DISH Network Corp.
), the second largest satellite TV operator in the U.S., has
decided to launch a nationwide satellite-based broadband service
starting from late September or early October 2012. 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. The
newly deployed nationwide Satellite broadband will cover around 2
million people with a starting speed of 5 Mbps.
We believe from October 2012, DISH Network will offer bundled
satellite TV and Internet to its customers and become a formidable
challenger to large cable pay-TV and telecom service providers,
which also offers triple-play video, voice, and data services.
Moreover, 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.
Management is trying hard to develop DISH Network as storage for
spectrums that can be used to grow a viable pay-TV distribution
network. The newly acquired spectrums from TerreStar Networks Inc.
and DBSD North America Inc. provide most valuable assets to the
wireless industry. Using these slots of airwaves, the company can
form a formidable video-on-demand service over a wireless network
of mobile handsets, such as smartphones and tablets.
Today, cable TV and telecom operators have the technical
advantage of being able to offer the 'triple play' package of VOD
(video-on-demand), local HD, high-speed Internet access and
telephony. The satellite TV operators, on the other hand, including
DISH Network, cannot provide VOD, Internet access or telephony as
their platforms lack two-way interactivity (no uplink).
The decision of DISH Network to launch satellite Internet
service will solve this problem. Further, 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
We maintain our long-term Neutral recommendation on DISH
Network. Currently, it holds a short-term Zacks #3 Rank (Hold) on
DISH NETWORK CP (DISH): Free Stock Analysis
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