DISH Network Stock

DISH Network Corporation, through its subsidiaries, provides pay-TV and wireless services.

Segments

The company operates through two primary business segments, Pay-TV and Wireless.

Pay-TV segment

This segment offers pay-TV services under the DISH brand and the SLING brand (collectively ‘Pay-TV’ services). The DISH branded pay-TV service consists of, among other things, Federal Communications Commission (FCC) licenses authorizing the company to use direct broadcast satellite (DBS) and Fixed Satellite Service (FSS) spectrum, the company’s owned and leased satellites, receiver systems, broadcast operations, a leased fiber optic network, in-home service and call center operations, and certain other assets utilized in the company’s operations (DISH TV).

The company also designs, develops and distributes receiver systems and provides digital broadcast operations, including satellite uplinking/downlinking, transmission and other services to third-party pay-TV providers. The SLING branded pay-TV services consist of, among other things, multichannel, live-linear and on-demand streaming over-the-top (OTT) Internet-based domestic, international and Latino video programming services (SLING TV). As of December 31, 2022, the company had 9.750 million Pay-TV subscribers in the United States, including 7.416 million DISH TV subscribers and 2.334 million SLING TV subscribers.

Business Strategy – Pay-TV

The company’s Pay-TV business strategy is to be the best provider of video services in the United States by providing products with the best technology, outstanding customer service, and great value.

Products and Services – Pay-TV

DISH TV Services

The company offers a wide selection of video services under the DISH TV brand, with access to hundreds of channels depending on the level of subscription. The company’s standard programming packages generally include programming provided by national cable networks. The company also offers programming packages that include local broadcast networks, specialty sports channels, premium movie channels and Latino and international programming. The company’s Latino and international programming packages allow subscribers to choose from over 300 channels in over 20 languages.

In addition, the company offers its DISH TV subscribers streaming access through DISH On Demand to thousands of movies and television shows via their TV or Internet-connected devices.

The company’s DISH TV subscribers also have the ability to use dishanywhere.com and its DISH Anywhere mobile applications on Internet-connected devices to view authorized content, search program listings and remotely control certain features of their DVRs. Dishanywhere.com and the company’s DISH Anywhere mobile applications provide access to thousands of movies and television shows.

SLING TV Services

The company’s SLING TV services require an Internet connection and are available on multiple streaming-capable devices, including among others, streaming media devices, TVs, tablets, computers, game consoles and phones. The company offers SLING domestic, SLING International, and SLING Latino video programming services. The company offers domestic SLING TV services as a single-stream service branded SLING Orange and a multi-stream service branded SLING Blue, which includes, among other things, the ability to stream on up to three devices simultaneously. The company also offers add-on extras, direct to consumer services, pay-per-view events and a cloud-based DVR service.

Distribution Channels – Pay-TV

The company operates in the consumer market in the United States and uses print, radio, television and Internet media, on a local and national basis to motivate potential subscribers to contact DISH TV and SLING TV, visit its websites or contact independent third party retailers. The company often offers its new DISH TV subscribers certain programming at no additional charge and/or promotional pricing during a commitment period. The company often offers its new SLING TV subscribers free trials and/or streaming-capable devices at no additional charge and/or promotional pricing.

While the company offers receiver systems and programming through direct sales channels, a meaningful percentage of its gross new DISH TV subscriber activations are generated through independent third parties, such as small retailers, direct marketing groups, local and regional consumer electronics stores, nationwide retailers, and telecommunications companies. The company offers its SLING TV services through direct sales channels and third-party marketing agreements.

Competition – Pay-TV

The company faces competition from providers of video content, many of which are providers of its programming content, that distribute content over the Internet, including services with live-linear television programming, as well as single programmer offerings and offerings of large libraries of on-demand content, including in certain cases original content. These product offerings include, but are not limited to, Netflix, Hulu, Apple+, Prime Video, YouTube TV, Disney+, ESPN+, Paramount+, HBO Max, STARZ, Peacock, Fubo, Philo and Tubi.

Wireless segment

The company’s Wireless business segment operates in two business units, Retail Wireless and 5G Network Deployment.

Retail Wireless

The company offers nationwide prepaid and postpaid retail wireless services to subscribers primarily under its Boost Mobile, Boost Infinite and Gen Mobile brands (‘Retail Wireless’ services), as well as a competitive portfolio of wireless devices. Prepaid wireless subscribers generally pay in advance for monthly access to wireless talk, text, and data services. Postpaid wireless subscribers are qualified to pay after receiving wireless talk, text, and data services.

The company is operating its Retail Wireless business unit as a mobile virtual network operator (MVNO) as the company continues to complete its 5G Network Deployment. As an MVNO, the company depends on T-Mobile and AT&T to provide it with network services under the amended master network services agreement (MNSA) and Network Services Agreement (the ‘NSA’), respectively. Under the NSA, the company expects AT&T will become its primary network services provider. As of December 31, 2022, the company had 7.983 million Wireless subscribers.

Business Strategy - Retail Wireless

The company offers nationwide prepaid and postpaid retail wireless services to subscribers primarily under its Boost Mobile, Boost Infinite and Gen Mobile brands, as well as a competitive portfolio of wireless devices. The company offers customers value by providing choice and flexibility in its Retail Wireless services. Prepaid wireless subscribers generally pay in advance for monthly access to wireless talk, text, and data services. Postpaid wireless subscribers are qualified to pay after receiving wireless talk, text, and data services.

Boost Infinite

In the fourth quarter of 2022, the company launched Boost Infinite, a postpaid wireless service, to a limited number of customers who had signed up for early registration. During the first half of 2023, the company anticipates launching its nationwide expansion of Boost Infinite.

The company is operating its Retail Wireless business unit primarily as a MVNO as the company continues to complete its 5G Network Deployment. As an MVNO, the company depends on T-Mobile and AT&T to provide it with network services under the MNSA and the NSA, respectively. Under the NSA, the company expects AT&T will become its primary network services provider.

The company’s Retail Wireless business strategy is to expand its target segments and profitably grow its subscriber base by acquiring and retaining high quality subscribers while the company completes its 5G Network Deployment. The company intends to acquire high quality subscribers by providing competitive offers, choice and outstanding customer service that better meet those subscribers’ needs and budget.

Products and Services - Retail Wireless

The company offers Wireless subscribers competitive consumer plans with no annual service contracts and monthly service plans, including high-speed data and unlimited talk and text. The company also offers a variety of value-added services, including device payment and protection plans.

Distribution Channels - Retail Wireless

The company operates in the consumer market in the United States and uses, among other things, print, radio, television and Internet media, on a local and national basis to motivate potential subscribers to contact the company, visit its websites or contact independent third party retailers.

The company has both an indirect sales channel, which includes third-party owned retail stores and big box stores, and a direct sales channel, which services customers online. Through the indirect sales channel, the company uses direct distribution partners to facilitate product delivery to the third-party retailers. The company markets and distributes its products and services indirectly through third-party owned Boost-branded stores, multi-branded stores, national retail stores (such as Target, Best Buy, and Walmart stores) and other stores (such as convenience and grocery stores).

The company has relationships with most large manufacturers of wireless devices.

Competition - Retail Wireless

The company competes with a number of national wireless carriers, including Verizon Communications, Inc. (Verizon), AT&T, Inc. (AT&T) and T-Mobile US, Inc. (T-Mobile).

Primary competitors to the company’s Retail Wireless business unit include, but are not limited to, Metro PCS (owned by T-Mobile), Cricket Wireless (owned by AT&T), Visible (owned by Verizon), Tracfone Wireless (owned by Verizon), and other MVNOs, such as Consumer Cellular, Mint Mobile and Xfinity Mobile.

5G Network Deployment

The company has invested in Wireless spectrum licenses, which includes noncontrolling investments in certain entities. The company plans to commercialize its Wireless spectrum licenses through the completion of the nation’s first cloud-native, Open Radio Access Network (O-RAN) based 5G network (its ‘5G Network Deployment’).

DISH Network Spectrum

The company has invested to acquire certain Wireless spectrum licenses. These Wireless spectrum licenses are subject to certain interim and final build-out requirements, as well as certain renewal requirements. The company plans to commercialize its Wireless spectrum licenses through the completion of the nation’s first cloud-native, Open Radio Access Network (‘O-RAN’) based 5G network (the company’s ‘5G Network Deployment’). The company has committed to deploy a facilities-based 5G broadband network capable of serving increasingly larger portions of the U.S. population at different deadlines, including 20% of the U.S. population by June 2022 and 70% of the U.S. population by June 2023. If by June 2023, the company is offering 5G broadband service to at least 50% of the U.S. population but less than 70% of the U.S. population, the 70% June 2023 deadline will be extended automatically to June 2025; however, as a result, the company may, under certain circumstances, potentially be subject to certain penalties. On June 14, 2022, the company had successfully reached its 20% population coverage requirement. The company is focused on its progression towards offering 5G broadband service to at least 70% of the U.S. population with a minimum of 15,000 5G sites. As of December 31, 2022, the company had started construction on over 15,000 5G sites, which, if completed, are capable of providing broadband coverage to over 60% of the U.S. population. Construction starts are continuing at a rate of approximately 1,000 5G sites per month.

DISH Network Noncontrolling Investments in the Northstar Entities and the SNR Entities Related to AWS-3 Wireless Spectrum Licenses

During 2015, through the company’s wholly-owned subsidiaries American AWS-3 Wireless II L.L.C. (‘American II’) and American AWS-3 Wireless III L.L.C. (‘American III’), the company initially made certain noncontrolling investments in Northstar Spectrum, LLC (‘Northstar Spectrum’), the parent company of Northstar Wireless, L.L.C. (‘Northstar Wireless,’ and collectively with Northstar Spectrum, the ‘Northstar Entities’), and in SNR Wireless HoldCo, LLC (‘SNR HoldCo’), the parent company of SNR Wireless LicenseCo, LLC (‘SNR Wireless,’ and collectively with SNR HoldCo, the ‘SNR Entities’), respectively. On October 27, 2015, the FCC granted certain AWS-3 wireless spectrum licenses (the ‘AWS-3 Licenses’) to Northstar Wireless and to SNR Wireless, respectively, which are recorded in ‘FCC authorizations’.

The AWS-3 Licenses are subject to certain interim and final build-out requirements, as well as certain renewal requirements. The Northstar Entities and/or the SNR Entities may need to raise significant additional capital in the future, which may be obtained from third party sources or from the company, so that the Northstar Entities and the SNR Entities may commercialize, build-out and integrate these AWS-3 Licenses, comply with regulations applicable to such AWS-3 Licenses, and make any potential Northstar Re-Auction Payment and SNR Re-Auction Payment for the AWS-3 licenses retained by the FCC. Depending upon the nature and scope of such commercialization, build-out and integration efforts, regulatory compliance, and potential Northstar Re-Auction Payment and SNR Re-Auction Payment, any loans, equity contributions or partnerships could vary significantly.

Government Regulations

The company’s operations, particularly its Pay-TV operations, its Wireless services business and its Wireless spectrum licenses are subject to significant government regulation and oversight, primarily by the FCC and, to a certain extent, by Congress, other federal agencies and international, foreign, state and local authorities.

The company must comply with FCC (Federal Communications Commission) rules promulgating public interest requirements for DBS providers, security functionality for video providers, technology standards, media ownership, carriage of cable programming, and net neutrality. In addition, the Copyright Act of 1976 (the ‘Copyright Act’) and the Communications Act of 1934 (the ‘Communications Act’) govern the company’s carriage of broadcast signals.

Wireless services and the company’s Wireless spectrum licenses are subject to regulation by the FCC and, depending on the jurisdiction, other federal, state and local, as well as international, governmental authorities and regulatory agencies, including, among other things, regulations governing the licensing, construction, operation, sale and interconnection arrangements of wireless telecommunications systems.

The company is subject to regulation by the International Telecommunication Union (ITU).

The United States and other jurisdictions in which the company licenses satellites are parties to the United Nations (UN) Convention on the Registration of Objects Launched into Outer Space (The UN Convention).

The FCC regulates many aspects of the company’s Wireless operations.

Research and Development

The company’s research and development costs totaled $45 million for the year ended December 31, 2022.

History

DISH Network Corporation was founded in 1980. The company was incorporated in 1995 as a corporation under the laws of the state of Nevada.