Q2 2022 DISH Network Corp Earnings Call

Good day and welcome to the Dish Network Corporation Q.

On the 22 earnings call today's conference is being recorded at this time I would like to turn the conference over to Tim Messner. Please go ahead.

Alright, Thanks, Kristina and good morning, everyone. Thanks for joining US we are joined on the call. This morning by Charlie Oregon, Our Chairman Erik Carlson, our CEO , Paul Orban, our CFO , Tom Cullen EVP of corporate development, Dave Mail EVP network development Stephens Nicols EVP of boost mobile and Johnson <unk> President.

Oh wireless before we start our safe harbors. During this call. We may make forward looking statements, which are subject to risks uncertainties and other factors that could cause our actual results to differ materially from historical results or from our forecast we assume no responsibility for updating forward looking statements for more information on factors that may affect future results. Please refer to our SEC filings.

We filed an application to potentially participate as a bidder in FCC auction one O eight because of the FCC's anti collusion rules, we're not able to discuss that auction and we won't be answering any questions on it during the call. Today, we don't have opening remarks. This morning. So we'll go straight to questions Cristina, let's start with the analysts. Thank you.

And we will now take questions from the analysts.

Analyst community.

If you would like to ask a question. Please press star one now to enter the queue.

Well take.

Like our first question.

From Phil Cusick with J P. Morgan.

Yeah.

Hey, Thanks, guys.

I Wonder if you can talk about Charlie funding requirements, you have a maturity in March and some others in 'twenty for a while and your Capex can still ramping and you're talking about that.

Can you give us a little bit of an overview as to how long.

Credit back in the first quarter from the first quarter on the T mobile contract, let's just talk about the competitive environment in.

The wireless spectrum.

I didn't hear the third question did you know we didn't get that third question could you repeat it.

Alright, well actually I think the competitive environment.

I'll take the first part and Paul will take the second part. So obviously, we've disclosed last couple of quarters that we will need to raise capital we have.

One 1 billion and a half.

Debt coming due in March of next year, So obviously thats a focus for ours and we believe that.

The markets, while they're choppy.

Are available to us today.

Obviously more expensive than we do.

Like today, we'll we'll continue to monitor that as we have over the years for the or the right.

<unk> and the right strategy for that.

On the accounting question, Paul Yes, sure good question there.

Book, the Q1 impact from the New T mobile deal into Q2. The deal was effective 122. So you see about a little over five months of that if you look at the six months run rate Thats disclosed in the Q.

I'll give you a sense of what that May look like do keep in mind, though that the Q2 numbers for the six months do you have the negative impact of the CDMA migration cost in it.

Okay.

Paul can you quantify at all for US what that number might look like going forward just to help us make it.

Sure.

Well, we don't disclose Thats, all we don't disclose that okay.

But if you look at the six months if I can on that.

Okay.

Yes.

Sure.

Yeah, what was the third question I didn't quite hear it.

I'm, sorry, I I.

Just trying to think about how you think about the competitive environment in wireless whether that's the prepaid business you've been in for a long time for the postpaid that you're evolving into.

And then any update on the handset that is supposed to be coming in October to wrap up here.

Okay. Thanks.

The competitive environment is kind of interesting.

The certainly one of our focus is the prepaid businesses is a low margin business with with higher churn.

As a financial analyst former financial and its always scratching my head a little bit of how the industry actually give somebody with that credit many times, a better deal than somebody with credit we're probably the only country in the world, where prepaid is actually to less expensive.

In postpaid.

And I think that that's a place that.

As people as inflation and people look and start thinking about raising prices, which we've seen a little bit industry. That's a place that probably could be a bit more profitable than it is and I think people will look at that.

The.

We're excited about the competitive environment is good.

Big picture as phones, a necessity in your wireless connections necessity. So it's.

After food and water.

Alter its just about next in line so it's a.

And we're the fourth biggest player there and we are the ones that had the room to grow so.

We like that part of the business now we've got many things we have to do.

To get there, but we've done a lot of them already and we actually had a really good quarter in terms of the things that we accomplished that we needed needed to on our side to get to that spot.

One of our problems as you correctly pointed out has been that we haven't had devices with our band 70.

Which is unique to dish in those devices and those.

Those devices.

John can talk in more detail about this but for purposes of this answer.

Those devices start to show up in the third quarter and in every quarter, we get we get more devices, which help us be more competitive there.

Thanks, Joe.

Well take our next question from John Hodulik with UBS.

Great. Thanks.

You guys signed a new agreement.

Agreement with T. Mo in the quarter can you just talk about that in the sort of contrast that with the existing agreement you have with AT&T and how that May change. How you guys go to market either from a network standpoint.

Pricing standpoint, and.

So that's number one and then any other color you can give us on the launch of a.

Boost incident and the strategy on the postpaid side for later this fall.

I'll let.

Steven.

Talk about the second question. The first question is first let's look at the Big picture.

We had an unhealthy relationship with T mobile for them. They are under a consent decree with the Justice Department, which doesn't work for them very well.

And so the good news I think for both companies.

Was that and we obviously had a big contribution CD meshed off which was very negative for free.

For dish to the through the end of this quarter at the end of last quarter.

A bigger negative than the market property appreciated and we certainly did our best to warn people about that and try to.

Lessen the effect of that but we were fairly unsuccessful on that.

Regulators pretty much did not take a position other than California. So that was disappointing, but we're through that now and we were able to solidify our relationship with T mobile.

People on this call know they have they they universally claimed to have the best <unk> network in the United States, but.

The reality of it is at AT&T has more coverage.

And then does T mobile so funny sort of way we have the best of both worlds to use both of our partners both of our <unk> partners.

And different ways obviously.

An arbitrage of that in different ways the contracts are.

Different set of economics in some cases.

So there are there are when a customer and we have a customer.

The first place, we're going to want to put them in our network, but.

Then depending on the customer there may be.

We have a little bit of machine learning that says, let's put this person on T mobile or AT&T, that's the right place for them.

Or perhaps as customers going to be Romanian based on roaming.

This is where we might put them.

It's a factor there's not understood by the street, obviously, we can't disclose our contracts, but strategically.

Sure.

<unk> position, there with owner economics coming in it really good coverage company with.

With a really good network that that is.

This consistent and has broad coverage and the up and coming network, which is not an up and coming network anymore, but technically.

Elite network in <unk> and <unk>.

T mobile so.

That's it.

I think we're positioned to succeed here.

With that I'll turn it over to Stephen on the Booth.

Boost internet question.

So I would say that we're not going to talk too much about what we're specifically around the proposition side today more will come out later in the year, but it is exciting I mean, it's a big focus as more aggressive expansion into postpaid for us all.

Two points I will highlight obviously some opportunity to come in fresh and do things in a slightly different way and in a more aggressive way and to its on our own platform. So unlike what we've been doing with boots were tied to a festival T mobile platform with limited capabilities.

<unk> rental rates.

Now operating on our own platform and some of the launch of our own digital central platform that allows for more aggressive nimble and flexible which translates into competitiveness as well. So boost infinite is a big focus internally.

We will be more coming out on that later in the year and then Charlie alluded to some of the the network economics that allow us to be also competitive as well.

I wanted to just highlight the economics.

Postpaid is.

It's always been a bigger value correctly.

<unk>, but youre talking about 1% churn versus 4% churn in prepaid.

Higher <unk>.

Yes.

It did.

It's materially different in terms of economics.

We haven't been able to play.

And the Red zone part of the field score touchdowns.

And prepaid youre likely to get your feel go once in a while and I think we're gonna be able to start scoring touchdowns. When it comes to the economics of that.

Got it thanks guys.

Okay.

Our next question from Doug Mitchelson with credit Suisse.

Thanks, so much.

I've got a few hopefully brief questions. So I'll just ask them one at a time I mean, it's Charlie and Dave How's the network build going and how well is the network working Charlie.

So this is going really well.

<unk> saw that we completed our 20% milestone on June 14th.

March non towards the milestone for the middle of 2023.

We are.

At about 5000 sites deployed and on air and we're on a pace of about 1000 sites a month and we will continue on that rate through the balance of the year.

And into next year.

In terms of quality I think we're pretty happy with the data experience I think we continue to have work to do on the water experience.

As does the rest of the industry, we're not unique in that respect.

I reflect back to two volt launches, it's been close to a decade ago now and it took some time to get <unk> working.

You could use it as a standalone service and even with all the carriers had a circus, which fall back in.

We don't have that but we will have a broader network that is standalone and we will operate well and that will.

<unk> will launch <unk>.

Or when we have that capability fully optimized and available and working really well for our customers.

We've got the.

No deals to support us until we get to that point, yes.

I'll just add some color to what Dave said so.

Millstone for next year is 15000 towers. So we're a third of the way there will be two thirds of the way there by the end of the year run at a cadence to.

To do that.

And.

You get a lot of economies of scale when you can actually have a cadence.

Like we do on that.

The.

We had a strategic decision does that on voice, whether we did.

Whether we put a bunch of legacy in there that we're going to live with forever.

Just go into better voice, the better voice of honor that that has been unexpected negative in the sense that that has taken longer that many people industry expected to have binary in their systems by the beginning of this year.

T mobile and dish are the farthest along T mobiles in two markets today, obviously, we're in hundreds of over 100 markets with it but it is not good enough in my opinion for the customer experience.

But you have to have in voice and so it is.

Hampering our ability to put users on our network unless there and lesser data users. So.

We're a lot more of a data centric network and while we have voice.

We have to we got these extra steps to make that work in.

It's a little bit clunky, and we're looking forward to doing that.

On the positive side real positive side, while our vendors are helping us with van or the addition of Samsung as a vendor in the quarter.

But true Oran was kind of a three for US first of all it gave us a second supplier of radio. So we werent single source to Fujitsu second is they have devices. They are large device manufacturer and so they are very attuned.

Very attuned to honor and band 70 that helps us with probably the two biggest negatives we have which is how do you get the bands and had to get the honor to work. So you've got a real technology later, that's taken some of the system integration off our shareholders. They are just better at it on those particular issues and we are along with <unk> and those guys are those companies are doing great work.

To solidify those parts of our business so that was a.

A huge positive for us probably not appreciated.

By the Street.

And on that band 70, I think at the Analyst day, there was some discussion that.

The same antenna form factor thats already in phones for adjacent bands could add beyond Saturday at no additional input costs for the phone manufacturers. So that would lead to a very broad set of handset availability for dish does that effectively.

John the right way to think about you talked about Samsung, helping you with band 70 is band 70 of that effectively be in most phones in relatively short order because it doesn't cost more to put it in.

John It's Doug it's John .

So when we talked about this a little bit on the last quarterly call.

I'd say, we're on track to get band 70.

Into the devices with a broad range of manufacturers Charlie mentioned, we start receiving devices in Q3.

We will start distributing.

The fourth quarter.

Broadly across all of our markets.

As Dave said, as we get one or tuned up and running in each market will focus.

Having been 17 devices with Bonner.

Loading onto our network.

As those markets open up.

The key is that we have.

70 <unk> important.

Hi, there was there are some band 70 devices that exist today.

We haven't quite gotten to the Bonder software certification, yet so we really need to get both of those things right and we'll be bringing those devices.

Starting with an expanded Android lineup.

Later this year.

And then the cost of that.

On the cost side.

Want to speak for the handset manufacturers, but the extent there is a cost it's I would say it's immaterial.

That's correct for all that material.

Alright. Thanks.

And lastly, I'd.

Just curious if there was working capital headwinds in the first half of this year is does that continue and is that related to the way youre running P paid or just the build out of five G. In some form and.

And then Charlie just.

Any further comments you have on financing needs and ability to finance and options to finance certainly one of the things I think the market is most worried about is a lot of maturities in next few years.

And dishes sort of sources of capital to to roll those over.

Once you take the yeah as it relates to working capital. We did have some headwinds the first half of the year, both should level out in the second half of the year. So hopefully we won't have as much of a drag but it has to do with obviously the five T bills. It's costly the timing of the payments that caused the drag that you saw in the first half of the year.

And then on the financing stuff I don't have a lot of color to add to what I said.

But I guess I may give it generally.

The markets are choppy that or not.

There is certainly not at the same level they were a year ago.

Having said that you can raise that.

There's a lot of liquidity in the marketplace. So that's <unk>.

You can raise capital with a good business plan and I think we have a great business plan. So.

And I think we have a variety of things.

That we could do.

In terms of raising capital in it.

Obviously, our board and our advisors are heavily involved in that and.

Like anything else I think it's going to I think it will be obvious where we need to go internally.

I think as we go through the different options and as the market moves around and I think thats the case, but from them.

When you look at the quarter.

We accomplished.

Probably more in the last quarter than we than we historically have ever come close to.

We made it we made a made a buildout milestone that many people didn't think we could make and in the backdrop of COVID-19 in supply chain.

It wasn't a plus I mean it just.

Few companies could have done what we did there we were able to build a strong relationship with T. Mobile that was unhealthy before now is the healthy relationship.

The CDMA.

Huge negative and got behind Us in terms of the CDMA shut off and.

Our phones were jammed with people.

About upgrades and while they lose their service in.

And our marketing money had to go to convert people and now our marketing money gets to go to new customers.

People on the phone, it's about becoming a customer not about how they could phone is going to be shut offs. It makes a big difference and then we strengthened probably our biggest weakness which was on the supply side.

And on the technology side with Samsung So.

Those are really big things.

For Us and then.

Because we know so if you look at the next half of the year. What are we focused on were really good at focusing on things in accomplishing them. So we do need to raise capital and obviously, you'll read about it when we raised capital I guess is what I'd say.

And we realize that that's an overhang and we realize that there is many out there that don't have confidence in our ability to do that so we are certainly well aware of that.

Obviously, we're going to significantly expand postpaid thats a much more profit business for us there is a lot more customers than postpaid.

There are.

Avenues in postpaid that we think we can compete in that aren't available to us in prepaid.

We have another milestone.

Dave and his team are focused on that.

We're going to make that that we're going to make that build out.

And improve the network as we go along.

And then and then we're finally in a position second.

Second half years deploy deploy our own digital marketing and billing platform.

You guys don't have visibility of this but all of that's done today by by T Mobile and we have to depart to change something we have to go through the department of Justice.

And we changed that that it takes months and months and months. If you want to change. It. If you wanted to change up our program for the consumer it takes months and you can't be competitive.

In that environment with our own platform, we can change and ours. So.

Theres, just a lot of things going on.

We still have two headwinds.

Out there other than raising capital, which I would put in that category, certainly bonner and making sure technically Varner works.

And our vendors or are helping us with that and we have made minor work. So I don't want to discount that.

But we just we're just not making it work as.

As well as LTE is.

Our current voice so we've just got to get better and obviously get bigger supply devices.

And some lower cost devices.

So.

I don't know that we exact hepatitis.

Note. The date, we're going to make all those things work, but we know we have devices in the second half of the year.

And we're confident we can make the honor works. So that's kind of where we are in.

Behind all of that is a pretty good business pretty good is a really good business plan and I think we can raise capital often.

Next question operator.

Take our next question from David Barden with Bank of America.

Hey, guys. Thanks, so much for taking the questions.

Charlie at the risk of antagonizing you with another financing question.

The March 'twenty.

Three paper has a 5% coupon if you want to refinance it five years out it's 15% coupon right now for dish.

So you've got kind of two options one is to try to take down the $23 24 to 25 and clear the decks and make sure. Your business plan is funded based on the strength of what you've executed on to date.

Or you can maybe simply kind of chip away at it hitting singles.

Im hoping that the rate market improves I was wondering if you could at least share your thinking on that and then.

I could ask a second question, which would be.

When we were at the Analyst day, we kind of held up Vegas is the flagship market could you tell us a little bit about what's happened in Vegas.

What's the retail strategy, how many subscribers how fast is the network whats the uptime, what can we look forward to as we continue to get the build.

Deployed thanks.

Okay.

So obviously.

We'll have to raise capital to be a bit more is going to be more expensive than the 5%.

No matter, what probably given today's market, having said that that's unsecured paper, it's a little bit different there is other opportunities to raise capital.

<unk>.

I wouldn't expect it.

I don't I wouldnt expected to be 15% right, obviously, it depends on the markets as to whether you're whether you're hitting singles doubles our homeruns.

<unk>.

Again, we're comp more competent as management when it comes to looking at the different financing options.

And making the right choice for this company long term.

As far as the Vegas market.

The number of subscribers that were not obviously disclosing that but most of the customers. We have not all but most of the customers or our data customers and they're not material to our business yet.

Thanks, Charlie.

Well go to our next question from Jonathan Chaplin with New Street.

Thanks.

So again at risk is antagonizing with another financing question Tony I'm wondering if you can give us a sense.

Where you're thinking of raising capital would it be.

DBS.

Or.

At networks.

And then a.

More important question with the <unk> that you got with the AT&T and T mobile that allowance in market running.

That allows for a much more capital efficient network builds.

You were initially planning.

And with some of the other benefits from the lower rates on the <unk> I.

I would imagine that helped cash flow. So is the funding gap at networks to get you through to your build out requirements $10 billion or is it something lower than that now.

Well nobody is going to be mad at us if we come in below $10 billion.

So.

I think we're we're we're looking at that.

We're looking to build that maybe this is misunderstood but were looking at the build out costs through 2025, which is our final milestone. So obviously.

When you get to more Rural America, there's cost there that you don't have for the next milestone.

I think you did a report that probably was in the.

Ballpark of.

Funding.

Then maybe not everything in there was completely accurate, but youre in the ballpark.

Give or take.

In terms of in terms of where we'd go you are correct that.

That the new deal with T mobile and other things.

Make our business from a profitability.

Perspective.

Better shaped than it otherwise was before.

And certainly end market roaming.

As.

Good growth for a variety of reasons and you have that bill to the team.

We didn't have that T mobile before so.

They're just they're just there's things around the edges.

If improve but again.

And then when it comes to funding.

We look at all the options Jonathan so.

There is there is nothing that we don't look at so we look at every business.

We have we look at structurally and we look at every kind of financing that can be out there.

And.

I mean, I guess people mccarville.

We will have confidence one way or the other right.

But.

Assuming the marketplaces doesn't get.

Get materially worse than are today.

Then.

We're going to get our network Bill.

The only guidance I gave you we gave you at.

At Analyst day, we are going to become a fortune 100 company.

And that means we're twice as big and twice as profitable as we are today.

I don't have timeline on that which that was tomorrow, but that's where we're headed.

Got it thanks Charlie.

Well go to our next question from Walter Piecyk with <unk>.

Chad.

Thanks, Charlie.

Earlier, you were talking about touchdown.

Goals in postpaid and prepaid Memphis.

I think there was a.

Jay or maybe SEC requirement.

You have basically fell from service to customers now that you're offering service on postpaid.

Do you continue to have to own boost or is this something that since it's all linked.

We don't goals.

And a division where you've got the cheap.

Putting up a lot of touchdowns can you just put that.

And just go with the postpaid business.

I guess.

That really Antagonizes me no I'm kidding.

Yes.

<unk> My question is worried about antagonizing.

Sure.

Most people most people don't even take your questions because you've already antagonize.

Right.

Mary.

That's a tough question.

Yes, I have been married for 40 years, So it's tough to antagonize me.

The.

The.

The answer is.

Anything is possible, we look at everything right and so.

And if you look at the list of options.

Owning all boost prepaid is is not a necessity.

I think theres a lot of synergies.

And owning that but.

The real value of our company is our network and all the things that are going to come on that network.

Again, we're we've said that we're in the wholesale business. So.

R R.

Capacity can be sold to others in the industry. So we're not trying to monopolize our network right and so.

I guess the answer is just not a necessity, but we believe it belongs today, we preferred that had borrowings with us.

And the division got a lot of competitive.

[laughter].

More touchdown. Please.

So at the Analyst day, I think Steven.

Rob is talking about.

I think after the whole.

Our team did talking about the powerful kind of open.

Open network network, slicing, and all that kind of stuff.

How long is the enterprise sales cycle and when do you anticipate maybe having some kind of.

Now with determined maybe flagship customers to demonstrate.

The flexibility of our network offer something unique compared to what's on the market pullback.

Steve and Bob would be the right Guy to answer that he is on a well deserved vacation.

Today, and I don't know John if you want to jump in here, but.

The bill that the sales cycle is pretty long is longer on that because you are.

You are talking to companies that are making long term pretty large commitments in some case.

And they have to see how it saves them money they have to see how it makes our product better they have to see.

They make their product safer et cetera, So we havent really two strategies, there and I think Stephen talked about one is there are there are places, where we think we probably could be the system integrator and add the greatest value and it maybe an example might be in hospitality were already delivering video to the cusp.

So we're having a relationship there.

A few others.

But theres also a lot of areas that we probably don't have as much expertise our connections and the three largest players in the enterprise business today.

Our people like Cisco and Amazon and DAU for.

For hardware and optical and Wi Fi and those in cloud and so we have an opportunity to partner with them is what I would call a subcontractor.

They already have sales forces and relationships. So there is a way for us to get in to enter businesses as they get into business.

And those and those companies want to move beyond Wi Fi into more licensed spectrum and more secure spectrum and more control of their spectrum. So the.

The sales cycles are longer than we like but the deals are big and we continue to add.

Continued increased interest in what we're doing there.

And we are a little bit.

We now are up for air a little bit after the first milestone and we're able to.

To spend more time on those deals, but theyre not.

Eminent and Theyre not in the second half of this year.

Got it and then lastly, if you can just give us any update on whether you plan on purchasing the 800 megahertz spectrum.

On Directv.

Just kind of every quarter it just feels like.

<unk> about April improve meaning that I think it's a company that can be effective at cutting cost. Therefore.

It potentially reduces some of the synergy potential just just curious.

What hold back.

You guys from proactively trying to pursue.

Hum.

Coming to some agreement to take the regulators on that.

Deal.

Yes, so on Directv I'd say the same thing, we think thats inevitable, but.

Do think you're close enough to the election today that I think regulatory is your is your biggest risk and.

<unk>.

Thank you.

Wait and see which way the wind's blowing.

Sure.

And you're going to know that next couple of months.

What was the other question I have 800 megahertz.

We haven't.

We essentially have an option to buy that so obviously, that's going to depend on how we are financially.

We like the spectrum.

We think there's a lot of good uses for the spectrum, we're building out the spectrum.

Yes.

In terms of our network so that they are in our radio it's in our radios.

We had a potential fine from the FCC, but because we believe we met our first milestone that's off the table.

There is a payment to <unk>.

T mobile.

If we werent.

To purchase it.

It's around $70 million to $72 million so.

It's not a must have for us it will depend on where we where we are but it's a nice to have for sure.

Alright, thank you.

And we will go to our next question from Ric Prentiss with Raymond James.

Thanks.

All of the questions Charlie touched on a couple of times a day.

The era too.

CDMA shutdown help us understand how much productivity was maybe loss with that effort is there that come back in or is it just dollars getting refocused actually being productive as you think about where your head now that youre through that pain.

Yes, I mean, the hard cost was over $500 million.

Indirect cost, which is probably another $1 billion.

I mean it.

Yes.

I guess.

Yeah.

The way I'd say it is we have been playing defense for two years.

And.

Every day, we come in now we get to think about offense and that's a whole different mindset.

<unk> set an it's a heck of a lot more fun to play offense and defense. So.

And when you're playing defense, maybe it'll intercept to pass, but you don't square a lot of points on defense as many of you in offence and so and then what you hope to do it.

Just like the University of Tennessee, you get to a hurry up offense many score more points.

Harry absolute as management team here.

I guess I heard them up a little bit and give them some more coffee I don't know.

Interesting area has been fixed wireless right.

People going on the offense to take share from cable operators in broadband what do you. All one do you see an opportunity for dish with fixed wireless access and what are you needing to clinical after that market.

The answer is yes, we do see a fixed fixed access on a number of fronts.

And.

The best use of our network is going to be.

The best most profitable side, it's probably enterprise versus postpaid.

Postpaid customers second.

Probably fixed wire is third in prepaid fourth alright.

Alright, and what kind of stack rank and Theyre a lot depends on how.

We're obviously watching what T mobile and Verizon are doing.

With that.

I think there are some interesting things we could we could do with fixed wireless, particularly as you get more in rural America, we have distribution so.

And obviously there is government funding there and other things that government funding goes to your competitor you don't have the right set of economics to play if there is no government funding were probably pretty competitive.

And obviously to the extent we have government funding. We are obviously really competitive so it's a bit of a unclear market.

How it shakes out, but certainly our network is capable of it in fact, our networks capable of it today and in fact, many of our customers are and if any sort of way fixed wireless.

Last one for me is I think.

Your snack is coming up on the November date, any updated things you can share with us on the dish call about whats going on with the with the <unk> company.

No I can't.

Yeah.

Hi, Bob.

In terms of the CEO there you can always call.

Okay.

Any update to give the IR team. So we can quickly to antagonize to all of us.

What's that.

Update on IR team, Susan quit being antagonized by all of us.

Sure.

Yes.

Well I think I think I think we realized that we have to be.

More communicative and responsive to the street.

Obviously, one of the ways you.

Most logical step as you've got somebody.

In charge of IR or we obviously piecemeal together, sometimes you talk sometimes you talk to people in the company or Paul or whatever but.

We also need the right person right. So.

And we have ideas in mind of what we think that looks like and we've struck out a few times and.

It's on our list is probably not our highest priority, but it's I'd rather get the build out done I'd, rather get tomorrow. Thanks, Dan, but it's on the list of things we're looking at an.

Anybody in this call that really wants to be.

What worked really hard make no money.

And talk to all you guys on a daily basis give us a call.

Make no money till we make money I should say you give me a lot of money, it's just going to make.

It's not going to be it's not a freebie leg reallocation is delayed gratification.

Hey, Josh.

Josh Shawshank redemption at this company.

Yeah.

Yeah.

Yes.

We'll take our next question from Craig Moffett with Moffett Nathanson.

Alright. Thank you so I'm not going to antagonize you with financing questions anymore. I think we've learned what we can learn so let me ask you what your network is going to look like.

Now that you have the in region roaming agreement that was talked about before.

Your one way to think about sort of meeting your network requirements as sort of a high canopy.

Of macro cell sites.

That sort of meets the coverage requirement, but.

For enterprise customers, presumably what theyre looking for is kind of higher speed and greater density.

More concentrated areas. How do you think you deploy your capital going forward is it first just check the box.

<unk> coverage and then.

And then it's sort of spending your money on small cells and density or is it at the base of the tower because.

The <unk> mobile edge compute is going to be.

Focus of your business I'm, just wondering kind of where you think about allocating capital in the network itself.

Yes, I think it's a good question so.

It's much more nuanced than that so we certainly build in our macro network.

Primarily because thats the notion of the traffic that will go through our retail customers, but where our retail customer might go I E. A tunnel that might be.

Our subway or something that would be very expensive for us to build without a lot of customers.

Beyond our build out we will continue to bill our buildout.

Milestones will continue to build that will build on the success base success based basis. So you can appreciate this is Craig in the sense that once you reach a certain amount of roaming charges. It will be more advantageous to have owner economics right and we will have we will see that long enough in advance and see the trends long enough.

Vance to build that the same hold true for your commercial customers.

The commercial customers, where they might want more density think about Ah.

<unk> campus, well, that's going to be success based for the most part you have contract Youre going to go build it out.

Because they want more density, but but many.

Many of them.

And what they what they bought what they really want is something that our competition has a tougher time with which is they want a slice of our network that they control and our architecture allows them to do it and then there are some advantages.

Based on whether we architected for edge compute.

Right.

Some advantages that we have in terms of how we do that so it's a lot more nuanced. It's a lot more detailed and we're prepared to go with that.

The street on how we're doing it but our net but the answers are networks.

For the consumer it's going to look at is going to look as good or better than anybody else, but for the other people, it's going to be better than a lot of ways. So there'll be some there'll be some disadvantages in it and we just won't market to that but as we as we deploy capital below beyond the $10 billion.

It will be success based.

So we know we're going to get a return on it we're not we're not building just to build it Dave.

I want to add something to that I think you did you got it its really I mean I think the.

Roaming deals really Craig give us an opportunity to really not built some I think about all the venues in order first conversations directly that I had was about building so far and the cost to build so far and that's just something that we won't need to do because of the because of the agreements that we have in place.

Thanks Louise.

Yes.

Ed.

Yes so.

So far is a good example, so you for example would say you are.

<unk> not going to prioritize arenas and stadiums and things like that which is more retail.

But.

What have you learned for example from.

Las Vegas, I'm talking to customers in a specific market.

There is.

Demand is indeed airports in.

For commuters and executives of a corporation or is it purely the data functions of the back office I'm, just I'm trying to get more of a sense of how you match network topology to where the market opportunity is going to be for you guys.

I think it really comes down to two.

Two.

What it cost to build versus what it costs to Rome.

In those places where you can create a customer experience that is <unk>.

<unk> when you think about a stadium you walk into the stadium and you use your phone into the stadium.

We're not there's not a lot of handover traffic in and out of the stadium Youre actually captive for a long period of time. That's a great example of where our network within a network, we could level of somebody else's network.

Provide that coverage that's probably the most profound example, I can think of because your captive.

As a customer for a very long period of time.

But the.

The customer doesn't have it.

The customer is going to get the best of T mobile or AT&T in that case, yes, sometimes T. Mobile is not an arena, but AT&T is or vice versa or both of them are in there and then we would go with the better deal.

And the customer doesn't notice that that's not a.

There is no customer, but we save capital so.

If you were to.

If you were to look at what I look at from a financial point of view you'd say Wow dish has got a set of economics.

When it comes to network build an operation based on architecture and agreements in place debt.

Can allow them to be very very competitive.

And it will be difficult for people to match our cost.

In this marketplace long term as we continue to build.

We're literally 10 months away from the next milestone so and that's a pretty big milestone so.

We look we got we got headwinds on the financing side as everybody's correctly pointed out.

Today, but we have to get through those things.

But if you're on the inside and you see this.

<unk>.

Hi.

I don't know it.

It's compelling right, but we will say we have to prove it and the way we focus the team every day is to build a great product.

And we believe if we build a great product that we will be financially successful.

That's the way we approach it and that allows us to take long term have a long term vision take long do it right. The first time think long term about it.

And as long as we get from here to there in the next year.

And then I think I think hopefully.

I believe our shareholders will be rewarded but look it's not 100% guarantee in line, but we believe that that's where we get to all right. Operator, we have time for one more from the analyst community.

We will now take our final question from the analyst community members of the media on the call. Please press star one now to enter the queue to ask a question. We will begin the media portion of this call. Following the answer to this final analyst question.

And our final analyst question comes from Michael Rollins with Citi.

Hi, Thanks for taking the question.

If I could first.

Just pivoting over to the video side of the business, while the current macro environment accelerate.

Linear and satellite cord cutting and can you give us an update on the opportunity turns swing into a much larger live streaming platform in terms of subscriptions and then.

The second topic of questions just on <unk>.

Strategic partnerships and Charlie in the past you've talked about partnerships in a variety of different ways and just curious if theres an update on the possible opportunity and timing for more strategic marketing or financial partners for the wireless strategy.

Yeah.

So Michael this is this is Eric I'll take the I'll take the first question I think that.

As we've discussed in the past both on the dish TV Sling TV business.

I mean, we really are heads down and you can see it in.

Slowing growth.

But also some of the profitability that we're focused on really still trying to acquire and retain.

Customers that meet our targets.

Our targets for long term and profitable growth there's no doubt.

Most of you have written adequately about it that there is a decline in linear video theres more competition than ever.

Folks that we've had long term relationships with on the content side or more on a remedy bucket today youre seeing us do.

<unk> TV side do unique things.

And historically that goes back quite some time like launching Netflix as an app on our service or Amazon or Youtube.

We've talked a little bit about our Android TV box will help us stem some of that from a retention perspective and help really integrate the customer experience as it relates to additional apps on the dish TV on the dish TV platform.

But the pay TV market is obviously in a bit of chaos and it's definitely a linear is declining a bit it's up to us as management to stem that decline and as you saw in our in our Q2 earnings try to monetize the existing customer base as well as we can.

Well keeping the.

The customer experience at an all time high and I think the team has done.

Although our growth targets aren't exactly where we want them to be I think the team's done a good job with their operational and financial discipline on that front.

On sling.

You talk about S body, you talk about the number of apps and opportunities whether it's.

Peacock, a discovery plus an HBO, Max and Netflix et cetera, et cetera, et cetera et cetera.

A lot of a lot of changes in consumer behavior, there youre seeing obviously the effect on Netflix the spend on content.

Obviously stagnation in some of the some of the providers and you're spot on I mean, we're not happy exactly where slowing growth is we've spent a lot of time and effort in making the customer experience a top customer experience. We now have to prove out that we can we can have value and we can earn a place.

And folks homes, we're not we're not we're not the number one subscription there, but we can be very complementary with the best of cable and and provide customers a great value experience.

For some content that they may not want to describe two from one of the <unk> folks and as you see in the market today, it's a very spiky market right.

There is very.

There is a limited barrier to entry and Theres, a very easy way to cancel and so.

One thing that we learned.

Throughout the almost 27 years that I've been here is that we have to earn customers business every day and we have to do a better job of that slate.

But.

I'd just add Darrin.

Sure.

The OTT.

OTT, but there'll be some fallout in that and some consolidation in that so they're more profitable so not everybody. In fact, most people are not so.

I think we're well positioned there.

Things that might happen.

We are smart enough not to chase customers, who aren't going to be profitable. So.

On strategic partnerships, obviously, I'm not going to talk about that in detail. The only thing I would say is that.

That.

<unk> cloud Native network is where telco is gone and perhaps 10% of the people thought that a couple of years ago, maybe 50% of the people think that today, but it will be this time next year. It will be 100% of the people that that realized what I. Just said is true and it's a.

Wonderful wonderful opportunity, particularly for our partners to grow their business in a way that they probably didn't have in your strategic plan a couple of years ago.

They are in our network they work in our network they work with our team and they can see where this goes around the world.

The biggest growth for cloud providers is going to be telcos.

Decade, right as an example.

So.

<unk>.

I think that.

We have good alignment there.

We both have a lot to gain.

With each other so.

That's the big picture, but obviously not talking about detail.

Thank you operator, we'll move to the media now.

We will now take questions from members of the media again, if you are a member of the media and would like to ask a question. Please press star one now to enter the queue to ask a question.

Our first media question comes from Mike Dano with light reading.

Yeah, hi, thanks, so much for taking my question today I wondered if you could just talk about your plans to.

Your phone plans and how you plan to sell phones, particularly.

The fall comes around and you've got this boost infinite.

Surface, that's launching for postpaid are you going to cell phones like the other carriers do where they're they're essentially free to the customer and build over two years or three years or whatever or is it going to be a bring your own device model I'm just wondering what the what the thoughts are around how youre going to cell phones.

Yes, I'll take that Mike.

So I think the answer is all the above but we're going to be a.

Comparable I think boosted that we're going to have.

Options that cover all of the gamut and we kind of segment I am not going to give too much detail on our segmentation and how we're sort of launching our go to market strategy. At this point that you and I have talked to actually offline a little bit. So you have some background.

But we're going to worry about what can be competitive in the market. So we'll be selling phones will be peeling youll be selling <unk> for those who want to bring their own device.

<unk> will sell across the gamut Android and iOS.

Got it thanks.

And we will take our next question from Scott Moritz with Bloomberg.

Okay, great. Thanks.

If I speak for everyone here, but I'm looking forward to the day when we can conduct this call off your futuristic new network instead of sold Ireland method.

My question can.

Can you give us just give us some charlie maybe some glimpse of what's ahead for.

Boost infinite in terms of maybe.

But the pricing might be or the date of the launch or maybe even the cities that you well first target.

Yes.

Steve I mean, obviously.

We're capable of being nationwide.

So although there are certain cities that we built out that would have a priority for us because we have better economics there obviously.

The.

I think the thing that maybe maybe that we focus on is obviously price is an issue for customers Thats always coverage. So there's really there's really only two things that I see customers when I talk to customers, it's price and coverage.

They don't.

Wade I'd say, it's priced one three coverage for five or six and maybe speed they get it.

<unk> or some or something else.

Maybe you can talk to on Tuesday, or maybe something else down the list but.

Yes.

There's reasons why people.

And it's not always whats marketed.

What we have to do ultimately is distinguish the user experience in a way that.

This distinguishes us from.

Other people and that's what that's what Steve and his team are focused on and we think with our network architecture and the things that we're doing we have some ability to do that and so it's no different than when we got in satellite business and we had to distinguish yourself from cable and from our competitors and it was things like interactive guides, our DVR R. R.

Keeping commercials automatically.

Our being able to get Netflix out of the same box, Eric and his team.

Change the customer experience and therefore, we gained market share and churn went down so.

That's a similar.

We don't have 120 million customers like the other guys. So we have to be scrapped beer and.

And more innovative and more entrepreneurial and that's the fun part of what we're doing and I think youll see I think youll see boost.

And boost infinite come up with creative things in the marketplace that are that debt.

Both do things that give customers things they don't know they want today.

And then improve on some of the pain points are down.

Did you want to add to that.

Two quick points.

One is the Charlie alluded to it but our network deals allow us to go nationwide.

Better pricing, we are going to come out with aggressive pricing as an appointment.

Coming out of the <unk> play.

And then two I think.

Charlie alluded to it but we do have.

We have $8 million 120 million customers. So from our perspective, we are not worried about losing customers or doing anything disruptive in the marketplace that could sort of shake up the current dynamics, we have a lot more to gains that we have loose so that puts us in a position where we can definitely play offense.

It takes a big part.

Alright, operator, we'll take one more before wrapping up.

Okay.

And our final media question will come from Andrew Fitzgerald with WSJ.

Hey, there it is true.

Thanks for taking the question totally if you could go into little more detail on fixed wireless.

And some of the lack of clarity that these upcoming government subsidy programs are providing do you have any.

Of what.

What you would like to see that would bring more clarity to the market and.

Once that happens.

What would fixed wireless opportunities affect any of your decisions and building out your network I E.

Make your teams.

Put some towers online or add capacity sooner in some markets rather than others.

Depending on what the opportunity to gain share in that fixed wireless market.

Thanks.

Yeah.

I'm going to ask the question to start with a real broad answer which is the government has allocated north of $60 billion for broadband it is a necessity.

In the United States to bridge the digital divide every every family every child deserves access to education health care and broadband right.

That $60 billion it properly.

Spent.

And I'm very confident could get 99.8% of the customers broadband in the United States and to become as long as long as you take the best technology.

Uh huh.

For the particular situations. So I'm very we're very very rural areas that satellite would be the right answer in very dense areas. I think it's a combination of kind of the some of the things that T mobile and Verizon and the cable companies are doing and then you've got some kind of areas that are kind of in the middle where maybe things like fixed wireless fixed wireless is not mobile.

But fixed.

And also maybe some mobile and also maybe some cable fiber those kinds of things.

It all makes sense.

And so forth.

I worry about is the first the first step is you have to know where you don't have coverage and so.

Current.

Jeremy wanted to FCC is very focused on making sure we know accurately where people don't have.

<unk> band and we didn't do a good job of that last time.

And the last.

Option or art off so.

That's the first place you start and then and then I believe you had to be technology neutral, so NTIA and the FCC it need to be technology neutral right.

Third thing you got to do.

You got to make sure that you're using all the resources 12 gig as an example, as a resource.

<unk> used terrestrial you can far exceed the number of customers that you could do via satellite. We believe both technologies can exist together, but if you had to pick one for capacity and for the American consumer you would pick terrestrial because when you when you need more and more customers you put up another tower.

Satellites are by their very nature of satellite is limited and new capacity that they can do so.

That's kind of where you start.

The way I look at it added is where there's a government subsidy it is unlikely and we're not and we're not the person.

<unk> the government subsidy, regardless of the technology that they're subsidizing.

We're not likely to be competitive so we're not going to go there where there is no subsidy and it's a fair it's a.

It's the best Man win we feel pretty confident and where perhaps we are getting a subsidy. Then obviously, we would have an advantage over everybody else. So the.

The government's going to be very involved in it they will pick winners and losers.

We prefer they didnt do but in this case, they're going to do but I do think the current FCC.

Both on both the Republican and Democratic sides are pretty focused on it and I think they understand the issues in a way that maybe they maybe they haven't in the past and so.

And I think NTIA will be very and I saw today that they had now for the first time, they actually have an agreement to work together that's critical that's really positive really positive.

And so I think that in.

Fortunately or unfortunately, I think the government is going to decide where we go.

With fixed wireless.

And how we play there but.

And our goal as a company regardless of whether we're the right company is how can we help bring.

Rod band every every every customer home just like every customer home as electricity that that should be our goal as a country, that's where we'd like to help and if we can help we want to do it if we can help them, we'll do something else.

Well. Thank you all for joining we will talk to you again next quarter.

This concludes today's call. Thank you for your participation you may now disconnect.

Yeah.

<unk>.

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