Dish Network Corp. said it has built enough of its wireless network to meet a US deadline for coverage, claiming success in a construction sprint that’s left the satellite-TV provider short of cash as it pivots to becoming a mobile operator.
(Bloomberg) — Dish Network Corp. said it has built enough of its wireless network to meet a US deadline for coverage, claiming success in a construction sprint that’s left the satellite-TV provider short of cash as it pivots to becoming a mobile operator.
The company said in a statement that its network reaches 70% of the US population, fulfilling a demand from the Federal Communications Commission, which is pushing for a fourth nationwide wireless carrier to boost competition with AT&T Inc., Verizon Communications Inc., and T-Mobile US Inc.
After talking up plans for more than a decade to build an advanced network to deliver TV and internet access, Dish Chairman Charlie Ergen has been under pressure to get it underway, not least because satellite TV is bleeding subscribers. The company is desperate to bring in new sources of revenue to fund the expensive buildout but is struggling against skepticism among investors. Ergen last month said the debt market was effectively closed to Dish. The company is carrying $9.5 billion of distressed debt, according to data compiled by Bloomberg.
“We have made significant progress on our network buildout, and can now focus on monetizing the network through retail and enterprise growth,” said John Swieringa, president and chief operating officer of Dish Wireless, in the statement.
Dish agreed to start the new wireless service when it acquired airwaves as part of T-Mobile’s 2020 purchase of Sprint Corp. That merger reduced the number of nationwide mobile carriers to three and prompted regulators to push for a replacement for the lost competitor. Dish expects to spend about $10 billion on its nationwide network.
Earlier this month Dish launched its first subscription-based mobile offering, Boost Infinite, after months of delays. At $25 a month, the price of Boost Infinite’s unlimited plan is less than half the price of starting offers at the major carriers.
Ergen has told investors that Boost Infinite will help address the company’s dire financial situation. With a regular monthly phone plan, the Dish network will be able to start competing “a little bit stronger,” Ergen said on an earnings call last month.
–With assistance from Michael Tobin.
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