DISH Network Corp. (
is skeptical on its decision to deploy a wireless network and
intends to sell the available spectrum if it fails to find a
suitable wireless partner, despite gaining the much-awaited FCC
Earlier in 2011, DISH bought two satellite-based wireless
services providers DBSD North America Inc. and TerreStar Networks
Inc. for a total consideration of nearly $3 billion. The
acquisitions are expected to give the company accessibility to 40
Mhz of satellite spectrum.
Delay in receiving FCC nod has resulted in significant loss of
market share for DISH Network as low cost video streaming
) and Hulu are continuously attracting customers. Moreover, top
telecom carriers like
Verizon Communication Inc.
) with the FiOS and U-Verse fiber optic cable service (offering
Video, voice and data) have gained huge subscribers.
In an effort to reduce its customer churn as well as to create
another revenue stream, DISH Network has proposed to set up its
own wireless network service, thereby allowing the company to
offer triple play services to its customers whether at home or
On the flip side, DISH Network's plan to set up wireless
network without any wireless partner will be an extremely
difficult task as it requires huge investment and marketing
support. Moreover, when telecom companies' battle for spectrum
crunch, 40 Mhz of spectrum will not be enough for the company to
establish strong foothold in the U.S.
In order to realize its goal of achieving solid market
traction in the wireless market, at present DISH Network is
bidding for Clearwire Corporation's 2.5 Ghz spectrum portfolio.
There are basically two factors, which are driving the company to
bid for Clearwire. Firstly, its high frequency spectrum will be
very useful to deliver huge data mainly comprised of HD videos.
Secondly, it will get cellphone towers and other infrastructural
support from Clearwire, hence saving useful time for the
Therefore, we believe that if DISH Network is successful to
acquire Clearwire it will make the company a much dominant force
in the wireless industry.
Currently, DISH Network carries a Zacks Rank #3 (Hold).
DISH NETWORK CP (DISH): Free Stock Analysis
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