SATS - Earnings call transcript Q3 2024

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Operator

Welcome to the EchoStar Third Quarter 2024 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. I'll now turn the call over to Dean Manson, Chief Legal Officer. Please go ahead, sir.

Dean Manson

Thank you. Welcome to EchoStar's third quarter 2024 earnings call.

President such opening Paul Hamid Financial Paul and Orban, meetings. We Schanman, not and with Jeff SVP CEO; in President Officer; request COO; begin John EVP by Services; followed EVP their participant Group a and will remarks report, as that of Akhavan, other from and Gary Swieringa, We President Video Technology of for currently participants traveling firms and is joining Hughes, any Boggs, is who for identify or Finance us of Gaske reports. enterprise business producing Principal

Reform do to audio make that during also safe statements the Act unknown results expressed by statements. the the forward-looking forward-looking and other of Litigation known our different which that we from you other implied risks, by future call, materially to we and from uncertainties constitute than statements harbor and provided We ask actual not of Securities allow could results this historical any Private cause statements forward-looking pursuant factors respect. made be All facts, or involve recording, XXXX. These results statements historical

of risks, to quarterly the our the public has subsequent please all company on the We factors a with our SEC. and for those some XX, understand disseminating quarter SEC Form November refer XX-Q XXXX, filings. September XX, today and For report ended technical filed list today, and accepted filings difficulties made

our ago. Relations So we third directly a website posted the hours few XX-Q Investor quarter to

we should EDGAR to being be appear. make now statements this is any make call we they applicable on available cautionary as well. All wherever XX-Q Our forward-looking statements as understood during

place statements. and reliance risks our refer cash reports any measure forward-looking and and XX-Q. With flow, for the case to any comparable responsibility and The OIBDA over turn any statements. We free for carefully release it described forward-looking Hamid. We earnings flow a consider of in presented cash should the You no assume that, to in undue I'll during OIBDA our this reconciliation free should updating on in in call. GAAP is our not

Hamid Akhavan

us Thank Thank you, Dean. for everyone. today. you Welcome, joining

the have as postponed of negotiation. we were financing aspects our transactions For under earnings few discussing past calls, certain

DBS I'm to of end these September, today. At However, of announced comprehensive transactions and one you series balance with largest of sheet transactions date. represents $X.X address already to DirecTV pleased of first, been the and which the which have restructurings and as debt operating November simultaneous needs. other a number we the DISH M&A financing interest Angelo completed, as billion Gordon provided a Of most well TPG maturity, in pay and to co-investors

opted via new we approximately who of XXXX. exchange XX.X% launched from and straight XXXX. for additional principal are in notes to financing secured billion provide lower will $X.X which noteholders convertible successfully Furthermore, due of of of which amount maturities the convertible and the exchange into received will noteholders with receive XX.X% certain XXXXs. secured and in the total due a notes, offer an a combination Today, we the executed tenders and notes, XXXXs convertible Second, extended

in Third, facility investors. PIPE equity we issued million $XXX by via subscribed institutional a

and We today. to funded both PIPE secured the the expect be notes

first of concern we the been these disclosure had XXXX the result a transactions, As has going in of removed. half

subject combined billion. The transaction company exchange by Services The conditions. namely resulting other customary offer a to approximately business, SLING, Finally, satisfying successful Video DISH will reduce late of Pay-TV take business exchange the would market. completion by in related we to EchoStar's and offer, our and more to and DBS successful closing competitive Pay-TV choices sell $XX.X to providing DirecTV, consolidated this assuming agreed of would sale to expected Services debt we our DirecTv close benefit better time, U.S. of consumers in highly value Video XXXX. closing The

While grow have we of operate business a now robust more the will independent successful, foundation and hopeful to the are EchoStar's DBS be exchange we exchange outcome.

our Looking at recent the bigger picture of the spectrum valuation transactions assets. business, our of the highlight

price. As and there wireless wireless its world, connectivity a is most cap. market could are an of to for tremendous AI-powered tens our further of primary dollars enabler, that positive rise gap resource, be accounted be will a will our the in value impact future spectrum upwards this look have current we billions giving asset of Closing scarce of and believe on valuation. We not the to in share connectivity

scaling through the We are a focused of business. on realizing for development mobile shareholders robust our and our value this

our quarter once I third EchoStar's for operating team's am results, with As execution. again pleased

continue Pay-TV on segment the base The We the growth the cash profitable significant manage scale. the throughout business and costs business continued Sling efficiencies the on during at quarter. customer for to operational initiatives. We and create grew and TV flow cost-effective TV improved side to focus DISH

in-flight march our as products services. expansion retaining enterprise parallel, our and our subscribers consumer focus toward acquiring On HughesNet. business, Hughes at we In the of continue aviation on we high-value and front, such

minutes, brand, the the distribution to the of terminated impact through improvements important quarter, subscriber few of and and ACP channels. offerings experience program. new third retail performance Apple and Mobile Mobile make about the unified additional our strategy talk through Boost we the identity improved excluding a in For are but we digital we've brand Boost added the We'll and a saw continue growth more in --

framework and XG our lower to enable focus licenses. us delivering XG densify wireless on significant and years. final our spectrum for to progress for approving network. to driving in expanding Open We our wireless for competition over cost a milestones RAN This in promoting FCC the up markets, in coming The certain key in build-out consumers our we setting faster tremendous business, and offerings concerns made will financial competition updated Overall, addressing accelerating by growth network. framework step EchoStar realigning and took market the new continue enhance our build-out

competition and the recent Paul network XG, I or commentary growth and the the both over election, U.S. native Before Open and internationally financials promoting innovation light forward solutions. advancing of look we domestically administration satellite NTN new nonterrestrial RAN, the to working call with and with turn and leadership on to cloud in Orban for driving in on

over Now Orban. to Paul

Paul Orban

Thank Hamid. you,

disclosure. We including we strategically restricted the of a quarter our in Hamid transactions substantially sheet. strengthen series the late of with our the our highlight on cash. As restructured removal to over announced going September, actions and $X.X commitment that mentioned, our resulting cash securities, marketable third our future, financial balance position These and of billion concern ended in refocus

from of $X the fund this this will cash. We billion debt restricted week return

our our a and focus on this financial the And rates a to and discipline Mobile churn highest efforts onboard result, manage subscribers. to of a brands are all quarter. continue Boost in DISH as with these evident goal We quality

due the Now billion down primarily let's financial for driven third ] OIBDA quarter. million, for X% higher costs fewer Air [ review fewer network margin our year-over-year, was to performance year-over-year, gross and Sitton more operating in by third subscribers. was million down $XXX Revenue That's subscribers. the $X.X to related quarter. $XX lower

flow. focused teams previous operating As on cash free our positive calls, maintaining are stated on

OIBDA. discipline in We cash and are million, plan. Free in spend for part million, the $XXX by XXXX, decrease negative $XXX in improved flow QX, financial meet to includes on our cash decrease operational line cash to goal debt capital in $XXX largely million in the is in prior our network, this driven primarily driven execute free a slightly interest. million with guidance. flow decrease service, by capital $XX which spend by for our was Year-over-year, by by This which our on track continuing to was due offset

expect to Video be of to Gary that, to turn discuss for roughly Services. continue We was year over the XXXX. With CapEx to in what it to like I'd half it

Gary Schanman

Paul. you, Thank

we a QX, SG&A X.X% across to and As supporting and profitability. In continuously growth, business subscriber progress we in landscape, we priority year-over-year QX Hamid of the optimization. of against operate across mentioned, achieved churn, made a challenging ARPU cost net market metrics engagement significant ARPU across customer increase favorably adds per Pay-TV continue key our results variable initiatives Despite focusing product cost and AI-enabled to marketing and advertising savings. OIBDA sub improvements, we efforts, development investment. business, creative and efforts QX solid continue significant innovation, businesses, in substantial cost These by AI/ML drove focused year-over-year per and on versus data-driven growth initiatives experience our customer XXXX. Throughout increases drove the yield optimization

we improved quarter approximately the TV subscribers, finished churn X.X XX with by the marketing activation QX On QX side, also increased lower points XXXX. SAC specifically, than efficiency. year-over-year, driven with million DISH basis per substantially

and launched a fourth we quarter, offer retention with how last mentioned Netflix acquisition are to pilot performing and very quarter. in the plan bundle bundle it's our Netflix As pleased

XXXX. since subscribers, XXX,XXX TV side, have we over now our grew Sling last in highest the QX quarter than mark and more million On and X.X

in return proprietary driven subscribers. We're effectively marketing been due Service Best to deploying publications, have Live models very AI an recently high-quality on have We investment retain increase and a SAC Streaming optimize X U.S. named target, reduction in proud that to from TV offers and year-over-year

News live Conviva. resulted of extending focus and differentiated lead growth in continual viewership on the quality, TV due part as to our World quality, Tom's additional as and months which according This straight Report to features, of and is our in streaming Guide. rollout well in product XX

Services who turn now. in be Jeff QX finish will it strong will focus momentum a to to positive key the like this for Broadband to Our and metrics our cover in continue Boggs, Satellite operational to year. I'd over

Jeffrey Boggs

Thank Gary. you,

and Broadband Satellite enterprise Services and markets. government segment Our consumer, the in operates

simultaneously satellite. our high-speed, plans with customers, Our on while to customers. We offering HughesNet continues our upgrade focus existing plans subscribers. providing subscribers closed JUPITER on to consumer service unlimited X the XXX,XXX to high-value quarter brand add We approximately new data business affordable,

the our as the end is remains business. flat business headwinds, customer performance electronically manufactured very on focus Despite With customers Managed previous saw quarter, has based antenna technology. during our our churn for these our customers market, we steerable quarters additional in which acquiring the XX,XXX over shipped we on grow and terminals LEO of demand from unique be the high-value to retaining quarter. for user now third positive, the Feedback panel, the enterprise increasing our HughesNet. In Hughes and continues as impacted ACP, disconnects Hughes

second in ability Gartner our which the testament to row, the a Hughes For leader to a deliver in for secure the as recognized year services. is network Quadrant cutting-edge network managed was services, Magic

Breakthrough. CyberSecurity award Year the Security a Solutions. -- Network Additionally, Service Security Hughes leader providing as was Managed named the and sizes Hughes XXXX in with recognized all businesses The of of Provider Managed by business the

ESA begun Our for FAA successfully in-flight grow. continues qualifications. HDX to and working Galileo their connectivity business Business Aviation where our also completed the antenna with passed Gogo service, and in We've flights entertainment test use

with awards These Spiral Hawaii. DoD both as in our opportunity. EchoStar provide participate Open This put us for Bliss, Army at a such to is network. U.S. solutions U.S. of presence base continue which provider access the comes The of X radio offered, $X.X the of service from successes and is good award aimed us market in global announced XG on government's grow assets positioned previously S-band products unique naval a and control at Fort XX-year real-time global with their recent puts top Whidbey portfolio in program, award as the initiative a impact. satellite the Navy solutions a the direct-to-device. networking We Station XG with to RAN mobile near position develop Island of advantages to a in our at the a exploring the uniquely Air a and billion position Naval in to Texas,

our it this technology business. to We with this work Hamid our turn it and are back and to have updated will We I at our for keeping on tested you satellites Retail forward America an successfully Europe. space. With over in progress on that, look already Wireless on North update hard

Hamid Akhavan

Jeff. you, Thank

Regarding we operational QX. Retail enhancements to our Wireless, in in continue progress

We are spot. in a better

how runway are allocation to growth and anchor funded, capital in our drive now obligations have the the on our efforts to to We additional can to FCC, retail business. support and

adjusting regulatory our positive plan are and We to the financial recent due developments.

website last and our brand postpaid business July. offerings. the prepaid and on consumers few across refreshed in call, and we to changes app, mentioned unified and flexible Boost we I earnings simple our provide significant experience the With As Mobile made a

our we quarter, expanded portfolio. third the During

example, phones. free offer, when service unique they we an compatible year As XG introduced providing consumers purchase a select X Boost of network Mobile

We own on where position are are more sales network. than in of our device we activating now all-new our a XX%

wireless efforts with relationship net the during Mobile subs, X of and the our and subscribers. quarter quarter. retail contribute to the impact acquiring excluding Mobile the subscribers Apple X.XX business. We first can million Apple.com consecutive purchase Store have activate Boost our expanded Apple through also stores, These ACP quarters positive service App. with helped now Customers business We since Apple finished of the Boost --

approximately quarter. ACP the added subscribers excluding mentioned, net the As loss in we third XX,XXX of subscribers,

In addition Mobile, valuable Boost like to operational accounts AutoPay, add-on processes, partnerships, more participating of enrollment increasing plans Boost Mobile drive across on Protect and the our improvements customers further in even messaging, simplified with upgrade in migrating loyalty network. number in to Boost improvements growing brand efficiencies streamlining the services to and

We improved on as a churn year-over-year quarter from improvements the customers we ARPU on continue quality higher seen basis. XX% to as in optimization. a experience customer improved QX year-over-year have in network focus as well and and third

are We state as profitably our current economics owners' increase share plans we are our benefit the encouraged to from market the network. in with adjusting by business and of XXXX our

year. results deliver do, to the the we pointed While direction of of in are improved expect to there's right plenty end the and continue to through work

network call progress. Let me the hand cover John to now our deployment to

John Swieringa

Thanks, Hamid.

mentioned empowering took a framework focus by benefit the making the where approving XG of choosing with year. provider. build-out us XG in greater step it more XG on achieved devices populated XG to committed live, promote resources for the additional when Hamid is with in XXX access U.S. will to plans the offering certain X-year wireless extension the the competitive and Americans and more end nationwide, to XX network increase our the Mobile provides wireless to our in Mobile provide the from enables and we network at of for and broadband we an the build million it covered Boost to voice, Boost Americans a since new population and XG a our way choice expand to retail for the areas. Today, covers than network. wireless the million FCC we last Boost as with by updated FCC spectrum Boost broadband network us American start business That's framework this us highly comes the over commitments. We're more of framework, more XX% have paves our September, XXX Mobile than competition network and framework the efficiently enabling flexibility in Plus, low-cost a by to markets to an updated Mobile Americans presence. Americans licenses, network to continue million significant competition As consumers call, optimize and market updated consumers commitments. The

coming expand our X over and $XXX our to In $XXX increasing QX, XXXX. additional of coverage markets compared as Seattle fact, footprint year. In network live weeks to end we the Boston, Americans of million are our million Pittsburgh will QX invested XXX XG to voice, by in go banner we to the set voice million in deployment in with the XG

network XG to to offering coverage, We totaling partnerships, from of continue pure the on our our and XX% our approach be received have to Mobile transition U.S. as customers through extended disciplined deploying optimizing we and In Boost building running network. regard with the coverage customers, and network they on-net wireless

customers to In outperforming the network increasing, many is on traffic competitors. observing competitive onboard already markets, performance our network. And additional metrics. We we our with Mobile Boost continue are network

I'll Hamid. Now it back turn over to

Hamid Akhavan

we potential Thank can our secured the value well true according debt in to us In financing, year we EchoStar 'XX. business. you, now year With continue discipline structure November the capital now John. have our is finish all to operational additional needs, addressing into the realize will well The to payment plan. positioned serve of exhibited

please the continue on the analyst made it in we'll business, year. With have give significant positive community. today. lines the Operator, to open Q&A and progress of up that, instructions from coming various build the for on we'll We our momentum

Operator

our of is Raymond James. Instructions] the today question with Prentiss from first [Operator And Rick line

Ric Prentiss

of Couple questions.

to it First, or looks in obviously, much the over, is there was ACP ACP, come how any help like you ACP in understand, us Hughes? it's but beyond? XQ can And more impact

Hamid Akhavan

Rick, you... thanks if Paul, the for question.

Paul Orban

to it want of you that? our do left ACP majority Hughes, of as of vast very on impact in take the in churn relates as to There's to related X/XX. subscriber base subscribers Jeff, QX. those the The Yes. little hit And

Jeffrey Boggs

Sure. most in -- the I of churn mean, ACP related our QX. of happened

that additional most that. did think our QX. so and churn in impact -- our We churn we're of through And subscribers most net

better should forward. a So we see path

Ric Prentiss

strategy and do PIPE start obviously, bank subs. money the the what and Wireless the And to grow in Retail the Okay. kind business? of doing spectrum with profitable wireless try or the you're to -- done, done of growth you've kind of us scale targets understand securitization of the go-to-market some what got going Help

Hamid Akhavan

reasons, you here us using not and a very network obviously get think something a the of today including that efficient, offerings that's we Rick, for we infrastructure that But having imagine that modern other cannot legacy competitive specifics systems can agility variety into match. and carriers dynamics. most can So gives

for cloud. optimized on are We AI. We run

are and security same Chinese States suppliers us the the across other using is which greatest that world suppliers, the frees level pushing We suppliers, cannot from software-based, and we other standard, based United security. and have on of provide

we to So forward. that accelerating profitability free course, value. but ultimate of on bunch push said now sight to and clearly in we here a our a profitability value we pushing, Having has that, of a the have focused the Until we're agenda lot be sustainable discipline, not better. hand we've but not sight have all creation it's now, never business, and on going also of losing been a had advantages of think --

we in that It's to marketplace. other a this good of early and have but have demonstrated not amount technical recently, having news -- So after all days we this the gotten significant do one. come technological advantages more yet on us for

Ric Prentiss

the to just that get keep pretty the profitability. on profitability improve to people on-net, focused focal on the side both them but one of the subs? is trying trying device on-net also on growing points to assume I Is

Hamid Akhavan

mentioned by that That XX% than on-net. of biggest are devices far would the being now be And as I more they're activated opportunity. earlier, activated,

that that at of beginning the beginning the the have were compatible remember almost didn't our any year, year, devices any didn't have -- So of with network. devices we we really

almost we we're they're devices, the very, XX devices network. and with our portfolio today, XX a was compatible very of limited. portfolio of iPhone and Android all that large having Our including Today, have all

So the supply base has expanded.

that of take So a for task us much that becomes reasonable more advantage economics. owner to

Ric Prentiss

DISH have transactions network Good the of to the those side done. and EchoStar

Operator

Our Walter LightShed. line question of Piecyk is the next with from

Walter Piecyk

question, is debt on guess, I first the My just exchange.

these So to in assuming continue dig their that people going to are heels.

Let's just equity know assume it don't but got the portion. this, the fund how continue the -- you the flow to all continue reasonable the cash hasn't in billion, happened. for from DBS assume that marketing sake you build-out business? I wireless can you've But argument, I to free of Is know now, the this money expect it is $X to to use deal the of

Hamid Akhavan

say want all, close if our successfully, First business. exchange of I to the we'll not operate continue that to does

business have say of or we business. us, cash prepared operate business not not, have DISH this do that continue -- for to path but a had. closes just want flows always institution, to speak it That's has to, as I'm that to related I -- transaction that forward. the whether we that business we something won't to been we a this the and get into Our of primary And specific I

sheet. to develop can from developments have Now with regardless happen the the that us at We balance business sources put of other on the certainly available that DBS. cash we

that specifics in going of Now that of parent creation, our entity nuances I comment between it of and business and course not to on today. of the the are change cash won't various terms value something is the

Walter Piecyk

administration. wireless Obviously, it. then Got changed the on the business. just you And

saying on I think tape he and thinks today merge Malone can Comcast -- was with Charter. somewhere the

-- the footprint you a future network cable obviously, fixed a in strategic Verizon would which I deal you'd there. When your being and relative about assets they can great own that bundling in think -- the network asset would as potentially again, like you if So of second especially doesn't utilizing what they have would to capacity network a to has a that operator your of I out have of beyond source guess larger today, expand the do to all, Charter. interest today, first Comcast a provides

them think So significant I'm not the future? some wholesale strategic and curious like, rare your value maintaining a for add then you customer willingness perhaps just do about how to versus adding

Hamid Akhavan

and view. Look, have largest the world very Great -- we tremendous most for of fortunate have the ourselves answer, not IT surface large his a networks -- and a in sort I'll in John have world the spending to have from give technologically in spot happen of color we very I'll the -- we start the pass to technological position -- to have and questions. is just this solid share the in you justified. And a capture where certainly find spectrum in largest on bit economy and the to the is the we of country specific we a more advanced advantage we and yet. market, scratched point even

want to more many prepared advantage opportunity specifics in way, or that. it capacity network? if on underutilized to IT side, our any the looking ways, from that of forward your whether of technological with we of We're you tremendous retail opportunities any And comment to be side. advantages. John, wholesale or are all So perspective network the comes take

John Swieringa

is Thanks John. question. for Walt, this the

right? back our Wi-Fi essentially that's initiatives. additional the making market. a network. have building And indoor those voice and customers And had there. Going ours. there's network, the pretty significant We've to trials successful that seen network product coverage, the some Boost we've we're among major roaming sure macro about out XGSA years, of when compelling complementary we wholesale in the numerous to are ready think -- to wholesale upside there busy a to potential a because available as XG make a network, capacity markets always out for things, opportunity on around network. We've talked with, we've highly Even on our capabilities built as many accesses Mobile major been wholesale and the types we we've that we've discussed bring business it our you other sure coverage there's to Obviously, combined support that assets think about XG

obviously, fully we continues having So markets how can we our develop. market that is of And we which develop, to see for traffic, the sure that to participate. be a and as is we'll significant in think be, to to in the the discussions need network good have ready discussions a place sort we'll make growth

Walter Piecyk

That sounds to me like speak. them to you're more interested in to extracting strategic cow, value basically just so through the partnership as making opposed buy

Hamid Akhavan

how have we we chartered have. But be options Look, exactly are those certainly a table how perspective vastly evaluated. not forward. that course, we would or all from much of We definitive we options the undervalued going are assets on know any

at is is that retail for a angles. Clearly, dollars number is of not a take look of develop a that just tens think through inspection of in here our it value angle can you share be paramount. us yet billions one If reflected we in price, will we

We continue Customers they business. today. the experience to operate quality with the are delighted

churn indicates Our that.

market. But modernized for business increase having our competitor John capacity IT agility. it so that even in going that continue without a it's to us as ready excess and good for much in for having to ARPU are ready and Our pushed retail mentioned, AI, be indicates grow will systems and this

that You partnership of become opportunities number can a imagine real.

value are business the model in the we we wholesale in retail early sights aware works and -- will we don't something And and on I full our want I can where on make for be other we to any want on our I'm anyone business, boost not come that to evolve to maximize us in price. can time tell take this this expectation how -- just opportunities we rapidly today. models one. it. consumer market, play we're just see is the building of it business to that for It's on can't equity that, to of just in -- But what had playing comment a share something the addition manage happen. But in markets. More -- partnership have is the very and how Now cognizant our would partnership certainly set to on structured that. record that days. I them are equity

Operator

from with Our next Chaplin New Research. are Jonathan of Street the questions line

Jonathan Chaplin

So X related questions.

years wondering with that we private can portfolio and to of be that on business? And the the give progressing an piece in business see years, beginning Hamid, it the of of call, billion your you us next justify $XX contracts, the needs value unrealized spectrum price First, will at at wins I'm build wondering you -- your X to network long would then if I'm of to markers update, a you side business, can successful a you whether goal this if if the to to of portfolio. building for spectrum need trajectory you're a Like that like capture need the what you know $XX on objective on point by end that the it's how can in achieve for sense the in cost? going enterprise you value where be year, a value. be billion, wholesale give a business enterprise to revenues value? and out some of what before us that recognizes to there's primary contract give tremendous say, do of be shifting mentioned worth. the building value. At that to things you the is wholesale to are that how wondering business Is a value business? And sort give of figure said then X the build you of business us it how this a trying go progressing of you We can potentially

Hamid Akhavan

that these X sure lead answer think a or reiterate make so it in X took but will comprehensive strategic I are parts. I or take please I X piece missed path them, Right, any great notes several forward, to I'll I them. but of questions. I questions here, and if

not necessarily it's about is just a when term other think the broad for growing wholesale, we one consumer. than in I angle. Wholesale talk everything business

is that different directions. So X

just So one. it's not

have that This military think is stick Now private of third it's another lot angles. we fourth a for That's one our I of hockey And base networks announced type may from to an that the to a we had. only XG be one that future heck a just come got angle have those It's that there's more gotten. adds believe up. We And we that. picking it. of -- actually in list.

a the one spectrum. Remember is, capabilities as being of angle We that. we that way, leader. we manufacturing for were are to that which of rated to from using the with that a our together. other we Just Hughes, even provide competitors can just beyond alone can business have managed we Gartner of simply by technology, multifaceted bunch with because our things bring have providing close with which services, Satellite, a None

that developing. is So

immediate However, type usually I say cycles other time that's take just to And a want of on it of more should thing. picking take bit wholesale government But future. Having budget up, expect pick there's they little develop that cases once make Those up, a of stick I longer in term. that, things a sale. ramp. for and as hockey fronts. it number put are a business, wouldn't very you stick they hockey that even business businesses a to said businesses

market of go may very solutions are the that network. who Just providers with application want maybe were accessing host have just don't the in to market large providers be to in access are mobile operators examples to large, other very solution that technology. that -- -- there There others

tempering the is wholesale of of like a and -- steps caution that that your a but Aero backlog in your all of windows of businesses long has revenues timing, don't me dollars' showing how There sudden are that. I business nature sudden, to not some would big big those takes to potential Aero millions well and and of businesses. very a of a you bid about our want We access thing business will one first The category happen in that and be up. enterprise positioned and So just how and up. of on the expectation big window, for worth secure we time. I'm of to expectation We work grows the that bookings for -- how development XG, time a us, of may that are all Same and the in the think temper consistently. all wholesale. I I business. hundreds start exuberance did following

to bit about little a about -- valuation. shift Now a number $XX mentioned want your second billion you I

enterprise just face think say, billion I'll And let's let's it worth $XX of $XX today. you billion take about If about valuation, value value. take at

we it books. And about, leaves call -- million shares value $XX shares. just on have billion or million it be value XXX our of think fair us XXX, capture. market if uncaptured enterprise that call That it, worth but you XXX worth more dilution full Let's have billion even roughly XXX, asset $XX than of we let's will call

is additional not price $XX share catch value of unrealized speaks assets. we cap, fair value worth to our shares. were market that $XXX spectrum our current billion of So up reflected if market with to in -- XX million just That assets, XXX

network we assets. have Now

We assets. have other

not to has network one is including that. Wholesale of years asset taken to underappreciated. angle the and there, It billions $XX realize value, of already dollars is instance, just those, worth even job value, I on think value For that. doing is of our vastly that billion-plus vastly, an underpriced, build it taking

they I have we angles spaces, time satellite to working develop. as just to those We few will other on, expectation direct that and your set we're a take others. enter

We be are materialize, will the But they fully fully function when focused significant. improvements on any step opportunity.

Jonathan Chaplin

And Hamid, follow-up there... just a

Hamid Akhavan

Yes, ahead. go ahead. Please go

Jonathan Chaplin

say, was but take take long end land. -- near real long-life that a so starting time contracts the But by to when just we'll that with of stick cycle, to not big just 'XX, recognize the a I going shape? see follow-up. or term, hockey evidence end of do I of sort these to to 'XX think Yes, are you of

Hamid Akhavan

Yes, I is very us. a important should hope window so. I 'XX-'XX mean for

are better of ever AI the cloud will AWS, running which right are I based. connectivity to and think and now on with all core, conditions real-time uniquely and tremendously drive advancement market we software positioned traffic a

a very in industry, a position. find think window window important me, to we 'XX-'XX this and very going I for ourselves fortunate the be development to is,

to be able as our fund and happens, to secured -- So that during just we runway enough it developments have window.

So all aligned. the stars

Operator

with the Citibank. line Our Michael Rollins of is next question from

Michael Rollins

lot look quarterly lose the these go-forward significantly XG of versus be the recognizing guess spectrum could had a if the can segment? about that is, what's you think is a business segment, just that really amount but that's the And paying Can you the you XG related, just how there leases of the subs. causing may being retail be to revenue curious, specific I'm question coming capacity that Retail basis? -- Wireless you're even basis? that is have revenue what's business? Since in into Retail to Wireless base where at on unpack you So that pricing forward, enhanced? And unpack retail mechanism EBITDA path And a business transfer the profitability for this a you contributed on from from on separate current I

Hamid Akhavan

Paul. I will to pass back

Paul Orban

EBITDA first all, of Wireless, subsidy. the sequential about that got that on were take Retail you to consideration in or So OIBDA into you talking

In incur that there. fact, that. variances of that the drives and cost the we majority see the And on you that

and been prior you And subs on the that driving variance. From costs what will we As are is of that's question us. has relates see Because the you XG is, number about more that that for then to are declining, standpoint the the does offsetting a that as revenue MNO MNO. revenue on the had we it load MNO. a charges what talk lease the for revenue, intercompany that was that stop that include describing your MNO. amount operations periods don't we're grow that exactly that good funding third-party thing a But over correct in but on paying subscribers essentially that, doing MVNO we time for

Michael Rollins

more maybe broadly. just And

medium the right now then retail think So for that as and right What that or business. on parties, of potentially more like to to paying side, resale recognizing retail be progression you'll that as of that about that longer-term intercompany what's Like traffic bunch margin you that? be is XG third costs margins? target you you're eventually, a paying

Paul Orban

obviously, From increase. margins should Yes. --

As level will depreciated a because you'll right on margins the of going the amortized be to an fixed we MNO, are costs that subscribers scale we increase and see those obviously and get versus lot costs be your of operating cost.

So you improve. see that should over time,

Hamid Akhavan

we market. at access a have the in amount recently. the look, ability to mean, recently of for terms us as not field, the us, playing giving mean, as FCC funding I tremendous for market of which the and today have participate had moment, -- the better good consumers, our I just news we improves in and to

share previous elements basis. that Again, is goes We And on using is a our all are on, a want that that information of that. and all questions. earlier that changes market. minutely we're a you very just model. But on to I time refreshed. we this also, now all of obviously anticipate did mentioned, earlier the as not And revised dynamic as -- and situation with of of I model on all into doing and digesting information models based and comments improves This a

the say improve. for happy will margins Just that to now, we're

what please work that. year. can But with some you as I to time give us share next think level, and time expect to on goes exactly on You

Operator

with the Our from is next Chris of Quilty Analytics. question line Quilty

Christopher Quilty

the side. MSS spectrum with ViaSat-led Iridium, along of which effort didn't the got kind Globalstar of pool MSSA, and all guess, the I've switching Hamid, EchoStar, operators. I over question, a to is to join the the satellite

X us of know when One, when give effort Qualcomm And a at your strategy your can your questions Given chip, of towards the and had of MSSA a hot failed you. view approach? go-to-market look you tie-in. direct-to-device to it? take sort chipset device get your So sort service your is, number X we you they -- on for adopt to chipset what proprietary sort is Iridium, fact manufacturers that

Hamid Akhavan

Sure.

consortium. having MSA. actually, join have reason necessarily with -- need we related candidly, necessarily access to -- partner don't of part, without we to being spectrum to First we not Look, resources that we that we our did adequate the to own -- don't anybody. And

convoluted that's of more I partnership. It's of spectrum group. larger availability a think a a bit

rights have position do we unique terrestrially that available United have MSSA and to the -- again, spectrum globally and States. happen the have think in also for here, access I we space that the to spectrum same

we best isn't there S-band us, have having around position rights incentive or to alliance. in as really on the uniquely need a So participate the world. really a for And that

accessible the also and other advantage And the we think primarily make And compelling. and to us I take are only. movements. which the bands unused to utilized our is work at spectrum we whereas optimizations fast sure and hard world, are We of around rights have, require

that from good Now a so very perspective, in shape. -- are we

say of Now in availability, we are device terms I our that focused XG. would on

standard XG, XX and or XX focused Release are We a on beyond. Release

we develop standardization. the XGPP So manufacturers it everything the we business of the volume to much economics fact, from because specs. in way I just build on think the be stay that of mobile is will so the benefiting for makes And regular within only chipset logical main based path easier. And the

without time value. position we can we those need to alliance. of think will a And are that the any to realize that we other having participate both in hopefully, So in address show

Christopher Quilty

were a spectrums just point. on to chipsets. of challenge MSS the I to not is So cellular the that's MSS traditionally, that spectrum the level. clarify -- designed get bands design at always were into maybe And sort mean, in hardware and not been

you spectrum, you're if how So in? the designed MSS those bands using do get

Hamid Akhavan

Right.

much delay be add software that more technologies, front So not complicated of of access band, -- that's and the look, it is usually, the device, in does doppler perspective. is as things a usually much standardization, chipset or on -- use and the technology developing that And base one from and address those as other to there. few you and It's more -- can code making the things. the always are complex in the front of having not end that that the that that aspect to we a can and most filters to terms radio -- of follow deleted. add goes the understanding to filtering reality and is end, be XGPP I'll way into that thing. That work X the What been is of standardization, best there's complicated. has to to -- the which the X the direct-to-device my is have how aspects There's give There's aspects that of best it. satellite

unconnected chipset from think This will we the of this market becomes when think the drive path just world so I volume being I the that. And being there's available manufacturers today. staying be are a It the X can the large plus the chipset imagined, -- So the manufacturers and aspiration And be is -- think the market. very to -- are or the going at connected shortest chipset that think, realize doing a that economics the think realizing in potentially. And I will sky. eliminates everyone work to billion and it concept that on to be not should just of large development. that I

the think economics I the everyone. to probably we within best standards, So that's and drive stay the way for

Unknown Executive

the additional question queue. Operator, there's one in

to question. move let's the So final

Operator

That with will be coming BNP Paribas. Sam from line McHugh the of

Samuel McHugh

I just to Retail back Wireless the go side. on wanted

this XX smaller, billion years. about payment deal. over business signing than Network quite maybe bit is the Service minimum of AT&T, under Then you the we $X a time anticipated Agreement with I at wireless the think that talked

the at you I'm follow be fall, of me? catch-up Is you see how see payment we there AT&T? on trying as bit what too understand should quickly and those payments for payment kind we don't the phasing kind a And helpful. Or timing deal So a them? of -- payments that, hit a you are would that of is, minimum to to if just I'm is roaming understand customers of if just trying there transition peak to

Hamid Akhavan

question? John, like that to would take if you

John Swieringa

Sam, John Thanks here. Yes. question. the for

with in a actually unique and direction, we AT&T, with T-Mobile was rely shaped track before, minimum network are discussed both in on And We're productive. as AT&T's our have healthy capability a agreements. really there. and network for T-Mobile's our we're bit well on track as capacity And really say little we provide other on both the we've I'd as So relationships direction. one making to subscribers. any commitments highlighted that a service has access to to go-to-market. And I towers enough have isn't that other That a with network, in strength more provide can experience. think well to as terms because where able us. customer conditions on-net want we how T-Mobile's we than we're we the of AT&T's customer connect the subscriber not in as signal network best have may to seamlessly customer

as our phrased really liability. an element it's it's The really the on you side more asset. the competitive it a think question was we way to have -- network, So spend of a race we site that But have relates we that We're our down to we're sure overall a to now making that CapEx. It's CapEx. happens not the focused on a P&L more level. mindset. And

partners these So our subscribers. unique and X with launch we're working continuing a acquire we're right that. economics and obviously, is leveraging we very agreements, focused have part to markets on both to big profitable make in sure of of the And to out market

Hamid Akhavan

can operator. you, call, Thank And close the participation. we now for everyone,

Operator

concludes Thank you. conference. today's This

your You at you this your Thank lines participation. time. for disconnect may

EchoStar (SATS) 12 Nov 242024 Q3 Earnings call transcript