CFO. Charlie Paul our call Orban, our

Wireless John have Wireless; EVP side, and Network the of of Mayo, and Swieringa, Development. CEO Dave On President we

you I usual. harbor, remind our safe Before we to of start, need as

We are from materially that no During our could assume this which actual call, our from uncertainties forward-looking risks, results make may to we differ historical cause or results and forecast. statements, to updating for forward-looking subject other responsibility factors statements.

please may For SEC to on factors more information affect that our filings. future results, refer our

with opening to remarks. And turn for to Eric like I'd it that, over

Erik Carlson

few your thank Thank for to today. being brief you, questions. opening here a going comments up it and Tim, before everyone, to and you I'm with welcome, begin

that it's we As and planned call, not. months, of are most experienced and you had a a our we busy few last some been outage business continuity On affected earnings announced incident plans. our response some aware, network

was our of the certain enforcement we law incident, notified we XX, promptly as determined systems extracted cybersecurity a appropriate due On been from further had to disclosed the data February we the that incident. IT part authorities. Once outage

extent incident. investigation that and we our is Our have the that this now to determined accessed not customer incident the substantially in complete, databases were

data records, deleted. a affected among that number information limited the has extracted and employee-related we personal of containing certain to that extracted. data received the were and confirmed We've personal and been confirmation records have information we taken the However, records have protect other steps

applications we We incident, payment of individuals no systems March. operational systems by restored evidence have whose customer self-service this data and are and cybersecurity misused, have the started process extracted. since have notifying websites, functions, the While been the affected care was our data has we been

operations have times care normalized. running and are customer Our up and service

running team and and work systems and of operations incident. Wireless throughout patience inconvenience and we Boost their We and the up appreciate services the Our sincerely all our members, remained Sling Mobile certainly TV, normal. restore return to customers regret care customer the DISH to TV, while duration our to

is security us. to extremely Data important

working third-party overall processes. defenses business cyber cybersecurity security We've our experts our posture. upgraded team, our and other further and has and and endpoint improve response been data our including measures systems. to secure We've enhance continuously will system Our and and we've taken restoration also refined to system continuity detection

in we respect in amount financial This with our remediation, in disclosed incurred Now today XX-Q and consulting the of financial cost of mainly included expenses, is we the support about that to $XX additional costs. incident, our million IT to impact of and statements. customer sales related

churn our and We subscribers. for that negatively to TV. related not the outages Mobile also disclosed affect impacted materially the disconnects did incident Sling our TV Boost DISH The outages or

During undertook our extensive we commendable and and employees efforts to protect thank impacts want understanding. patience employees, further from subscriber or to I expect the costs any additional our the enhance we team the further our incident. support, and to efforts cybersecurity our and do not material suppliers our Look, and support practices. to their for future by DISH, base Due vendors partners, incident, at customers, to customers

community. And taking Operator, start it that, lines. from open operator hand questions with going to phone I'm the to the back to please analyst the

Operator

line Instructions] of the Our comes first Bank go Please [Operator Barden question of you. ahead. from with Securities. Thank America David

Unidentified Participant

XX run of Barden the David Can Piero CapEx at could I possible, rate when talk start that Hi. to for you off This heading for (ph) post then rate is run June Bank rate potentially on build-out start if And provide when wanted into CapEx. requirements? build-out? Securities. what and the the a questions would ramp run America Marlene then be regarding potentially XXXX new CapEx again about would

Paul Orban

good Paul. a in. That's This jump I'll is question.

slightly in year's off June given unlike going loaded our come last future -- milestones. that. we But we'll CapEx don't hit after think we're front-end other lower the CapEx, it than I not with but dropping provide will last be than we year, guidance, to

Unidentified Participant

Got it. [Multiple Speakers]

Charles Ergen

think, This is Charles to a that. color I to little add more

I and population. population. think the in two of back-to-back 'XX the with majority the that, obviously, of milestones we had XX% 'XX vast

but really a would for go -- perspective. little is, So -- a be to CapEx things of some certainly that us in find pause look current the you have. always with markets, you to we we you bit have customers, will able One that some of CapEx to and we do gaps of new can -- continue take Once two can the able terms from we'll things. some a we markets to be densify we're

-- time XXXX future really or current So XXXX pause the But late bit have to markets. we a early will we'll frame. CapEx markets, of a some in be the take until able

Unidentified Participant

Got the it with it. And licenses building is XXX update the out licenses? other the of meet to any the build requirements, you mid-'XX megahertz then out to on the you that concurrently as give be build possible might

Dave Mayo

to quarter. yeah, way is to Mayo. and XX,XXX sites we're have those and to the It and us be meet will on of of on So about objective, end powered fully this sites the Dave XX,XXX construction for take started We've fibered will achieving that. well as sites the first approximately our

Charles Ergen

Yeah.

of second in numbers, for your have for could the part those you'll I network, XXX do in roaming the is numbers. kind case-by-case you putting is more question something for own new by something you me, make find XXX, basis as megahertz that that charges the that -- the in of cities take that on is more additional than success. a XXX, -- excuse XXX that's build but But -- on FCC. terms you'll you'll think of you Ultimately, will build those

Dave Mayo

way are We well our on

Charles Ergen

that. to addition In

Dave Mayo

meeting our with XXX licenses. to way on well the the to respect We're XX% Yeah. megahertz

Unidentified Participant

the business operations once it and hit to last do then in how us is XX% strategy? possible the Thank of much make if mid-June XX% sense will you this your you. a go-to-market year, this terms give It was year. requirements, of Got it. And

trying impact now on just could So offering. business broader think it the a with have to about the much

John Swieringa

that the I'll It's Good question. Swieringa. morning. part take of John

So that's end XX of now first more at people XG million than with the little the quarter, through DISH we're Mobile, bonder, bit cities. commercial serving Boost XX network a

optimize out we launch. the we as in build move densify So then markets network, towards XG those come and it and broadband, commercial

the chain would (ph) U.S. progress We're we expect in the devices be SMB retail So that onto serving that, majority as the population that loading (ph) expect network. year into steady the we'll pick getting end we bonder customers of our commercial the bonder continues. the and with making to of year, up distribution supply and by and our with

Unidentified Participant

current you capital, address Got including it. given two, capital, cost hold maybe pulled -- (ph) your upcoming And, the maturities? us turning cost And have of are can of just one what could to CapEx? put additional then through the needs, levers walk just other to that you funding

Charles Ergen

the Charlie. of Well, $X maturities and up for with obviously year, in next next It's coming a on one billion focus so convert. our that's March obviously, Hi. we

a equity levers it think in be -- the nature at number today. that and equity there's of light or would needs equity like kind there idea of And look because we say we terms levers. of So that to it's

the we're is the just sense from aren't us poor but and liquidity that we're Obviously, market a in rich. probably, open really perspective, to debt -- asset

call. on we do going And the maturities. give capital meet there's do I'm all have. -- But the things a over we've we of that been and can look those to think and not so we you there to good at many different we that that those are years, we the levers can some steward

people And start bit postpaid, the we're of operations because becomes little a on people easier doing. see profitable which a extent more little business you're network, what obviously, things. the bit profitability to a the efficiently, we stronger will and our on two growth And start way attack focused customer on so our that and liquidity with network our business. operate of our competing to is the One putting is

If that, not do different story. a to you're then able that's

next see a markets having have we wait are government the to Even obviously, crisis. And and year. debt where the

market money There is the change. today is where like we’re But available fair else, in there control out the that the of So marketplace. amount in obviously, everybody there don't capital a -- we marketplace. doesn't there's We goes. economy hope

Unidentified Participant

final anything there you'll you. one, on auction? one do I you Thank any then or of And in could the what with there timing provide Is you that? terms megahertz share Can XXX update potentially that if spectrum could.

Charles Ergen

-- XXX compete. -- us we I it's can days is CEO did minimum important XX extremely and repeat XXX think able T-Mobile extension of the to on of to get think said, we be and what at a I that for megahertz an

so, we think able capital ways particularly we transaction that's but band, to important challenged spectrum. to that be that that And wise, point today, would low -- can there's think obviously, from happen. that make And we're it competitive a of we view be transaction do uplink

Unidentified Participant

pass on. you. Thank Thanks. I’ll it leave it there and

Operator

Our of go ahead. Prentiss line next Raymond question Ric comes from the with Please James.

Ric Prentiss

Can Thanks. me okay? hear you

Charles Ergen

Rick. can, We

Ric Prentiss

follow to I Okay. And on could. that, if I up want

megahertz market of XXX at resell that? XX%, to build XX% are typically is Also, securitization to means spectrum, it regulatory the what requirements the Is -- spectrum With you possible any it. about there value.

further could what on requirements you with little Just XXX. wondering, if the elaborate that a are

Charles Ergen

but it, we have it. build to built is requirement The

part that down. There's that turned the pretty towers most turned have down So part. And keep -- of that Dave statutory my his much they for T-Mobile team a megahertz. it's understanding done is requirements that network but couple for XXX of build and what network some up, to they still the has

be functioning weeks. the view, transmission of at a point few So megahertz it will we a have basically a of XX% from population in XXX

we meeting we regulatory for have penalty have to it. of don't million for If for problem the we T-Mobile. $XX if, reason to weren't a other exercise to some the a So able commitment -- would That's piece the of build-out. option, wouldn't -- we

Ric Prentiss

of to transmission? then help able with over to the you any Nextel those antenna old sites Were take

Charles Ergen

did We any? don't did not -- take I over Dave, take -- we

Dave Mayo

Ric, some I in taken we've but frequencies it gear XXX not the radio would a number, The radios use. megahertz call deployed deployed. that radios below sites, are Nextel -- we've the not that band wouldn't a -- that We've it's significant but we

Charles Ergen

new a several you talking But do it. build if dollars to of to were put in billion you're megahertz, XXX to that do perspective,

megahertz to to that we out be a certainly build multibillion own and as extent build we've cost If as you would you be potentially were that the much frequencies. our would -- It'll that your build to all on for go had XXX bill. have to dollar

Ric Prentiss

Charlie... one, Last

Charles Ergen

recognize. on big I think we up an but positive negative, figure that it leave people just a to to don't here asset analyst that's or for I the that's if out positive have

Ric Prentiss

you're on think is might me for type any the And private one Update are wholesale with use team the for the I in marketplace? cycle. of Last several best the times network what know said private as that a seeing network performing potential revenue hurdles in that in stream? kind strategic for that long the business, Sure. it's pulling enterprise the us are far there? side, as you What is network I applications. of be partners How sales financing area? there opportunities

Charles Ergen

So I talking about of enterprise think the side you're business? the

Ric Prentiss

Exactly.

Charles Ergen

Yeah.

out you is scenes, the substantial actually would would a haven't -- ways would business enterprise behind a we of lease approach obviously couple of That it the and really we'd it of made market. to us. they less be CapEx. progress the are take build obviously, One announcements. it, in in attractive which We bit terms that But and terms mentioned

it The second is for people get-go. the from just pay

spectrum thinking in be one. already it is partners big enterprise build, a So they would the about they day or third how it's our to And Cisco whether that their business our had AWS where just networks. our they some come cash that from private or positive mind, design Dell have of into

be And at of that spectrum. we a provider point, of more would wholesale

players. we're if for business. So that be better market go -- companies become I omniscient and the of because that new a going enterprise the without a what just possibilities for the we're I any network you're just have a think ahead of network kind to bit they really network what of should build those you, it's just should is about private do three kind and the little But are it of how huge to think can architecture -- build do you would it's an what we of legacy, right. for you build -- it a think going better we when have the you it positioned things I all is

Ric Prentiss

Any idea when we on we fence? deliver our it of formally see can it side announced, so the

Charles Ergen

frame us. before we see time I event you. for a said for XXXX we that mean, you’ll have think Don’t

Ric Prentiss

Thanks a lot guys.

Operator

question with The from comes the Please of Rollins Michael ahead. next Citi. go line

Michael Rollins

questions. of couple A

this options: raise strategic first I transactions, a DISH there, is, reading was was plans just additional more or The the one in the comment following implement morning, reduction to one additional the advance cost XX-Q and/or capital, pursue of initiatives. there

if more over next and of little Just expect number the bit curious can you that should investors that? months a unpack from what

Charles Ergen

Well, mean, the of can stewards I thing and -- two realized a about don't I address the the And And obviously, say But what than first think anything we there. sure devices that put -- ways, to focus more more obviously the best profitable. I think more of And haven't we business, story we to which right network on yet. there's we out have of that we that else that. in because options obviously, could world I that I liquidity make that And get I've market. much the know we're obviously, we're because, do good in to capital, now, a you to is makes really the focused easier we build the enter we executing proving compete. is really on you're liquidity our proven can network and and team postpaid more we're

of kind number that's So one.

on on the -- FCC thing and of the off back-office call, since milestone nuanced do with to a more this And second to to quarter. The just maybe that meet thing, inception, billing for TSA basically a but And T-Mobile of with by people our been end which this provisioning have our which is have the functions. is and bit the little third the all we've that. agreement our is we be that we

hoping to -- things we're the been that it And with your year are to successful we because of probably in and then that a -- showing start do see this. that those could than if then you everybody then growth big get And need that, has So compete. earlier side you do. for we that, and you obviously helps you're expecting liquidity you

and a but certainly, which on confidence things. it how wouldn't to you recover maybe right an was the lot lot And quarter, time we based from behind gives other two up solid talk say And operate. in there's it we John, thing the John have forward you about. need team And effort to I there, was of -- a under and other one the can real a incident. best-in-class that cybersecurity that think, us, this I of actually One done. it was, on pressure going get can your our a can effort. There's us, part, was team, when record massive -- for

John Swieringa

made getting Well, there's a of and we've Boost go, been a lot on lot ready focus progress Infinite there. of to

one is And come and well to the iPhone to year, effort big been distribution. for focus in as there sure us ready a the You'll bringing in go see across Infinite, Boost as the the marketing it later ramping of you'll make postpaid. this things see we're up that's to us a year later teams there big

Charles Ergen

in I And of think the And difficult that to the I because a without be it. market there. is successful be business Yeah. out obviously would share it very iPhone part big think it's important postpaid

-- that iPhone the will market And we so months. few pleased to within that bring we're we have the actually to the next able be

on and defense we we and frustrating things bit a -- think more then this do. we're offense we've got a bit been things we more as needed I get quarter done already long do, And little it's to to to of as to go we play a that So have. couple two

Michael Rollins

if migration at customers there with opportunity, satellite accelerate Sling And I’d maybe the these cost then entered details to some around to another read the a just an take bit launch shifting you satellite. streaming? also and contract product and side. gears you Can a that the point, leverage on continuing and to the share the build thoughts video side to into just little more is and

Erik Carlson

Yeah, today Michael. DISH with so really comments. into enter we've a TV that fly we're profitable Maxar XXth we I'll on We satellite we've Erik. from adding time, a This satellites and we're a what did satellite so Charlie America. we to and focused at that into build the been maybe for is been on familiar as But talking some Obviously, about with. we in few Maxar. rural call call EchoStar subscribers entered perspective, quite the would that and take agreement has XX, an agreement

some had of we've those success there, success some decent customers. had retaining And we've in and

as the need to add to our of fleet so operate position age, satellite and in a appropriate in continues we're the a to backups half us And with to service within decade. where continue for order we latter this

under satellite that XXXX. would somewhere expect the and Maxar to under of that is we in contract so neighborhood now. And with launch construction We're

Charles Ergen

add add is Thanks. a a think is preferred efficient obviously, for obviously, there's -- Americans one business seamless for and away. And terms thing of to an choice we're set-top-box that we been apps lot the things the to experience. in still of don't way I'd watch TV. able to DBS The that It's going

have And to business purposes, insurance away. -- a good satellites have these want of some for our policy satellite really just So facilities we extent, for going the you too. to in place have some We insurance sure make to right that customers.

reason. the So that's

Michael Rollins

Is in there just for we a mind this? should rough cost keep that

David Barden

But the footnote take Q, if in the look commitments there. capital included disclose at that. don't in a We it's you

So...

Charles Ergen

them real. make Don't it. what So is

me tell what Just it is.

Dave Mayo

total capital it's disclose. then We stable. It's and don't including

Michael Rollins

Thanks.

Operator

ahead. Piecyk Please comes the from Walter go of with LightShed. Our next question line

Walter Piecyk

-- losses if you the in been as then in Is have then Boost, you and just the there and then usage impact any what in hadn't the revenue, April for early reported it's churn is, on to subscriber that? kind collected they been said gets like of similarly, May what ARPU have customers, And part seen Thanks. been given of you to what's revenue? Charlie, would which you off the And of anything? sub up But as systems third it extent know written the show to been had terms impact? you that not or March, or I a it do when in wasn't same cybersecurity repaired. event? question, you lingering DBS look impacts a at have account receivable how and had the the in

Charles Ergen

All right.

postpaid Let's unpack Boost the as that. impact Mobile. we're business entering postpaid just a realize the in to we Probably material Walter, that. than a profitable people here a lot more really might answer customer. take our where and of situation, expect, a quick. couple I'll Boost on prepaid a customer network, up now bring is we Not different We're as you

So have spend capital, if capital profitable limited to customers. on you the your you're most going

so get been economics better Boost as in coming. just things perhaps better that aggressive coming, haven't as knowing we And we

that that's a a where small theory. $X much spend you're spent makes to return, our So least today next have you waiting at money better return, quarter that better off until

also of network, on and Boost then And we that's our there's too. benefit know happen for Mobile, now, another those starting to putting people that

wouldn't into too So much -- Boost. that's read I

Can take about question you Paul. you accounting that. may that, the to relates it As take revenue,

Paul Orban

in, is revenue impact jump really Paul. immaterial. and I'll was this The

immaterial it show seeing up question. ARPU to amount are the in you and answer -- your So

Walter Piecyk

from that you when stores [Multiple collect? people collect possible? revenue mean, did Because how collect Speakers] wouldn't and to there's is possible? that go back like bring you had able cash like weren't I Like, and people How stores, to to to that and able go if did that you reports to customers is

Charles Ergen

the of you like collect hard case, really press out A that that. in exaggeration -- didn't it's cases hard exaggerated. to a lot But lot every the -- stuff there. more something really comment maybe of I is on a fee It's just or think to late that's

think maybe... there's Maybe, Paul, of you that. I little bit a can

Paul Orban

amounts by and Yeah. collecting quarter. of up the No, the running, all end we're

up. So that did get all caught

seen it, our But have answer year AR you specific from your I have question, would would AR. you down sitting to in end. So can see, as balances been are

Charles Ergen

have late might we the -- might waived fee. there Well,

you'd little the would somebody You're on you collect down be there, it stuff Are because material. a to probably extended but you there's three around able you late fee. the margin more Walt, you -- have waived than days some the margin because knew nothing

The third question... of part the

Erik Carlson

think, I mean Walt, I Eric. I is mean, this

little that's our I opening a impact business, where obviously, about bit and I was. that -- talked right? most of we've you add was definitely bit a want Yes. DISH it, tools we TSA on the statement, it to why imagine, Obviously, little we're but side with associated Legacy of as can Boost. mean, a business on the legacy kind the to of some here, color. through explain about Sling. infrastructure for staff T-Mobile we've Just more talked modernized really felt, the The my for of

Boost And our Boost Infinite then out and operator obviously, new new we're building businesses. platform digital our for

here, so in right? talked frankly, as And principles, have awards And, as a them. Power which the side business, the customer of architecture we've and award-winning really happened. modern our about service. impact legacy proud about we're quite much, impacted five the are been where different J.D. quite of row, the that's giving We've DISH We wasn't and

didn't quite the to frankly, we just expectation. up And so, live

cycle. And so we're billing in were we weren't and a payments to able times, there in hold obviously, postpaid mean, process long I DISH.

we Paul on And mentioned, as so, up some of that. caught

QX the impact, materially I that's had Sling, behind legacy But opening and the remarks, that of and now. and they answer customer. disconnected. affected you're really might we past seeing or had late the we there, on to not fee issue phone the Boost And which have able us cases, or in a DISH essentially, put answer there Like may us. issue where in call the But So a we some side customer have numbers. a been in a technical generally is that they business said here the where obviously, weren't benefits

Charles Ergen

Yeah.

is to your we side Just I -- X the you the maybe of is; thing had way answer on the out expect, to so had but we things go two mean outage didn't we guys that churn gross we the behind got we lower get churn. and you higher second that didn't market. is to elevated would obviously, we DBS return make and almost know question, We happened -- with I way try which -- had sense adds, because the business, us.

Paul Orban

run normal More rate.

Charles Ergen

normal To rates. more run

Walter Piecyk

seen And thus in of the first far that's what think. month you've the quarter that don't I

Charles Ergen

for but How Thanks that? the think we question we But that asking to again. return expect I give we don't guidance, would about operation.

Walter Piecyk

That's fine.

me So you different let just one, do mind. one if don't

You to the capital of any think give really anything? obligation anything, market, to raising studies, Like engineering and XX% has have whatever becoming submit they're fourth I going it's in normal clearly, help going of Or given indication which going the got or when in like procedure, and submit to the it terms FCC formal whatever terms they it some to normal don't of to to they you're [indiscernible]. say you is, that but that an have the be hit done you you don't -- is do competitor or you is you stamp? standard

Charles Ergen

Yeah.

don't did which frustrating control, the for really of not think would helpful. and we the they be indication very regulation and to more -- is some that because They helpful would government control, the be probably would It's just XX-something XX%. I think it done things It hard market. we everything that to do It's at, can with of one give be the years, if successful worked the so that we've I the right? and things forth. really, we one

we SpaceX spectrum, allocated stick. -- option regulatory an though study to came an spectrum, for for mobility. point on as that to congratulations that not SpaceX, access weren't able my short that were XX the But was end and but paid -- there example, gigahertz view, a able we from the we of out there we that to was spectrum a the of even that was

been had So a -- there, it's of -- of we've a on losing sides we're bit we've streak that. both but

be say made their certify don't to have we to penalties under expect anything verify will And of in team that think to it, because perjury that It'd should study I part the -- to they're but that but hope our I it they take we've FCC do themselves. will helpful, will going have certify that

going which -- to will take them some they do. should So it They're time.

an to point be So extent view, expect requirement, made -- that will is FCC sometime think from think under DISH their expectation [indiscernible]. going I to I will is we -- do, build-out going but of to XXXX that has don't anybody say, should the in the we certified we certify

So take that…

Walter Piecyk

that you and your inhibit ability hey, does Charles, the hit all that, say, extent reduce CapEx believe the let's you to to XX%.

unrelated get your spend, are fire these think you to like, to with to are You cutting or T-Mobile milestone have pull to things, do back hold to on feet shouldn't CapEx the and different people look continue at trying FCC reg and you Charlie's the the that CapEx and then or hitting is whatever their two FCC? and further which

Charles Ergen

all, can expect you to we're none speculators, competition of first horders, were we true. of that go always was We to the But when think don't I FCC. -- our were No, four or you've above four our at quite companies people the got three or in punch that FCC. coming three versus we the don't and weight same -- is saying thing, punch

OpenRAN work. -- certainly get expect a ago, about three OpenRAN can -- hear be and that years going will didn't you of lot to there you you're -- So

DISH like Well, it it away. a decade maybe or it maybe never made work, And make now dish was it will worked but then, be maybe well, dish then well. a it it's still it work and

who have which milestone, and 'XX. the don't with think continue in bit, is to third doing our believe that to going ramp continue, spend required we'll CapEx to early late always of made it. exception aren't we've 'XX will, continue the from we to you're which I little So up that milestone on noise have we're But once we to people a

Walter Piecyk

Understood. Thank you.

Operator

go Please comes of question the Credit next line Suisse. ahead. Doug Our from with Mitchelson

Douglas Mitchelson

so much. Thanks

if percent on is Charlie, it I AT&T's if little experience willing the conservative way. think guess figure I'm question in in at to tight traffic percent or are most pretty position, obviously ask your the I around things we a of flying versus pretty maybe the sort ballpark, But this your here? been And, to what pretty if two questions. views you booked approach out has wondering capital you're network. of how Boost what the conservative share But structure. that with sun own to constructive T-Mobile the a sympathize or operating Thanks. to I'm close you curious pretty network you're the to you're company. think so trying just my running on historically I'm or feel markets with point market's you And bit, like

Charles Ergen

Yeah. do say rate I pretty changes would I last operate year. the that think conservatively, we think do markets in historical the I but had

So certainly pushed pushed but into that has us has closer sun, to sun. -- to that more us the the not

-- a So have we of window look, narrow opportunity here. haven't we

execute capital window a narrow to perform have structure. and our address and We

of So things right. to we lot have do a

they I business I to all us, not no We think much place of doable. with it's the unfamiliar today. We the were small a mortgages started And XX%. right? than mean error, that's capital money. So we scratch margin were markets in worse have XXXX, a but started it's from are

-- or very So little capital.

a with the very we denied DIRECTV and window narrow were We had merger back in -- a by had department. just then. we So

we've before. been there So

to get point And We where me would from of do are on lot front from be, and view, they we they obviously, things. a worse, do or year? of And have a view, in worry markets don't things of the continue how there's have next that sure. of would And the know regulatory regulatory for those a that point regulators. that again, the obviously things, rule

-- We haven't we the shut very didn't CDMA on bad. which was pretty do off, well

DE -- haven't very well in done We didn't we do the litigation.

things, very on a forever. you done you but you street have you don't some, experience lose -- haven't some. losing it, don't my win they well some -- We both lose sides been but on We've is of

we'll be but And a hopeful see. so that, will that I'm positive, lease

of window control. a and we path, people the control but to execute hope gets And that we call, have on any nothing a on have But -- have that not path. on the it's And the we this worse we a marketplace. opportunity in and that to the good again, have we things evident we we to have focus can

Douglas Mitchelson

And then on traffic? it. Boost Got

Charles Ergen

major that, but only of now material have amount have don't We spectrum. only handsets about disclose -- we yet, is a it's our have it, we part not only maybe five have five can talk that a -- XX, John we have -- because part in Band but five which we

John Swieringa

Yeah.

start that optimizing own do chain that, we'll perspective. a on be Networks iPhone. markets, up Charlie those is support network then to our days. of a going really Boost and ready we're growing markets customers. getting on it role including well. for to Boost and to XX%, Mobile on available going As We're there rate says, network, portfolio loading we once continue to loading in supply clear a business Infinite then those They're our we're have from to just as and to early track and products. and be And the We're going

we're year. this So ramping

Charles Ergen

one has And network make over the things radio. built we voice should with a one done new we've that distinction. of Realize

Chinese only at other scale. States So in we're really person does in the that United the the world partly that than

end. able to majority next with is [indiscernible] of is of have to that, to the is your And way And your on do the -- of vast do network. network new our the all year that's step utilize majority then goal the going extent voice. to majority the traffic population the have you our our obviously, by So that be

where not feel we're there But it gives think yet. for that goes. a we you So

Douglas Mitchelson

Great. Thanks much. so

Operator

Street. comes Our Jonathan line of Please with the Chaplin go New from next question ahead.

Jonathan Chaplin

Thank you megahertz couple the very more much. A questions on auction. XXX

So And certain assume not, billion. it based on certain? what looks it if probability would valued like spectrum to that value spectrum a of value auction, the was weighted? the is the at if of be about or Does is underlying can option being it exercise the value the the $X.X still ascribed like

Paul Orban

valuation This of in this time. just year-end and a the at the value still is saw weighted money that probability quarter-over-quarter Paul. Yes, impact. you They time is it's from really point change

Jonathan Chaplin

much… How it. Got

Charles Ergen

giving -- non-probability. the amount don't we're And we give not

Jonathan Chaplin

or reference Correct. Can us establishes of you what a the value transaction billion sort reference value? give establish the the that $X.X

Charles Ergen

there. can give other there. numbers And know forth who won't auctions out sure the and data but We out We you you you look specifically, is so that at I'm to. it compare

Jonathan Chaplin

Got it.

Okay.

it be or megahertz like might you something for would XXX at? So something that like the from T-Mobile's purchase Capital look Colombia that

Charles Ergen

something like be that. could It

Jonathan Chaplin

exercise And FCC September you is -- by X? intention to till? been then us July it still And extended that notify has data your X it. the you tell do Got Is the or when June of the X? have can

Charles Ergen

extension July because exercise It's they the on I the data, little X. understand complicated request, but haven't is they -- a ruled haven't ruled on actually as the

Jonathan Chaplin

July X. Got it.

Charles Ergen

awaiting the really. still formal We're

Jonathan Chaplin

last context XX use some around for given it that you for use you that? for fixed looks then that it wireless give you a broadband on Can And us one mobile that like can't gigahertz use. one prospect thoughts the more there's might your

Charles Ergen

the I their Well, analysis. that us, disappointed mobility think engineers a are able could key the I mobility. used believe on their FCC, use, had we and I for They have and they at look, the really we non-interim good weren't But us, with we mean, is respect enough decision own it -- did because information. that for we're

wait imperative -- that mobility be see. that, again, I paid So is comments we'll just have given and is on that would believe would us that compete, to XX.X we the be the auction, think to XX.XX can you but we place FCC that given frequency. opening to to at go, another And imagine for

Jonathan Chaplin

guys. very Thanks it. appreciate it. much, I Got

Operator

from Barclays. question the of Venkateshwar go next comes line ahead. with Please Kannan Our

Kannan Venkateshwar

Thank you.

something. I just megahertz Firstly, in wanted spectrum, XXX to the clarify

-- some of the then the I was megahertz for on concrete can helpful. these based else instead XX-day you or have one out be think when application spectrum, out potential cancel that And of the or XXX it waiting see this go That you is out last about an just of an before some secondly, to on discussions week, some license funding why get maybe I and explore? guys an funding. of partners period? what you just think terms the cancel week there extension on And with follow-up there clarity that is extension is may we option would in be to wanted maybe just I licenses. to having

Charles Ergen

there Yeah. spectrum, we On we XXX megahertz I strategically valuable just we to don't it's it's are want and on to we obviously. other that believe think spectrum than compete, need where comment

made XXX we On mistake. megahertz, a of the cancellation

website, SEC lease some markets. can't was terms lease And had T-Mobile of the a we you with go the when by So the to we for that -- lease, that up lease.

license. it the in lease, then we So went canceled the to advertently cancel

to that FCC was will an part. have we So that footfall think on But and our believe -- the be that not and don't the to on notice plug that, going lease, again, will to we issue. that's that a put cancel

Kannan Venkateshwar

Okay. does the on debt think XXX secured this And the for collateral because I trip is anything that?

Charles Ergen

no The because mistake rectified. I get to answer [indiscernible] is going believe the is

Kannan Venkateshwar

I working the if into competitively, have which really are to evident I is mean, next Okay. funding, you aggressive All I you need on obviously business. And this But want then you a capital-heavy maturities, then -- wanted as mean to go right. year. be just

capital you So need for well. as that potentially

scale fund funding, maturities that or a market mainly how when than to go the year? you as might go you for proactive for, so amount? about access to more year you market of maybe the maturity might the we be early you debt think And that might just think the next and Is about in we should be -- into

Charles Ergen

first I when you the it, -- I look mean, fund look, debt. the is to guess we at priority

And paid that opportunistic -- teams to and navigate then when you can things control And management we have be I'm focus do can you those really right? they windows good, have narrow and can team and this the I mean creative. here why well navigate that, that windows. again, quietly are think, sure gets on that is to And beyond you that's do confident focus. they and really when just So we that. that's that we'll navigate narrow I have to make

And looks today, say is than I'd is is, the right? it full, truth in I half think -- at way we're XX% empty market half The This think empty, XXrd the been our even is more I year. maybe company that's is the around glass right? a that us

So we start didn't yesterday.

So from here. lot starting seasoned a similar in team. situations. scratch a It's of we've had management experience We're not

assess So how to together. how we know work We know to risk, right?

And we're asset rich.

as that in spectrum network. We're up another is for network billion not gone as that ours. a $XX There spent world the has have we building advanced value. world-class in is arguably, So,

is I've XX and in not another -- and There you're traveled it's ours, advanced and up as working. as today So world. the operating network again, and markets

new doesn't cloud-based, voice So with OpenRAN exist. it over just radio,

little So data. read X data-rich people is we have advantages AI. some [indiscernible] And think lucky don't and place needs most a but the -- which in And architecture. AI, most the about and we've operates the nice, an kind And network. you you And the a I like we're is a thing an a In more getting better words, built you better network. wireless cloud works to access of other be IT sophisticated in telco. if network as IT you have data, that that want a network very lot

a to That's a start has already take but network. it, operating telco there. we're Our to IT decade for an them. that transition It's there. They'll to get going competition a like is tough do

if be have it's if talking not to place impact, And so think it asking need network a first you to that just that. world's in you have to the when access didn't phone able your to you're probably have think going you way is fingertips the a information to going to now the you're you you -- at is -- do going AI see before, to your an have because you're questions. And but

designed the killer think to term network we're will we ultimately that goes and -- application think it, -- -- it's that, that that. of take all from strategy advantage we your we obviously, fortunate But that the be we perspective lot not at half-full things and investor Street long-term of that, your Wall perspective, from So on and going with probably AI long look and that short-term a a that you have we've relevant. a when

Kannan Venkateshwar

Okay.

Tim Messner

We'll one here question analyst this the go on we to final Rachel, Tim. media. is take before

Operator

Thank you.

from analyst Please MoffettNathanson. SVB from Moffett question now And will community. the question our We take comes [Operator final ahead. Instructions] our Craig go with

Craig Moffett

I back look I they debt to Q&A you as earlier spectrum correct asset to way markets selling to Charlie, Hi. in saying said Am open of finance a be your you're like build? were go your rich. said the Yeah. want closed that would the where and something you to you -- but are you. portion Thank that effectively in you session, some reading as

that there to are Am already you I mean the could the exercise of that think sounds the done use I you referring spectrum you saying you as consider your are were that are that's you be that, since also or to saying were you reading thinking bands And for XXX less critical debt build collateral, if would as willing presumably an for so, guess you have like that spectrum I'm if if that, other option And correctly? offer they it I in closed. not markets sufficient but available?

Charles Ergen

maturity. for our returns, is XX% I I yield trading literally right, mean, think to debt Well, that

doesn't competitive but is well that's to in ability markets. debt That today. our access for a the could the change, it it bode way to way So

just let's a opportunity more want put I way. But -- levers I anything to is think and So to we our to than comes there's business, you there's certainly when think that not have realize, as us run it I go table that business. -- look Obviously, you to assets. it's get need person the repayment all for the where get Obviously, pull successful have. people that we there. at a would strategies levers we're on we the debt financing business going growing to when it to do for to and into that think

Craig Moffett

All right. Thank you.

Charles Ergen

Thanks. Yeah.

Operator

And question of line the from questions take we will will Next Bloomberg of [Operator we Instructions] our Please Moritz take News. with now ahead. media. Scott go members from

Scott Moritz

Scott, is ramping going it News. there's -- a It A towards sounds possible The like on Boost. Hi. Yeah. launch. Bloomberg question about

launch? here. is the in iPhone know the gating a Curious factor voice where calendar the network call the You about you over a new coming what on there would and months. But have that's few with date full a

John Swieringa

John. Scott. Hey, It's

going as Infinite, question your which be to Boost So our I'm postpaid would offering. meaning interpret

Scott Moritz

Yes.

John Swieringa

the competitive So of way. Boost of do our Boost looking Boost network with there to and of Infinite certainly on today. launch in and with ramp year. We sort we'll we're have iPhone progress We've to back devices got But products network Mobile more looking our well. as marketing we're the to half opportunities our Infinite, own on be bringing the distribution as own

Charles Ergen

postpaid. And Boost just realize the Mobile iPhone on to coming is It's today. prepaid

Scott Moritz

launch? have And date did for you a

John Swieringa

We’re I see are the date going us year. share willing now. our to not a not competition, right obviously, we to mean, broadcast but strategy – we in half of ramp you’ll to I back our mean, significantly the activity

Operator

ahead. with of from the TR comes Paul question next go Please Daily. Kirby line Our

Paul Kirby

at for you're XX.X Thanks This wanted Hi. rejected -- Yeah. taking to my the are you to FCC the submitted by disappointed up open XG? you is said they in folks the that surprised it who studies technical Charlie, call. gigahertz, do plan for what the the –

Charles Ergen

-- I think think and I thorough look, trust on thorough look staff Well, I mean, did a doing SpaceX talk job. to I is having good there. think they with studies, the inside I to them job. Obviously, a and -- the out at engineering been do a job

win -- we one. our that it didn't believe do on I were but all studies believe We can So them. is congratulate could that we valid, have

I disappointing, call think it it's -- it's but not I just -- don't So it would surprising.

we about frequencies and harmonize awkward support C-band the have that, States that, also commissioners in surprised But that of look CBRS, given rest we'll things. to been some to we're take was That little would other (ph) be the for of that something for to And a higher that the that the where and a -- go world. the study. because and hasn't publicly our get United CBRS versus at trying see CBRS other getting -- power that with thing and able the talked that look haven't again, other we're they

spectrum of compete. country As to awkward that's We're around have got CBRS the middle the a this a C-band world. of the that's only kind low-band in band standardized we country,

but that to that. it's get -- So nothing, should the the so a a fight in that do that if look in think continue imperative the the that look all at be think we'll that -- country, and imperative best terms I at and the we FCC it's should take make it's for don't I something make the take decision decisions or can best I know they what of -- we

Paul Kirby

looking when to at, clarify, to you talked about right? they're earlier just the the XX.XX, other met And you XX.X band

Charles Ergen

could said that FCC to but XX at XX-gig XX.X% to up. perhaps XX.X from the band paid auction That the looking paid fact given the that paid for it the The ways, that And -- and the DBS million for was is mobility. we spectrum spectrum given I have two wrong, be opening XX.XX Yes, that might we is to a frequency. decision the of band credit. we terrestrial to rights News we and XX-gig, at Corp. XX-gig acquired for also and auctioned, Again,

pay for didn't anything By SpaceX spectrum. contract,

who So where priority. it for a and it's of hasn't for paid somebody a spectrum funny pay you gets situation sort

So -- good job do with but it. they a

a can is. to at did big is picture disappointed, thorough think looks look respect analysis just all FCC their at the what I interest. we're it And say has like and again, to they decision, got that. is that So it and the I look the And it me public but of I

Paul Kirby

you. Okay. Thank

Tim Messner

think All questions, months. roughly in it three and for you I see here we'll Thanks right, back for today. joining. Thanks everyone, for that's your

Operator

for concludes This you today's you may participation, your call. now disconnect. and Thank

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