Earnings call transcript Q3 2022

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Operator

Good day and thank you for standing by. Welcome to the EchoStar Corporation’s Conference Call for Third Quarter 2022 Results. [Operator Instructions] Please be advised that today’s conference is being recorded. I would now like to hand the conference over to your speaker today, Terry Brown. Please go ahead.

Terry Brown

you. Thank and XXXX. earnings everybody third for to of quarter welcome morning, call our the Good joined by Manson, am Accounting Kaul, Secretary; I today Ali Officer. President President; CEO and of Pradman and Hughes; our Dean Butt, General and Hamid Counsel Chief Akhavan, our

call or As the their your media firms mode invite you that we participate in in ask usual, listen-only not a to on and identify participants report.

audio recording, which ask do also respect. not allow We that we you

the call the disclosure. over turn Safe now for Harbor Dean me Let to

Dean Manson

Thanks, cause results results statements Terry. These make from forward-looking XXXX. Litigation our materially we provided during this of different statements by historical from or and be actual and Securities call, statements known of All involve unknown statements could risks, to to historical forward-looking Harbor other fact, and made future the Safe Private Act than uncertainties implied constitute results the the any forward-looking by statements. expressed Reform pursuant that other factors

For call filed a XXXX we annual the cautionary appear. as make the make XX, and December made refer list subsequent and year applicable ended filings forward-looking understood the XX-K statements please factors on any our All Form report during statements with of February for should XX those on be SEC. to our being we risks, to they wherever

our statements. should not and statements. reliance forward-looking described place reports any any no We assume You in should responsibility risks consider carefully undue on for the forward-looking any updating

the turn Hamid. call I’ll over Now to

Hamid Akhavan

good and Thank day, everyone. you, Dean,

for many for will An the October. keep to we Chief on well progress. him you Officer retired contributions Financial in and is some and And his as future. early his are him wish of underway, our and Rayner like informed search David would you thank we executive our replacement Operating As Officer aware, in Chief

question-and-answer I we from today, will for third quarter. agenda for call operational that, activity brief After And the update business we’ll on the financial our of a move and will strategy. first, session. provide to provide an As overview then

with our Let’s financials. start

Our is $XX compared XXXX was quarter partially result and decline growth on the year, That of $X basis, the million. achieved consumer third the have the primarily which in due growth. of the million last lower offset exchange million same $X U.S. though by was The revenue period net our impact third quarter in we to million of in a $XXX foreign was to year-to-date negative currency in revenues business. from enterprise revenues of down

the shift from in due million, customer last mix also material to XX% and increased as subside. to from enterprise, primarily pressures inflationary quarter $XXX mitigated Our was decreasing we hope but adjusted will care be which year, the EBITDA in costs, revenue consumer

$XXX that’s business momentum quarter, In with the continued enterprise up our year. we third third of from in new orders, quarter last XXX% saw million

business, component both Our This XX% period to the addressable better opportunities extremely diversify a year-to-date internationally, us domestically will XXXX orders continue market. an within strategy. of one compared that our is market, enterprise allow same about large to remain We last the our are is excited higher to by key which and year.

unit Although segment, through consumer in and our investment is it market gross this profitability capital this scaling operating leverage. is lower margin higher in the segment business minimal amplify than will its

consumer program JUPITER with three in the last line spend to to ability in expenditures quarter measures X generate cash. preserve mix necessary lower $XX the take to to premise regarding primarily were fixed $XX to the revenue in change and intend The our decrease of was equipment. in year. million our million due We costs in satellite quarter on compared Capital

the quarter through cash during $XX the marketable $XXX year-to-date and billion We quarter cash $X.X million September million was minus CapEx, with is ended of flow, as defined Free securities. XX, adjusted and EBITDA XXXX.

Our cash explore business could us to opportunities economic current the balance foster It that affords of positions given flexibility our uncertainty part investment strategy. of conditions. the growth, well, us which is

shared undertaking our call, financial strategic is capitalize earnings both course. you last both with as position inorganic. improve methodical on and to This long-term I designed our and well and as short- organic growth our opportunities, On to competitive

are we In our services that we streams bring pursuing service. use We horizons. JUPITER and X, optimizing of three X call until assets parallel I work existing Horizon into are

regearing of instead continue service churn. We are optimally growth subscriber focused to offers our on capacity yield and manage

potential Fusion opening For our in initiatives in alignment internationally. the staffing We expenses the HughesNet continue churn we recently bottom performance. lower enterprise launched consumer reduce to as help optimized better instance, trend which opportunities we revenue operating to manage U.S. well preserve operating the as to correlation our service, to our We’ll while line unproductive expect profile around strategic our for and with expenses.

Horizon Let me will the X now and turn some it Pradman, over on additional quarter to provide activities. specifics who

Pradman Kaul

current In our Hamid. and continues American to you, our on customer products and team optimize effort to satisfaction. our continued our offering focus Thank North improving services, consumer

rolling XX% plan. recall are being well These quarter. that data plans new earlier by received more from increasing the prior we ARPU began HughesNet and strong, this per out service You remains customers, our will year, our with

from the satellite possible to yield capacity our We continue optimize fleet. best allocations performance to

available early service meeting customers Hamid in for in U.S. with December, HughesNet plans to GEO southeast, we – latency to and a mentioned, markets satellite with And successful U.S. launched availability in been new service our been low making early combines we After our will has across exceeding the available plans This Fusion experience or a HughesNet that’s reliable to great response. past Internet slowly be the fast. customers responsive, HughesNet and expectations. markets. launch overwhelmingly as Fusion wireless reaction other it quarter, began select By of customers our Fusion nationwide. have positive, that region the expanded

their new retailer contract network network to for SD-WAN their a additional out equipment service and service with financial the company services, in customers petroleum equipment equipment their a XXXX, chain leading for order their million to and enterprise and North a of to our $XX $X.X and contract third covering American we the to quarter, upgrade the Moving business, quick in services million a markets. restaurant SD-WAN extend a secured and of stores, for upgrade contracts retail, and extension Hughes-provided corporate energy deployments network, networking

as antenna available to In production subscriber We’ve well continued inclusion in program, the our we far by expect modem operational ‘XX. delivery services. systems all we of as support additional commitment received large terminals XXXX and so in they large and order for to significant production our electronically OneWeb of started purchase gateways once satellite an Also, XX are and We’ve as steerable gateways gateways modules begun OneWeb shipped a a complete OneWeb’s have into volume shipments. for of planned.

Our military an upgrades procured award for base. state team the provide private both defense group and the extensions several an and additional civilian market, government won network deployment service to agencies. another In in XG awards federal for

Now to operations. international our

available. our and service a Ka-band As the capacity. premium We maximize in is Internet where in Internet U.S., fiber Itellum, terrestrial utilize Latin capacity agreement Costa to to market American signed Rican not to our yield a with provider, provide priority services the are an service wireless on our

and high-value ARPU. backhaul Ka-band that capacity as We our allocating subscribers selective In tactics screening pricing Mexico. addition, are in capacity-optimized such cellular to on are through remain improving expand we plans additional adding services focused

Our the satellite sales Brazilian including significant and quarter, utility enterprise third additional an new of executed a for business orders tool in expansion equipment services company.

agreements existing from We the service to our scope expand of order also bank for won a SD-WAN network. an their

And backhaul capacity we sites X,XXX company oil gigabit service. of a business well This the in to notable implementing services connectivity New a contract contracted XG providing In our won rural for deployed, our instead with a with field to major cell sites field while company And to engineering major opportunity. leveraging across the services India, with SD-WAN and and have maintenance for over company. over on managed we of project this way managed be provide extensive to services a provide network X,XXX X operations services infrastructure [ph] Indian are the continues network. is to of satellite backhaul now XX,XXX-site support telephone India. major telecommunications

including system testing, we satellite our In on of X and XXXX. continues terms in satellite to JUPITER begin first large program sales, test currently for which of The existing SES. environment. dynamic Yahsat the of And be integration. launch expanded The we’ll customers, with is deployments half track JUPITER satellite final a for the then would

Maxar with maintain to schedule. the We work continue closely to

business and JUPITER X will present in services for capacity previously a opportunity growth North South in America noted, add high-speed these regions. to provide strong As and our significant

call to me Let turn the over now Hamid.

Hamid Akhavan

you, Thank Pradman.

on X at Horizon now, not us and Horizon monetizing And the itself, new some and our quarter the the but JUPITER me in discussed of have team provide service on work launch update of activities, for X Horizon let we hard is launch higher only an X plans. with for the strategy. our service focused finds speed X. planning As X

offering the of We have of believe the eager plans. is competitive take market to higher-speed services highly a enters Fusion a to kind we offering. to new be service. with JUPITER We have will set we’ll also for market services And once X expect

strategy. participation diversification is and business, connectivity, products. leverage includes vast a are is on our scale portfolio, at hybrid enterprise X managed a this in business time. segment this focus will key strong services X we also manufactured Horizon improving exploring solutions our element acquisitions, business global of potentially operational our with market Horizon Increased our where which LEO-GEO we small about own

This brings X. Horizon us to

we and are opportunities. organic growth, and For larger for actively scale M&A our new avenues this opportunities of assets evaluating S-band strategy, term including longer inorganic commercialization potential of

I global our will our spectrum plans plans including sheet, engineering about expertise and our share our S-band efforts assets. excited presence remain as details and strong extremely balance and our on solidify. strengths, our trusted more We reputation,

now to the session. to operator Let it question-and-answer me the start turn over

Operator

Ric [Operator Instructions] of Prentiss comes question of James. Our line from Raymond you. first Thank the

Your open. line is now

Ric Prentiss

morning, good everyone. Thanks,

Hamid Akhavan

Good morning.

Ric Prentiss

couple my A questions side. of on

still of on to see to half that offer launch. glad I expecting JUPITER ‘XX summer satellite in did the Canada they ‘XX. mention out I’m X Canadian of for on a are track first service First, a see Xplornet

that entering think like date I’m just late does trying keep think about time? when Is X service, it and move XQ, June, Horizon being? that you look should it service talk the So about July ‘XX? launch under could summertime we your when that and of Hamid to still

Hamid Akhavan

mentioned. and certainly cannot be on regarding that more have than specific we them. can’t we have comments announcements We anything to Xplornet what mentioned, their may We leave comment their

We moment we track. that think in at at accounted to – first much our satellite for on is and track half schedule. moment, year, in this of the be And the we’ve are the on good very launch a everything

certainly we second but So that be the we’re Ric, post-launch expect not able additional offer year. in you any offering half the service there to of will details, a

Ric Prentiss

Okay. as than And fast can it’s or from you in maybe how long having? service? but be X testing, give date, it we in rise you less how Are far us as as ballpark launch how as from far should obviously, are rough to months a a it’s thinking launch long

Hamid Akhavan

Yes, give JX. you more but But satellite X X about there. it get ask it’s several let specifics or to about the to up takes me weeks, weeks Pradman

Pradman Kaul

Yes.

it X tested I confident operate. these then as debugged, weeks to that probably specified – to think it to full we have put we’re it’s weeks another X about operate typically, satellite will it – takes debugged fully the to And and but get service. X systems, tested us it into in not so

Ric Prentiss

Okay. Good.

is is XX-year about you is you’re Horizon to service. a is the launches. a optimizing X X there to definition until we when JX frame And of it the plan? kind Obviously, time what’s that Horizons, right X and longer-term? X-year for get here’s time Is long say JX Horizon – Horizon plan? that to Horizon of X, think What How time in X? X X envisions? it the frame ballpark Is beyond a now, what of into Horizon a frames X- launches Horizon As different

Hamid Akhavan

Yes. question. Great

on The output me everyone are start parallel. the Horizons effort worked by Horizons time all different of frames. reminding will being appear in three Let that in

Horizon are working we as working we’re aggressively and X. So Horizon X just as X

this will beyond. be and So that that perspective, impacting we look outputs and XXXX at these about three is X from streams different Horizon our financials The work way is in are of of measurable time. windows activity with

But forth. Is couple But it latitude, So sooner, you and that’s a bit an to The XXXX we be think impact is might have efforts and is absolutely business back XXXX. find be that should pretty model that right target think. to now need may We because we we’re see – set need us one that’s it it a – XXXX. of see to Simply of we by of be that would the acquisition quarters depending the ‘XX.X? XXXX our the and what synergistic what of we and that we think able be we expectation, to today to sooner the happen be to give if would complements on do. ‘XX? than working we a what much proper – have window.

Ric Prentiss

Okay.

Another my side, in significant was wasn’t are buybacks there, it one XQ, from XQ. stock out still obviously, large not in very but

opportunity at the You trading per providing about be look services base. we with you’re the opportunities the to as cash out might being the some buying well think versus how Horizon there you asset balance other at mentioned, share X, basically should M&A stock some in viewing small sheet, customer strong How as there?

Hamid Akhavan

Right.

the yes, At keep deliberate partly not purchasing market of the this sheet, this is road we’re – on our right and conditions road buyback. is actively cash the we’re but terms to – us the of think execution moment, decision map. we shares. we all decision share strategic the on also balance that And for commenting in because map the So of experiencing, a

We a today. have and an sheet And continue, have that we we than think the proud positions very think will acquisitions our condition balance making significantly would of that we will strong we position. accumulation we cash Cash very that more would to of be so Horizon don’t well the king us Horizons talked the for is ever. are that impact cash execute impact I be significant that X or about. the deplete just fact

of business. will be cash cash-generating a we in consumed more But use again, probably Horizon our opportunities So put and X. position to are for

cash amount this, As of you heard about generated and talk year. this significant we’ve Pradman me a

business our enterprise as generation enterprise cash that, to we We and transition bottom-line continue to from optimize focus. a fixed optimize key our our and always growing a the our costs way operations in consumer is business,

enhance will our we So cash position.

cash business have. We Horizon X will necessary the complement of to we use some the as

acquisitions, substantially competitive different we expect and additional significant execution. we working more vastly would M&A. make give should if You not on for that X, for obviously, are them, and just And posture be and Horizon those then us hoping

Ric Prentiss

been and you’ve other in seat me, I’ll come over months. a Last difficult it Obviously, to just the X as one from macro some very during you Hamid, turn for folks. you now in environment, to. talked

stock looking the or what things I place as is I you the put think of say, of significant communicate far on stock a can think no When equity, or here in get to what are position, direction? have think the get help do equity cash what You net to along? going debt. kind can to your the do trading, move where how we the you at moving other What’s of you is to and the as in do catalysts list

Hamid Akhavan

the in one. framework Right. things. have that have a right the we discussed of We’ve place is One it. think couple we put debated I strategic mentioned that is I it. Obviously,

we said it to absolute this has business forward. has is at I shared the again. views And that raises believe not taking been business come on and the with We levels price, want we And we going to nobody want an we’re indefinite precipitates that, thinking and be bottom. after rock patient. approach terms we at and and opinions we We other share goes rash, – we in seen are is the ever there. approach based to sustainability being it that want a way down full in it We the that trading the Board. develop that sure to we you don’t will value, share want be of growth. that also sustainable right this degree in Having we want very horizon raise to not beyond other any to want a and our we full potential and experts industry. count a seek say be we when our execute the want then make for industry. where price be way that on tactical in the direction heading moves to our how share That obviously of point and to some think can of that, We do long-term on to in that some in have the in has based announcements to to short-term-oriented strategy, we just patient think some have Look, price be don’t it taken I are

So, us to kind But for the understanding make market to obviously don’t the mistake. a you want movement move of we’re – expects on and about, we expects are me talking things.

go You look M&A mergers the that in the diversify instance, do don’t the not wouldn’t space If same for same in – space, doesn’t creating want and of ahead of in is the larger to our I I would scale space. it. terms in happening at business, it some

not about are our we’re very long-term we of prudent business. orientation thinking of – So the

So being to to with the It is price. and my the for I’d do sake absolute share And of do share, it long it just pressure to we But our to we of raise intent shareholder way will something saying, resist want active. right focus is the value way. our like goal.

a focused on balance, are understand is we it, very there delicate it. So but we

Ric Prentiss

very good. Okay,

come Looking forward forward. as Thanks. to I details more

Hamid Akhavan

Thank you questions. for

Operator

of Michael question [Operator comes from Instructions] next Our of line Citi. the Rollins

now is line open. Your

Michael Rollins

good and morning. Thanks,

of terms may as terms of have? built seeing you if in competitive the alternatives fiber Thanks. fixed where the segment, as wireless you’re an What well other your customers consumer currently the that competitive in landscape seeing Just are future? give update curious in you in can on what us maybe

Hamid Akhavan

the has business Look, are have Starlink they grown Sure. also they have to some dynamics fully aware has at our Starlink you’re of have new for now a almost segments that, been obviously, themselves, well, some in of competitive impacted for year. – you while – market the created aware some the degree.

seen it not consumers. the You’ve are maximizing consumer number of really our want in focused that say just I to on numbers. But we

We a We we now, have yield. may but are maximizing have looking less growing ARPU. consumers at

So a grown on customer basis. has per our revenue quarter-over-quarter

So great yield. maximizing customers. we’re keeping we Again,

as get we should business, more on what I and focusing consumer of of the out So don’t we both focused as domestically you think are not the than customers be number internationally.

comes made it never interest and as fixed Obviously, the zero in Now look, infrastructure to every place. fiber near fiber rates rates capital, for wireless, to sense and historically with unlimited. go deployment was borrowing interest low

go could higher, density in go I You everywhere. do With low places was justify that of think very ahead I was can rates and interest on the investments acceptable. return population coming slows expect investment where down. that, fiber don’t and

today infrastructure You couldn’t for even now cost deployment. and at less borrowing so of the

saying, market long I think a is self-serving sound, market the I as coming in the our – think it way may way. as of

confident we to doubled that JUPITER shows the in capacity is think up, that X more we just of have perspective. our United homes States We We from about remain XX broadband than what when million there had that are date. have a think we underserved

will megabit the than on We think strong be XX more team We that reliability the Horizon us. plans from the market very per is our second with speeds unlimited in Fusion helping the is with working and way running and position and marketplace the XXX in X. away latency our coming looking are and at

that are our – to competition, forward. we the to up we going blind not gearing improve are actually position We’re feel we but

Michael Rollins

Thank you.

Operator

next please. Thank you. our question Please standby for

from Our Quilty question the LLC. comes Analytics of line from Quilty next Chris

Your line now open. is

Chris Quilty

Thanks.

the the margins And Were business over through full and excuse do costs specific to quarter? get we have didn’t have about Hughes rollout incremental EBITDA the there the margins me, next the quarters. the XX-Q. the You pre-Jupiter costs quarters? were X in But on impact at they look hit couple in lowest the some I of XX of in how

Hamid Akhavan

of down. come enterprise. in I that. The those are due I the subsides, think EBITDA consumer a a as things in mix go Yes, shift think all – will that we come some EBITDA. the from margin They Obviously, margin it’s are to from to going been to material the those in lower other a care there has bit costs those But obviously historical I shift terms, happy which on more the be been be – have up. impact enterprise has would consumer will Look, to recover comment primarily and customer on transient. our some has back of second. will pressures margin. costs revenue add also Yes, the to a to and inflationary comment some that as We think at comes inflation costs more will that up.

some have On as know when in terms doesn’t the EBITDA, go gross margin. CapEx. that other you on hand, enterprise cost services the the below much you business have lower has not to general that are It of

consumer. will less be the here than the drag business biggest So, enterprise the CapEx the impact for having

if of fastest So, business have had our a as seen, growing a of probably business, is look you at enterprise of very, consumer you one in growth. the rapidly, very at to we terms years enterprise transition have

at been business, of selling, with shrinkage that replenish we structure could if that scale as net can see that our from adjustments the grows, have it the – for business it business. ultimately You it the in grows comes of can profit that that loss cost consumer

got the think business, we to do have So, scale that. faster. we like actually think can you we enterprise We

transition. short-term, enterprise which I can account the hope midst using you that. to answers shrinkage a in I see some are EBITDA large will – for blended I mean I as TAM number. of diversify think obviously, we in that that very business, we a the the But has

sure wanted that at EBITDA your are margin, looking I also also answered I we not to the think just looking bottom. are at net question, I we the at but make income

Chris Quilty

CPE-related for quarter piece, correct? business in consumer $XX or consumes $XX the just think million is the I And CapEx a around Right. that million

Hamid Akhavan

you have at hand? – the Terry, have number do don’t that I

Terry Brown

this is Terry. Chris, Yes.

can think it. follow-up ballpark. I in that you And the that’s on with I to relatively double-check

Hamid Akhavan

Yes.

– I think please. yes. consumer ahead, Go the CPE

Chris Quilty

cost, going I not business, it’s say was hardware CapEx that’s a revenue. to No, a on enterprise the

Hamid Akhavan

enterprise Our has in a of business it. number factors

enterprise is not business Our pure connectivity.

a business. of enterprise services lot have in We the

in some that he of mentioned. deals services. enterprise a manufacturing have enterprise the business, has We referred of Pradman the to number

does connectivity equipment, the for for services. cost obviously, for CapEx capitalized. quickly is piece, the not pretty but not the include generally so And the recover And material we for and manufacturing,

Chris Quilty

several Got the call it. And slow capacity gas the just that back enterprise bleed basis? to more was business, looks shrinking terminals that of from – what that And hooking satellite business, we it enterprise acquisitions in actually services gateway we And see business? started go-forward up no so just X growth traditional for a if slightly. circle put you of it you business organic stations. How on a on is the the past you business again, to managed on underlying and the sort the market years, in put have growth top? And aside, aside to or sort much growth do Is of the see Hughes or the it contributes lottery what been of had or like COVID layering business. the years, aside better, growth year is are

Hamid Akhavan

go ahead. please Pradman,

Pradman Kaul

Yes. Thanks.

ship VSATs world. all both building the right, of the for significant gateways is consists this for business and operators we services the a actually over part. delivery and enterprise parts, business two part product different the think role that There networks I of

the has X. items the become one the that the of That’s I over standard Jupiter accelerated that technology facto world. all de is much pretty think of

X product Brazil so nicely both our had we at that backlog. sales countries And years for a our the are in very our you alive big jobs So, order services. years. are Europe, come supplying new X we and – won, have we in where we have And some Indonesia, to has real large if India, terminals, that last we – example, OneWeb, contributed like in volume plain gateways, X and job X supplying area, input system to years supplying are not sales huge is that they just look years have to really then

as of our earlier. thing, good noted, it’s as course, is much are lower, a So, of mentioned part you the one the Hamid But margins strategy.

not business, get get is you to net pure way service the that is in and as all itself it a it don’t the the by opportunity. you as service gross take significant as the income, But You the margins then margins. down difference

Chris Quilty

Great.

Pradman Kaul

answer your question? I Did

Chris Quilty

Yes.

that distribution? think or something, I do I to again. mid-year exclusive And your next us, and us – launching we that business launch hopefully year, closer in answer. are does they the gets final can service your subject, switch India? were remind full But that is if assume OneWeb to sometime If that to what an business specifically you

Hamid Akhavan

Yes.

have market the Ku successfully. constellation excited business, powerful We not Because only of – it. launched we with off. Indian business exclusive existing last an strategy to agreement significant take on to in the beginning have in will an and Ka way. also XX with OneWeb. the distribution in And India OneWeb. make us just about be satellite very will rocket very have but And LEO The that’s it’s we going India. we GEO/LEO much satellites implement our They in able more Very a is India whole to

the is participate excitement whole to and in growth telecom and we there. this business So, hope excited, in Indian business that structure

Chris Quilty

much. very you Thank Great.

Operator

next Thank you. standby for question. Please our

Our Raymond of line next Ric of question comes James. from Prentiss the

Your line open. is now

Ric Prentiss

taking Yes. follow-up. Thanks for the

investors get S-band. the one open questions you some we think I I of that from think mean I time. top is had

should asset timeline But Street to on think it, there? the Horizon out more the should what have figure but information this what it can on X. and that’s what you I partner investors thinking you How should color S-band? I make into up How going do raw want raw to your are they together we on it we S-band thoughts you up, to what the touched about are us information think how in Street? came potential that the or be developing sure briefly. your didn’t if You come So, think put any are, trying about for is to that asset frame about other the potential that – for with questions services?

Hamid Akhavan

great a That’s Yes. question.

EchoStar. for S-band the not for story just the So, world, has evolved

If device, connectivity all standardization NTN, it ago no the from so, about, year or don’t you think there from to about etcetera. satellite know, direct way handsets, from I till XG around was the a

that’s XG model for limitation smaller, cost business exciting fact ways, even S-band system have the exciting, moved for happened, has that NTN launch the now very the specialized that exciting. of standardization restriction, has maintenance looks many in given would been in the devices. of not and – LEO and been So, perhaps as the But significantly

you provider just don’t specialized devices the manufacture, also device. come have devices – of If from you customer specialized And the the use They the normal basis in pockets, exciting design, distribute from a device. second it’s consumer to are to service that don’t perspective. terminals. in don’t that have just to have perspective it’s normal end the you carry develop, have subsidize, the and they of They very perspective could device, supplier a their exciting consumers of a have devices where to don’t

a months. that that’s remember, has past the So, That the game changed. – new But XX game. only has in changed game game

have the XG mentioned one manufacturers a to market, from to service to come that market. be wants NTN the populated they devices on I would XG have device to sold requires the the of would the just and and if Now, the based it in bring ecosystem NTN.

to couple right. away just the those I or mean for – couple just It terminals of in manufactured, the the being take through existing you mean proliferation, from and the terminals to not to devices devices years will next-generation populated a X ramp would make to is set. work, be sales. the standard need to are I has chips We it chipsets be the up. a years significant

when So, at the ecosystem. have of drives and that element you all you look kind that, timing of an

you player, I you is get in handset at, say, doesn’t satellite can’t market no have You it It single in can’t, no matter manufacturer, service can manufacturer, look player – you There who single no provider, carrier, and none. walk all. the operator, player.

the players don’t unilaterally to and of going why That’s number And why that to have it just in it any work. than place almost also better of ecosystem the a make understand you want a you of are us to picture, and satellite from on partnership and we announcements it. will that, have we the prudent even one very having But That’s that are collaboration else, terminals the but full that were of picture. to is said develop perhaps premature market the I provider – to why any to require of is size for that give will not manufactured anybody that’s make sort the not when elements takes it time. We understand the hear you announcements out agreements become that every all the not announcements, financials focused all reality. that required mention opportunity. it of angle We manufacturer there. So,

business. have We been satellite Europe EML, European our mobile to in in in connectivity handset

that. done have We

devices for specialized but for ultimate neither degree. the nor in to which investors our helpful customers. We we in it not is to premature information are question to space, your LoRa. I want answers some today And we doing with releases don’t hope come that understand

Ric Prentiss

No, the happening satellite and There world out – companies. other in there announcements a T-Mobile with communication Globalstar, a Yes. been unnamed with of has Iridium because an with partner, SpaceX there, lot is with Apple that’s Starlink. lot

just it is, on there are to to field? you put interpretation it are you my the what’s you and not happening you the So, talks, in discussions, are out suffice not say, ready know sidelines, on

Hamid Akhavan

I the fair my would that would conclusion. game-changers. not say on I be were a also announcements that’s are say the I other If made today would sitting conclusion. side,

the basis. those think here. to viable we use They another. to whole we the XG. or pure don’t any think a the economics small to capabilities make a normal it’s calls, one on be based limited able in over build of service country answer are LEO provide a We think geography, even as handset provide commercially don’t solution calls messaging think or are patchwork system game-changers. people emergency the believe or announcements just it that nobody coverage a we providing of have to which those ahead first we of the we what breadth are, of of to else just real is XG-based continue behavior of None answer. those all, is direct industry. think or voice are and – when to And those right seeing anybody not comes service also, things which the ultimate of should We viable product to system, to believe a the or data today bring None We change on would that a on will similar of based greater

Ric Prentiss

That’s very helpful. Thanks.

Operator

At I questions. am showing this time, further no

it like for Brown turn now back remarks. I closing So, to would Terry to

Terry Brown

next everybody today the Thank our Okay. talking look call. to call for we to you you forward at joining and

Operator

the today’s you Thank in This participation conference. your conclude does program. for

disconnect. You now may

EchoStar (SATS) 3 Nov 222022 Q3 Earnings call transcript