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Tag: Dish Network

  • AT&T Will Spin Off DirecTV

    AT&T Will Spin Off DirecTV

    After months of exploring a potential sale of DirecTV, AT&T has decided to spin off the satellite TV service.

    AT&T bought DirecTV for $48.5 billion ($67.1 billion including debt), in 2015, but the service has since lost millions of customers. The satellite industry has experienced difficulties as a whole, threatened by the widespread adoption of streaming TV services. Even so, DirecTV’s losses have far outpaced its rival, Dish Network. As a result, AT&T has been looking to get rid of DirecTV for some time, exploring various options, including an outright sale.

    It appears the company has, instead, opted to spin off its satellite service with the help of TPG Capital. The deal is worth a mere $16.25 billion, including debt. AT&T will receive $7.8 billion in cash, including $5.8 billion from the new DirecTV and $1.8 billion from TPG. AT&T will use the cash to help pay down its debt.

    “This agreement aligns with our investment and operational focus on connectivity and content, and the strategic businesses that are key to growing our customer relationships across 5G wireless, fiber and HBO Max. And it supports our deliberate capital allocation commitment to invest in growth areas, sustain the dividend at current levels, focus on debt reduction and restructure or monetize non-core assets,” said AT&T CEO John Stankey. “As the pay-TV industry continues to evolve, forming a new entity with TPG to operate the U.S. video business separately provides the flexibility and dedicated management focus needed to continue meeting the needs of a high-quality customer base and managing the business for profitability. TPG is the right partner for this transaction and creating a new entity is the right way to structure and manage the video business for optimum value creation.”

    AT&T will own 70% of the common equity of the new company, with TPG owning the remaining 30%.

    “We certainly didn’t expect this outcome when we closed the DirecTV acquisition in 2015,” AT&T CEO John Stankey said on a conference call, according to CNBC, although he expressed his belief the deal represents the best option for AT&T shareholders.

  • Dish Network Moves Ahead With 5G, Signing Seven New Tower Deals

    Dish Network Moves Ahead With 5G, Signing Seven New Tower Deals

    Dish Network has signed seven new wireless tower deals, as it moves ahead to become the fourth largest carrier in the US.

    Dish Network has primarily been known for satellite TV service. Under current leadership, however, the company has been working to become a wireless carrier. When T-Mobile bought out Sprint, one of the government’s conditions of the merger was selling off some of their prepaid assets, which Dish bought as well as licensing spectrum to the company. Regulators were worried about the implications of the market going to three carriers, and wanted Dish to become a viable fourth option.

    Dish has been been moving full-steam-ahead as it works to build a wireless network from scratch. In its latest efforts, it has signed tower deals with Harmoni Towers, Mobilitie, Parallel Infrastructure, Phoenix Tower International (PTI), Tillman Infrastructure, Tower Ventures and Vogue Towers. This will provide Dish with access to over 4,000 towers and wireless sites, coast-to-coast, in addition to its spectrum agreements with T-Mobile.

    “Securing strong tower partners is a key component of any network expansion, and is tremendously important for DISH’s rapid roll-out of a new, nationwide 5G network,” said Dave Mayo, DISH Executive Vice President of Network Development. “Each of these new tower partners will play an important role in bringing our network to life, connecting next-generation wireless service to American consumers and enterprises.”

    “We are excited to partner with DISH and look forward to being a part of their nationwide 5G network deployment,” stated Lawrence Gleason, President, Harmoni Towers. “We believe our growing portfolio of newly constructed towers provides a unique opportunity to quickly and efficiently deliver the wireless infrastructure solutions DISH requires.”

  • AT&T Getting Serious About Selling DirecTV, Fielding Offers

    AT&T Getting Serious About Selling DirecTV, Fielding Offers

    AT&T is reportedly fielding offers to sell its DirecTV satellite service, as the service shrinks due to the rise of streaming options.

    AT&T bought DirecTV in 2015 for $66 billion, including debt. Since that time, however, the service has lost millions of subscribers — far more than rival Dish Network — and has increasingly become a lead weight around AT&T’s neck.

    According to the Wall Street Journal, AT&T is fielding bids in excess of $15 billion, including debt, a far cry from what the company paid five years ago. Among the potential buyers are Churchill Capital Corp. IV and private-equity firm TPG. The WSJ says the auction is already in the late stages, with a completed deal possible in early 2021.

    The TV industry has become one of the most hated industries in America in recent years, in terms of customer satisfaction. Many companies charge equipment rental fees, hidden fees and regularly hike prices after brief “introductory prices.”

    While satellite TV often scores higher in customer satisfaction than cable options, it has still been heavily impacted by streaming services. Hulu with Live TV, YouTube TV, fuboTV, Sling and, most recently, T-Mobile’s TVision are often seen as cheaper alternatives that give customers more options and control. When TVision was released, T-Mobile CEO Mike Sievert specifically emphasized no annual contracts, no exploding plans and half the cost of cable.

    AT&T’s divesture of DirecTV is just the latest example of this widespread digital transformation that is occurring.

  • Dish Network and Intel Partner On 5G Rollout

    Dish Network and Intel Partner On 5G Rollout

    Dish Network has selected Intel for its 5G rollout, as the satellite company works to be the fourth nationwide carrier.

    As part of T-Mobile’s purchase of Sprint, the magenta carrier sold portions of its spectrum to Dish. T-Mobile also agreed to allow Dish to piggyback off of its network for several years. The government’s goal in requiring these concessions was to help create a viable nationwide carrier to help fill the void left by the T-Mobile/Sprint merger.

    Dish has been moving full-speed-ahead in its efforts to roll out its network, enlisting Nokia to provide the necessary software and now partnering with Intel to use its 5G infrastructure technology. Dish is attempting to create the nation’s first virtualized, O-RAN (open-radio access network), 5G network. O-RAN enables carriers to use equipment and hardware from multiple vendors, marrying the various components together using a set of defined interfaces.

    “Fully virtualized, cloud-native networks, like the one DISH is building, bring the same server economics that transformed the datacenter,” said Dan Rodriguez, corporate vice president and general manager of Intel’s Network Platforms Group. “We are excited to partner with DISH to lay the foundation for a truly agile network and have already begun working with our OEM partners who have designed FlexRAN-based servers to enable a variety of new innovative use cases and services.”

    As part of the partnership, the two companies are also working together to further the O-RAN standard.

  • Dish Network Taps Nokia For 5G Network Software

    Dish Network Taps Nokia For 5G Network Software

    Dish Network has chosen Nokia for its 5G core network software as the satellite company rolls out its wireless network.

    Dish Network has been working to expand beyond its core satellite business to become a major wireless carrier. The company received a major boost due to the T-Mobile/Sprint merger. In order to assuage concerns from regulators, T-Mobile agreed to sell spectrum to Dish Network, and provide the company with several years of access to T-Mobile’s network. The goal was to create a fourth major carrier, essentially replacing the ailing Sprint post-merger.

    It appears Dish is moving full-steam-ahead in its efforts to roll out its network, and has tapped Nokia to provide the software for its standalone 5G network. The software will handle device management, subscriber data management, integration services, packet core, voice and core. Nokia’s software will also provide standalone 4G and 5G, as well as voice over WiFi access.

    “This is an important step in bringing to life DISH’s plans to deliver the first open, agile, virtualized 5G network in the U.S.,” said Marc Rouanne, DISH Chief Network Officer. “Nokia’s new release is cloud-native, standalone and ready for full automation, providing DISH the software capabilities required to deliver thousands of network slices with low latency and SLA on demand.”

    “The benefits of Nokia’s industry-leading, cloud-native standalone 5G Core products built on our proven Common Software Foundation — near-zero-touch automation capabilities, high-level operational efficiencies, scale and performance – continue to set us apart from the competition,” said Bhaskar Gorti, President of Nokia Software and Nokia Chief Digital Officer. “DISH has great ambition and we are both excited and laser-focused on helping them deliver on that.”

  • AT&T Looking to Get Rid of DirecTV

    AT&T Looking to Get Rid of DirecTV

    AT&T is said to be pursuing a sale of DirecTV as the satellite TV service has lost ground against streaming services.

    DirecTV is one of the major satellite TV services, competing with Dish Network. AT&T acquired the service in 2015, but has lost millions of subscribers since the acquisition. Even the pandemic, and an unprecedented demand for home entertainment, has not been enough to stem the tide. Instead, users have shown a decided preference for streaming services, such as Netflix, Hulu, CBS All Access, Peacock and others.

    As a result, it appears AT&T has had enough, and is looking to sell the beleaguered service. According to The Wall Street Journal, AT&T and its advisors at Goldman Sachs, are in talks with private-equity groups.

    It remains to be seen whether a deal will be reached. Whether AT&T keeps or sells DirecTV, however, perhaps it’s time to take a page from the streaming services. AT&T and DirecTV have long been accused of overcharging, baiting and switching, and otherwise taking advantage of customers. One of the reasons streaming services have been so successful is because they deliver what users want at a reasonable price. What’s more, streaming services don’t charge for bundled equipment, equipment rentals, mystery fees or any of the other things that often define service with a TV provider.

    Who knows how successful DirecTV might be if it were more like streaming services.

  • Dish Closing Boost Deal to Become Fourth Carrier

    Dish Closing Boost Deal to Become Fourth Carrier

    Dish Network is preparing to close the deal with T-Mobile to take Boost Mobile off of its hands, making it the fourth nationwide carrier.

    T-Mobile recently merged with Sprint after years of campaigning and fighting to gain regulatory approval. Even after the DOJ and FCC approved the deal, a coalition of states sued to stop it. One of the big concerns opponents had was whether consolidating to three carriers would hurt consumers.

    To address the concerns, it was agreed that T-Mobile would sell its Boost Mobile business to Dish Network. This paved the way for the merger, making T-Mobile the second largest US carrier, while helping Dish enter the market as a new fourth nationwide carrier.

    As part of the deal, Bloomberg is reporting that Dish will pay T-Mobile $1.4 billion for Boost. In return, Dish will also have access to T-Mobile’s network for seven years.

    Dish has been aggressively optimistic about its ability to compete in a market that has seen Sprint go from a major force to being bought out by its one-time rival. Only time will tell if Dish is able to make a go of it.

  • Dish Faces Concerns Whether It Can Build Network Within Budget

    Dish Faces Concerns Whether It Can Build Network Within Budget

    Analysts are concerned that Dish Network may not be able to fully establish a standalone wireless network for $10 billion.

    As part of the deal to allow T-Mobile and Sprint to merge, Dish acquired spectrum to establish itself as a fourth wireless carrier. The move was to address anti-competitive concerns if the market went from four to three major carriers. For Dish, however, that means taking the spectrum it is acquiring from Sprint and building out much of its network from scratch.

    In the Q4 earnings call, Dish Chairman Charlie Ergen defended the company’s ability to deliver the network within budget, citing a number of newer technologies that would assist.

    • One significant factor is Dish’s plan to use OpenRan technology, a standard that helps wireless operators use equipment from different vendors. This helps prevent them from getting locked into a single vendor whose equipment may be more expensive, or who may raise prices down the road.
    • Dish will also be relying heavily on automation and cloud-based software to run its new network.
    • A third, significant factor, is the lack of technical debt, the term used to describe the costs associated with maintaining legacy hardware and software, and ensuring backward compatibility. Anytime the other major networks roll out a big change, they have to keep one eye looking to the past, ensuring they don’t break something that will impact customers. In rolling out a new network, Dish has none of those concerns.

    Another factor that should also alleviate some of the pressure is the deal Dish has with T-Mobile to piggyback on its network for up to seven years while it builds out its own. Analysts and customers alike will be watching closely to see if Dish’s optimistic outlook pays off.

  • Sprint Killing Virgin Mobile, Integrating Customers With Boost Mobile

    Sprint Killing Virgin Mobile, Integrating Customers With Boost Mobile

    According to FierceWireless, Sprint is finally killing off Virgin Mobile and moving its customers to Boost Mobile.

    Virginia Mobile was founded in 2001 as a joint venture between Sprint and Sir Richard Branson’s Virgin Group, before Sprint became sole owner of the carrier in 2009. In recent years, however, Sprint has been letting the brand languish. The most recent nail in the coffin was in October when Sprint terminated Walmart’s distribution rights, the last place Virgin Mobile could still be purchased outside of its online store.

    T-Mobile and Sprint are currently in the process of trying to merge and are defending their proposed merger in court against a coalition of states trying to stop it. As one of the concessions to win FCC and DOJ approval, the two carriers agreed to divest Sprint’s prepaid services and sell them to Dish Network. This would, of course, include Boost Mobile.

    The timing of this decision is not particularly surprising. On the one hand, if T-Mobile and Sprint win their court case, consolidating prepaid customers under a single brand will no doubt make a hand-off to Dish Network that much easier. On the other other hand, if the two companies lose their case, Sprint has made it clear it would likely not have the resources to compete nationally as it has in the past. In that scenario, consolidating its brands to conserve resources makes sense.

    A spokesperson told FierceWireless via email: “We regularly examine our plans to ensure that we’re offering the best services in line with our customer needs. Beginning on the week of Feb. 2, we will be moving Virgin Mobile customer accounts to our sister brand Boost Mobile – consolidating the brands under one cohesive, efficient and effective prepaid team.”

  • Sprint’s Former CEO Goes Rogue, Says Company Can Survive Without Merger

    Sprint’s Former CEO Goes Rogue, Says Company Can Survive Without Merger

    After testimony from both T-Mobile and Sprint executives claiming the number four carrier cannot survive without the merger with T-Mobile, Sprint’s former CEO Marcelo Claure flipped the script and claimed the company could be viable on its own.

    Bloomberg is reporting that T-Mobile CEO John Legere had previously testified that Sprint’s $40 billion in debt and unfavorable position in the market meant it would be “sold for parts” without a merger. However, when Claure—currently executive chairman of Sprint; COO of Sprint’s parent company, SoftBank Group Corp.; and CEO of SoftBank Group International—took the stand, he had a different outlook.

    “Those are possibilities,” Claure responded. “I don’t necessarily agree completely.”

    Claure did go on to say that without the merger, the road ahead would be a difficult one and likely require Sprint to leave some markets.

    “Sprint two years from now would be a very different from Sprint today, because we would cease to be a national competitor.” Claure added. He also indicated the carrier would likely have to borrow additional money and raise prices.

    Similarly, current CEO Michel Combes testified that without the deal, Sprint would have to pull back from some markets, although it would still cover three quarters of the U.S. population.

    Given that opponents of the merger do not want to see the U.S. wireless market go from four national carriers to three, Claure and Combes testimony may still help the case for the merger. In effect, both executives are implying that Sprint will cease being a national carrier and join the ranks of a regional carrier should the merger fail.

    In addition, as part of the deal, T-Mobile and Sprint would sell off wireless assets to Dish Network to help it become a new fourth carrier. Dish’s CEO Charlie Ergen testified that his company would be ready to compete with the other carriers “from day one,” once the deal is finalized and it acquires the assets involved.


    Ultimately, the court may decide that the market would be better served by Dish Network acting as the fourth carrier, rather than a crippled Sprint.

  • T-Mobile May Raise Prices If the Sprint Merger Falls Through

    T-Mobile May Raise Prices If the Sprint Merger Falls Through

    Not many companies need to take measures to slow customer growth but—if the T-Mobile/Sprint merger is blocked—T-Mobile may raise prices to do just that, according to CEO John Legere.

    T-Mobile has added at least one million subscribers every quarter for the last 26 quarters. While that represents an enviable rate of growth, it has put a strain on the number three carrier’s network. The merger would give T-Mobile access to Sprint’s large spectrum portfolio, which it plans on using to help shore up its 5G network.

    With 13 states and the District of Columbia fighting to block T-Mobile’s acquisition of Sprint, the Associated Press (AP) is reporting that Legere testified yesterday about the repercussions of a failed merger. Calling it his “worst nightmare,” Legere said the company would have to raises prices in an effort to slow user growth and easy strain on the network.

    Sprint is obviously not the only option for T-Mobile to gain the needed spectrum. It previously tried merging with Dish Network, a company that also has a great deal of available spectrum. Sprint, however, offers one of the best options, as it also gives T-Mobile a larger subscriber base, giving it the ability to more directly match and compete with Verizon and AT&T.

  • Analyst Cuts Odds For a Successful Merger Between T-Mobile and Sprint

    Analyst Cuts Odds For a Successful Merger Between T-Mobile and Sprint

    As the trial to prevent the T-Mobile/Sprint merger entered its third day, at least one analyst cut the odds for a successful merger.

    A coalition of 13 states and the District of Columbia filed a lawsuit to prevent the third and fourth-place carriers from merging, despite both the FCC and DOJ signing off on the deal. In the first day of the trial, documents came to light highlighting a Sprint executive’s belief that the merger would result in higher prices for consumers—one of the main reasons the states are objecting to the merger.

    According to Barron’s, after the first couple of days of testimony, Raymond James analyst Ric Prentiss has lowered the odds of the wireless carriers winning their case from 85 percent to a mere 55 percent. One of the biggest factors is the challenge of propping up Dish Network as a viable 5G competitor. Critics of the deal have made the case that going from four major carriers to three would stifle competition and hurt the market. As a result, T-Mobile and Sprint agreed to sell assets, including Sprint’s prepaid business, to Dish Network in an effort to help it move beyond satellite TV service and become a viable wireless competitor. So far, however, that has been a more difficult sell than anticipated, leading Prentiss to issue his report.

    As Barron’s goes on to highlight, Sprint will be the big loser in the event the merger fails, as it has not demonstrated an ability to profitably continue on its own. T-Mobile, on the other hand, is leading the industry in earnings and subscriber growth, and will likely continue just fine on its own. It will, however, need to acquire additional 5G spectrum if the deal should fall through, as it was planning on using Sprint’s ample spectrum to build out the mid-range portion of its 5G network. T-Mobile activated its low-band, long-range 5G network on December 2. Meanwhile, it continues to build out its mmWave, high-speed, short-range network in multiple cities. Sprint’s spectrum would have been ideal as the mid-range bridge. If the deal is blocked, T-Mobile will need to acquire replacement spectrum to bridge the gap between its low-band and mmWave networks.

    With so much at stake, industry analysts, executives, experts and consumers are eagerly watching to see if T-Mobile and Sprint can win their case. In the meantime, we will continue to provide updates as the case develops.

  • DISH Network Moving Forward With 5G Plans

    DISH Network Moving Forward With 5G Plans

    DISH Network has announced another Request for Proposal (RFP) as it prepares to build the nation’s first standalone 5G network.

    RFPs are a standard part of the process of building out a new network and this is the third RFP DISH has requested. The Deployment Services RFP, for end-to-end deployment services vendors, is expected the week of October 28.

    “We’re building a first-of-its kind standalone 5G network and want to employ a diversity of expertise from partners large and small,” said DISH Executive Vice President of Wireless Operations, Jeff McSchooler. “We’ll build upon the existing relationships we have with deployment vendors from our NB-IoT buildout, while seeking local, regional and national vendors that can apply their strengths to increase the speed and efficiency of our 5G network deployment.”

    DISH has previously committed to building out a 5G broadband network that will reach approximately 70 percent of the U.S. population by June 2023. This latest RFP is another major step in that direction.

    “An Executive Summary of the Deployment Services RFP is available here.

    “Vendors interested in receiving the Deployment Services RFP when it is released can contact DISH Wireless at 5GservicesRFP@dish.com before Oct. 28, 2019.”

  • Dish Adds Netflix App To Its Box

    Dish Adds Netflix App To Its Box

    Dish just became the first major pay-TV provider in the U.S. to integrate Netflix. The company announced that the Netflix app is now available on its second-generation Hopper Whole-Home HD DVR box.

    Dish customers will now be able to stream Netflix content from the same hardware they use for their regular TV viewing. They’ll still have to have a separate Netflix subscription, of course.

    “Pairing Netflix with Hopper represents the consolidation of two incredible video experiences,” said Vivek Khemka, Dish senior vice president of product management. “This app integration eliminates the need to switch television inputs to access content on varying devices. It gives our customers easy access to their favorite shows and movies, on both DISH and Netflix, without ever having to leave their Hopper.”

    “As the first major pay-TV provider in the U.S. to add the Netflix app to its set-top box, DISH strengthens an already robust video entertainment experience for its customers,” said Bill Holmes, global head of business development at Netflix. “Many households subscribe to both Netflix and a traditional pay-TV service. Our vast library of TV shows and movies, combined with DISH’s lineup of live television content, gives customers easy access to a wide variety of complementary programming.”

    Dish expects to roll out the Netflix app to Joey, Super Joey and Wireless Joey clients in the coming months. It will also eventually add Netflix titles to its search functionality.

    We can probably expect further Netflix integration into the pay-TV landscape in the coming year.

    If you’re a Dish subscriber, you may want to check out this list of titles coming to Netflix in January.

    Image via YouTube

  • Dish Network Expands High-Definition Programming on Heels of Disney Deal

    Dish Network Expands High-Definition Programming on Heels of Disney Deal

    On March 18 DISH Network LLC announced that its customers would soon be able to view four popular channels – ESPNU, ESPNews, Disney East, and ABC Family – in high-definition (HD.)

    The company marketed the announcement heavily to college basketball fans by posting team-specific memes on its Twitter and Facebook accounts featuring new mascot Hopper the Kangaroo:

    “With the first round of the National Invitation Tournament on ESPNU tonight, college basketball fans will be able to see every jump shot and buzzer beater live on DISH in HD,” said Dave Shull, DISH executive vice president and chief commercial officer. “We know how much our customers value quality HD programming and we are pleased to be the leader in college sports.”

    The expanded HD programming stems from a deal DISH reached earlier this month with Walt Disney Company.

    The long-term carriage agreement settled a fee dispute between the companies that originated in 2007 and culminated with the June 2010 loss of HD on the previously mentioned four channels for DISH customers.

    It also settled the question of whether DISH would modify its controversial ad-skipping feature, Auto Hop, on its Hopper HD DVR. The company will now require its customers to wait three days after the airing of an ABC show before they can use Auto Hop. ABC is owned by Walt Disney Company and was one of several channels, along with CBS, Fox, and NBC, that featured the Auto Hop option during playback of primetime shows.

    Perhaps more importantly, the deal marks the first time that a content owner such as Disney has granted a cable or satellite television operator digital rights to sell their shows outside the traditional pay-television subscription.

    It could pave the way for DISH to offer an Internet television option separate from its satellite service.

    “Disney is saying, ‘If you want to create an Internet service that is not simply an enhancement to what (subscribers) already get … you have the rights to do that,’” said Phil Swann, president of TVPredictions.com.

    Outgoing Disney/ABC Television Group President Anne Sweeney said “this agreement [is] one of the most complex and comprehensive we’ve ever undertaken … Not only were innovative business solutions reached on complicated current issues, we also planned for the evolution of our industry.”

    Image via Wikimedia Commons

  • Sprint, Dish Continue Merger Talks With Waiver From SoftBank

    Sprint Nextel has been in negotiations with SoftBank for a $20 billion merger since last October. However, Dish Network swooped in earlier this month with a $25 billion offer for Sprint, making things much more complicated. Sprint is currently in the process of evaluating each offer, while Dish is adamant that its offer is superior to SoftBank’s.

    Today, Sprint announced that SoftBank has given the carrier a waiver that allows Sprint to continue its discussions with Dish. The waiver does away with some provisions of the merger agreement between Sprint and SoftBank. It will allow Sprint to enter non-disclosure agreements with Dish for further discussion of its merger proposal. Sprint is still not allowed to disclose non-public information to Dish, and the two companies cannot enter formal negotiations.

    Last week, Sprint released its first quarter 2013 financial results. While the carrier’s net losses dropped from the fourth quarter of 2012, the carrier’s subscriber numbers also dropped by over 500,000 postpaid subscribers. Sprint is currently in the process of shutting down its Nextel platform, which is where many of the subscriber losses originated.

  • $25 Billion Offer From Dish A 13% Premium Over SoftBank’s Sprint Offer

    As previously reported, Dish Network announced a proposal on Monday to merge with Sprint Nextel in a deal worth $25.5 billion. According to Dish, the offer is a 13% premium over the pending acquisition by SoftBank announced last year.

    In a letter to Sprint Nextel Chairman of the Board, James Hance, Jr., Dish chairman Charlie Ergen wrote, “We are offering Sprint shareholders a total consideration of $25.5 billion, consisting of $17.3 billion in cash and $8.2 billion in stock. Sprint shareholders would receive $7.00 per share, based upon DISH’s closing price on Friday, April 12, 2013. This consists of $4.76 per share in cash and 0.05953 DISH shares per Sprint share. The cash portion of our proposal represents an 18% premium over the $4.03 per share implied by the SoftBank proposal, and the equity portion represents approximately 32% ownership in the combined DISH/Sprint versus SoftBank’s proposal of a 30% interest in Sprint alone. Together this represents a 13% premium to the value of the existing SoftBank proposal.”

    “Our proposal provides a highly-compelling and unique opportunity for Sprint shareholders,” he continued. “We are offering an ownership interest in a combined company with a comprehensive product and services suite, a significantly enhanced subscriber base, considerable financial and operating scale, as well as a spectrum portfolio that would lead the industry. As a result, this merger creates sizable cost and CAPEX savings and promises extensive new revenue opportunities.”

    You can read the letter in its entirety here.

    Dish held a conference call this morning discussing the proposal.

    The boards of both Sprint Nextel and Softbank approved the $20.1 billion deal back in October, but the companies noted it was still subject to shareholder and regulatory approval. The deal was expected to close in mid-2013.

    It’s already half way through April, but today’s news gives all parties involved some major new things to consider.

  • Dish Network Proposes $25.5 Billion Sprint Nextel Merger

    Dish Network proposed a $25.5 billion merger with Sprint Nextel on Monday. Under the proposal, which has been submitted to the Sprint Nextel Board of Directors, Sprint shareholders would get $7.00 per share.

    The proposal is designed to upstage the pending $20.1 billion acquisition form Softbank, which has yet to close.

    Dish Network Chairman Charlie Ergen said, “The Dish proposal clearly presents Sprint shareholders with a superior alternative to the pending SoftBank proposal. Sprint shareholders will benefit from a higher price with more cash while also creating the opportunity to participate more meaningfully in a combined Dish/Sprint with a significantly-enhanced strategic position and substantial synergies that are not attainable through the pending SoftBank proposal.”

    “A transformative Dish/Sprint merger will create the only company that can offer customers a convenient, fully-integrated, nationwide bundle of in- and out-of-home video, broadband and voice services,” he added. “Additionally, the combined national footprints and scale will allow Dish/Sprint to bring improved broadband services to millions of homes with inferior or no access to competitive broadband services. This unique, combined company will have a leadership position in video, data and voice and the necessary broadband spectrum to provide customers with rich content everywhere, all the time.”

    According to Dish, the proposed combination will “result in synergies and growth opportunities estimated at $37 billion in net present value, including an estimated $11 billion in cost savings.”

    The company has shared Ergen’s full letter to Sprint Nextel Chairman of the Board, James Hance, Jr.:

    Dear Jim:

    On behalf of DISH Network Corporation (“DISH”), I am submitting this proposal for a merger between DISH and Sprint Nextel Corporation (“Sprint”). Our proposal provides Sprint shareholders with a superior alternative to the pending SoftBank Corporation (“SoftBank”) proposal. It provides more cash and affords your shareholders the opportunity to participate more meaningfully in a combined DISH/Sprint, which will benefit from a significantly enhanced strategic position and substantial synergies that are not attainable through the pending SoftBank proposal.

    We are offering Sprint shareholders a total consideration of $25.5 billion, consisting of $17.3 billion in cash and $8.2 billion in stock. Sprint shareholders would receive $7.00 per share, based upon DISH’s closing price on Friday, April 12, 2013. This consists of $4.76 per share in cash and 0.05953 DISH shares per Sprint share. The cash portion of our proposal represents an 18% premium over the $4.03 per share implied by the SoftBank proposal, and the equity portion represents approximately 32% ownership in the combined DISH/Sprint versus SoftBank’s proposal of a 30% interest in Sprint alone. Together this represents a 13% premium to the value of the existing SoftBank proposal.

    Our proposal provides a highly-compelling and unique opportunity for Sprint shareholders. We are offering an ownership interest in a combined company with a comprehensive product and services suite, a significantly enhanced subscriber base, considerable financial and operating scale, as well as a spectrum portfolio that would lead the industry. As a result, this merger creates sizable cost and CAPEX savings and promises extensive new revenue opportunities.

    Leveraging both companies’ existing assets and expertise, we will be the only company able to offer a fully-integrated, nationwide bundle of in- and out-of-home video, broadband and voice services to meet rapidly evolving customer preferences. The new company’s assets will immediately establish national cross-platform leadership and will position the company to deliver innovative services while expanding our collective subscriber base.

    The proposed combination will result in synergies and growth opportunities estimated at $37 billion in net present value. This includes an estimated $11 billion in cost savings, representing approximately $1.8 billion in annual run-rate cost synergies by the third year after closing.

    Further, our combined national footprints and scale will allow us to efficiently develop our joint spectrum assets to provide advanced services to the millions of homes with inferior or no access to competitive broadband services.

    I am proud of the company we have built and believe we will be an excellent partner to Sprint. Like Sprint, DISH possesses a strong tradition of innovation and industry leadership. We created the third largest pay-TV provider while competing with incumbent cable monopolies and other entrenched operators. DISH has consistently led our industry in service and technology delivery with award-winning innovations like Hopper® with Sling®. Our history of value creation is outstanding. Investors in our 1995 initial public offering have enjoyed a total return of 27 times their original investment, significantly outperforming the broader markets and our peers. We also have a proven track record of responsible capital management.

    DISH has significant experience structuring and consummating strategic transactions and only needs to complete confirmatory due diligence, which we believe can be done quickly with your cooperation. We have examined your merger agreement with SoftBank and we would be prepared to execute a definitive merger agreement on substantially similar terms and conditions. Though not a condition of our proposal, we anticipate that the pending transaction with Clearwire would be completed. We are confident that we can obtain all necessary approvals within a reasonable timeframe.

    We intend to fund the $17.3 billion cash portion of the transaction using $8.2 billion of our balance sheet cash and additional debt financing. We have a proven track record in raising capital to fund strategic initiatives and have received a Highly Confident Letter from our financial advisor, Barclays, confirming our ability to raise the required financing.

    We would be pleased to discuss our plans for the combined company and we are available at any time to meet with the Sprint Board, management and advisors to answer any questions about our proposed merger. We are confident that the Sprint Board will share our view that this proposed merger offers an excellent opportunity for the equity holders of Sprint to realize a superior value for their shares that is unavailable to them under the SoftBank proposal.

    While it would have been our preference to have confidential discussions regarding this proposed merger, your existing agreement with SoftBank and the impending deadlines associated with your shareholder vote, will compel us to confirm our intentions publicly. We look forward to hearing from you.

    Very Truly Yours,

    DISH Network Corporation

    Charlie Ergen
    Chairman

  • Kaley Cuoco Under Fire For Dish Tweet

    Kaley Cuoco, one of the stars of “The Big Bang Theory”, has found herself in some hot water recently after tweeting an endorsement for Dish Network. Seems her bosses over at CBS don’t like it when one of their stars helps out a company they’re in litigation with.

    Dish Network has been locked in a battle not just with CBS, but also with ABC, FOX, and NBC over a feature included in their Hopper service which allows users to “Auto Hop” through previously-aired shows while skipping commercials. While Cuoco didn’t mention Auto Hop in her tweet, she did speak highly of the Hopper service, and the post quickly garnered the attention of thousands in a matter of hours. Once that happened, however, the tweet mysteriously disappeared.

    “Clearly, with this kind of response, consumers have a true interest in the types of innovations the DISH Hopper offers,” said Dish president Joe Clayton. “It’s a shame that CBS, despite its legacy, feels it needs to thwart this kind of consumer demand.”

    The networks, on the other hand, feel that the service poses a serious threat to their shows–many of which rely on ad support to keep afloat–and say that the Auto Hop feature should be illegal.

    Cuoco, along with her 1 million followers, is certainly a good get for Dish; they say they look for celebrities with influence who are also likable, and she certainly falls into that category.

    “We’ve reached out to several different celebrities and those with influence for sponsored tweets and so I think she’s one of many folks,” Dish spokesman John Hall said. “Our goal is to introduce our products and services to consumers. We find people that consumers are paying attention to.”

    UPDATE: CBS released a statement regarding Clayton’s comment, saying, “Once again, Joe Clayton demonstrates his dubious gift for hyperbole and hucksterism. No demands were made, but it’s clear that Dish’s culture of fabrication is alive and well.”

    kaley cuoco tweet

  • Dish Holds a Wake For TV Commercials, Launches the “Hopper” Nationwide

    Dish today announced that its “Hopper” DVR with Sling is now available for all customers in the U.S.

    While other DVRs allow TV watchers to fast-forward through annoying ads, the Hopper “autohop” feature allows Dish customers to skip entire commercial breaks with the press of a button. This doesn’t sit well with content creators, and both Fox and CBS have filed lawsuits against Dish due to the technology. CBS went so far as to prevent its website CNET from declaring the Hopper best in show at this year’s Consumer Electronics Show (CES).

    In a satiric bit of irony, Dish has also launched a TV commercial ad campaign that declares the death of TV commercials. In the first commercial, seen below, Dish says goodbye to both commercials and its “Boston Guys.”

    “These lovable characters from Boston helped put the first generation of the ‘Hawpah’ on the map and made nearly three out of four consumers aware of the Hopper,” said James Moorhead, chief marketing officer at Dish. “This campaign takes the Boston family out of the house to show the world that only Hopper with Sling can provide a truly unique entertainment experience.”

  • Dish Channel Guide App For iPad Released

    Dish Network today introduced a new app for iPad that allows subscribers to search through the Dish channel line-up and share their TV viewing habits across social networks.

    The Dish Explorer app will be available today in the Apple App Store. For use with the Dish “Hopper” DVR, the app includes remote-control features that allow subscribers to navigate the channel guide, search for programs, and manage their DVR programming.

    “Customers are already using tablets while watching TV but, until Explorer, it had been two separate experiences,” said Vivek Khemka, vice president of Product Management at DISH. “What we’ve done is develop an integrated, seamless experience between the tablet and the television; only the Hopper creates an entirely new viewing dynamic.”

    The app also recommends shows by “cross-referencing social media television viewing trends” and taking viewer data from Dish DVRs. Links in the app will allow users to comment and share their thoughts about TV shows through Twitter and Facebook.

    In its announcement, Dish highlighted its ability to use metrics to track trending shows and events. In particular, the company’s “Thuuz” ratings will supposedly find sports games that are exciting and recommend them in the Explorer app.

    “The Thuuz ratings on Explorer means sports fans can quickly see the potential no-hitters, the shut-outs and the upsets forming live before the sports recap on the evening news,” said Khemka. “Seeing the big events live is always better and Explorer helps deliver that experience.”