DISH Network Corp.
) - the second largest satellite TV operator in the U.S., has
announced to launch satellite-based broadband service in the rural
U.S. market starting from October, this year. DISH Network will
become the first satellite TV provider in the U.S. to provide
satellite net services in the rural areas as arch rival
) plans to launch similar services in 2013.
Bundled with its popular satellite TV packages, the 10GB data
plan will offer a download/upload speed of 5/1 Mbps and will charge
its customers $39.99 per month. Customers can upgrade to a higher
20GB data plan, which provides a download/upload speed of 10/1 Mbps
and costs upto $49.99. New and existing bundled customers will save
$10 per month and won't have to provide any installation charge,
while stand alone customers have to pay an upfront fee of $99.
The company will use a satellite of
) to deliver this service. DISH Network is already providing
satellite Internet service using the network of
) in certain parts of the U.S. particularly in the West Coast. Both
the existing and new services will be offered under the dishNET
brand. According to Federal Communication Commission (FCC) 14.5
million rural people doesn't have access to high speed internet.
The Englewood, Colorado-based company is trying to capture 2
million new customers with these services.
We believe, with the launch of this service DISH network will
become a formidable challenger to large cable pay-TV and telecom
service providers, which also offers triple-play video, voice, and
data services. Furthermore, the launch of this service will allow
it to diversify as the U.S. satellite market is already
Additionally, DISH Network is currently waiting for the FCC nod
to launch a nationwide high-speed wireless broadband network to
offer mobile Internet and phone services to its customers. If the
company gets the green signal from FCC to use its airwaves then the
company can offer a unique quad-play bundled service of satellite
TV; satellite Internet, mobile Internet, and mobile phone
The current Zacks Consensus Estimate for Dish Network Corp. is
pegged at 55 cents for the third quarter with a growth rate
estimate of (22.63%). For 2012 and 2013, the Zacks Consensus
Estimates stand at $2.43 and $2.50 with a growth rate of (16.08%)
and 3.21%, respectively.
Currently, DISH Network has a Zacks #3 Rank, implying a
short-term Hold rating on the stock. We are also maintaining our
long-term Neutral recommendation on the company's shares.
DISH NETWORK CP (DISH): Free Stock Analysis
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