Q3 2023 EchoStar Corp Earnings Call
Yes.
[music].
Speaker 1: Ladies and gentlemen, thank you for standing by. Welcome to the EcoStar Corporation third quarter 2023 results conference call. At this time, all participants are in a listen only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star one one on your telephone. You will then hear an automated message advising your hands at three.
Ladies and gentlemen, thank you for standing by and welcome to the Echostar Corporation third quarter 2023 results Conference call.
This time I'll purchase attempts are in a listen only mode. After the speaker's presentation, there will be a question and answer session.
To ask a question. During this session you will need to press star one one on your telephone you will then hear an automated message advising your hands. It's raised to withdraw your question. Please press star one one again, please be advised that today's conference is being recorded.
Speaker 1: Two withdraw your question. Please press star 11 again. Please be advised that today's conference is being recorded. I would like now to turn the conference over to Dean, Manson Chief Legal Officer. Please go ahead.
I'd like now to turn the conference over to Dean Manson Chief Legal Officer, Sir. Please go ahead.
Speaker 2: Thank you, Michelle. Hello, everyone, and welcome to our earnings call for the third quarter of 2023. I'm joined today by Hamid Akhavan, our CEO and President. Paul Gaskey, our Chief Operating Officer. Jeffrey Boggs, Senior Vice President of Finance.
Thank you Michelle Hello, everyone and welcome to our earnings call for the third quarter of 2023, I'm joined today by Hamid Akhavan, our CEO and president.
<unk>, our chief operating officer, Jeffrey Bogs, Senior Vice President of Finance and.
Speaker 2: and Veronica Tokach, our Chief Accounting Officer.
And Veronica Veronica tow catch our chief accounting officer.
Speaker 2: As usual, we invite media to participate in a listen only mode on the call and ask that you not identify participants or their firms in your report.
As usual, we invite media to participate in a listen only mode on the call and ask that you not identify participants or their firms in your report.
Speaker 2: We also do not allow audio recording, which we ask that you respect.
We also do not allow audio recording which we ask that you respect.
Speaker 2: All statements we make during this call, other than statements of historical fact, constitute forward-looking statements, made pursuant to the safe harbor provided by the Private Security's litigation reform act of 1995.
All statements we make during this call other than statements of historical fact constitute forward looking statements made pursuant to the safe Harbor provided by the private Securities Litigation Reform Act of 1095. These forward looking statements involve known and unknown risks uncertainties and other factors that could cause our actual results to be materially different from historical <unk>.
Speaker 2: These forward-looking statements involve known and unknown risks on certain keys and other factors that could cause our actual results to be materially different from historical results and from any future results expressed or implied by the forward-looking statements. For those factors and risks, please refer to our annual report on Form 10K for the year end of December 31, 2022, file on February 23rd, and our subsequent filings made with the SEC.
Salt and from any future results expressed or implied by the forward looking statements for a list of those factors and risks. Please refer to our annual report on Form 10-K for the year ended December 31, 2022 filed on February 23rd and our subsequent filings made with the SEC.
Speaker 2: All cautionary statements we make during the call should be understood as being applicable to any forward looking statements we make wherever they appear. You should carefully consider the risks described in our reports and should not place any undue reliance on any.
All cautionary statements, we make during the call should be understood as being applicable to any forward looking statements. We make wherever they appear you should carefully consider the risks described in our report this should not place any undue reliance on any forward looking statements. We assume no responsibility for updating any forward looking statements.
Speaker 2: We assume no responsibility for updating any forward looking statements. We referred adjusted EBITDA during this call. The comparable GAP measure and the reconciliation there too are presented in our earnings release. I'll now turn the call.
We refer to adjusted EBITDA during this call the comparable GAAP measure and a reconciliation there too are presented in our earnings release I'll now turn the call over to Hamid.
Speaker 3: Thank you, Dean, and good day everyone. Our agenda for the call today is as follows. First, we'll provide a brief overview of financial activity from the third quarter. After that, we'll discuss our business strategy, which includes the three parallel work streams that I call horizons, and our progress on all three. We'll then move to question and answer session.
Thank you Dean and good day everyone.
Our agenda for the call today is as follows first we will provide a brief overview of financial activity from the third quarter. After that we will discuss our business strategy, which includes the three parallel work streams that I call Horizons and our progress on all three will then move to question and answer session.
Speaker 3: But before we jump into the third quarter results, let me briefly highlight the announcements of our contract award with Delta Airlines signed in the fourth quarter that will be the fourth star among the leading in flight connectivity program.
But before we jump into the third quarter results. Let me briefly highlight announcements of our contract award with Delta Airlines signed in the fourth quarter.
We will start among the leading in flight connectivity providers.
Speaker 3: Delta is known to be an industry leader with InFlight Connectivity Service and for conducting extensive competitive procurement.
<unk> is known to be an industry leader with in flight connectivity service and for conducting extensive competitive procurements we.
Speaker 3: We are thrilled to have earned their confidence in being selected as a new Delta partner. This new order is a major opportunity within the InFlight Communications Market that will increase our backlog and diversify our business.
We are thrilled to have earned their confidence in being selected as a new Delta partner is new order is a major opportunity within the in flight communications market that will increase our backlog and diversify our business.
Speaker 3: This is consistent with my statements in prior earnings calls regarding our continued focus on diversification and growth of our enterprise business. In addition, our Jupiter III satellite is in its final stages of in-orbit testing and the satellite is on a schedule for service launch in December .
This is consistent with my statements in prior earnings calls regarding our continued focus on diversification and growth of our enterprise business. In addition, our Jupiter three satellite.
He is in its final stages of in orbit testing and the satellite is scheduled for service launch in December.
Now, let's turn to our financials.
Speaker 3: As we have anticipated, nearing the end of Horizon 1, the third quarter marks are low point as we enter our historically strong fourth quarter.
As we have anticipated nearing the end of horizon one.
Third quarter marks our low point as we enter our historically strong fourth quarter.
Speaker 3: A revenue in the third quarter of 2023 was $413 million, lower by 84 million compared to the same period of the prior year.
Our revenue in the third quarter of 2023 was $413 million lower by $84 million compared to the same period of the prior year. The revenue decrease in the third quarter was partially driven by our consumer broadband business, which continues to be impacted by capacity constraints.
Speaker 3: The revenue decrease in the third quarter was partially driven by our consumer broadband business, which continues to be impacted by capacity constraints and other factors as we wait for our Jupiter 3 satellite
And other factors as we wait for our Jupiter three satellite to be in service.
Speaker 3: We also had a decrease in our enterprise revenue, primarily due to lower domestic and international deployments and shipments, which we expect to recognize in the fourth quarter and beyond. As I...
Also had a decrease in our enterprise revenue, primarily due to lower domestic and international deployments and shipments, which we expect to recognize in the fourth quarter and beyond.
As I have shared before.
Speaker 3: Most enterprise orders are recognized over several years, which we can create some variation or irregularity in our revenue profile as we saw with the low point in the third quarter. We remain excited about opportunities within the enterprise market. The market that we believe will continue to allow us to better diversify our business both domestically and internationally and provide cash generation through low capital investment and scalable operating leverage.
Most enterprise orders are recognized over several years, which we can create some variation or irregularity in our revenue profile as we saw with the low point in the third quarter. We remain excited about opportunities within the enterprise market and market that we believe will continue to allow us to better diversify our business.
Both domestically and internationally and provide cash generation through low capital investment and a scalable operating leverage.
Speaker 3: We are enthusiastic about our recent performance and a number of near-term prospects in the enterprise market and see that that leading to an estimated enterprise backlog approaching $2 billion.
We are enthusiastic about our recent performance and a number of near term prospects in the enterprise market and see that leading to an estimated enterprise backlog approaching $2 billion.
Speaker 3: All right, just the EBDA in the third quarter was $126 million, a decrease of 21% from last year, primarily driven by the lower revenue. We continue to focus on managing our costs to align with the change in the revenue mix to preserve our ability to generate cash.
Our adjusted EBITDA in the third quarter was $126 million a decrease of 21% from last year, primarily driven by the lower revenue we continue to focus on.
Our cost to align with the change in the revenue mix to preserve our ability to generate cash.
Speaker 3: Capital expenditures net over seed of refunds in the quarter was $79 million compared to 61 million in Q3 of last year. The increase was primarily due to increase in expenditures on the J3 satellite program.
Capital expenditures net of receipt of refunds in the quarter was $79 million compared to $61 million in Q3 of last year. The increase was primarily due to increase in expenditures on the G. III satellite program.
Speaker 3: operating cash flow defined as adjusted EBDA minus CAPEX was $47 million during the quarter, $51 million lower than Q3 over last year.
Operating cash flow defined as adjusted EBITDA minus Capex was $47 million during the quarter $51 million lower than Q3 of last year.
Speaker 3: We ended the quarter with $2 billion of cash and marketable security.
We ended the quarter with $2 billion of cash and marketable securities I remain confident about our strategic direction and expectation and execution plan and our ability to generate healthy returns and cash to execute on many opportunities that are ahead of us.
Speaker 3: Let me now turn the call over to Paul, who will provide some additional specifics on the quarter and our horizon one and two activities.
Let me now turn the call over to Paul who will provide some additional specifics on the quarter and our horizon, one and two activities.
Thank you Hamid.
Under our horizon strategy that we have previously explained is dividing our strategic focus into three periods of time near term horizon, one mid term horizon, two and transformational horizon three.
Speaker 2: We're about to enter our rise in two as Jupiter's three combs into service later this quarter.
We are about to enter our horizon two as Jupiter three comes into service later this quarter we.
Speaker 2: We will begin to focus on deploying the next generation HUSANET service across the Americas and continue the expansion of our global enterprise business, including the government sector and our managed services portfolio. During this midterm period, we also expect to be launching our hybrid LeoGEO enterprise solutions as well as leveraging our own manufactured products to pursue growth and further diversification.
We will begin to focus on deploying the next generation Hughesnet service across the Americas and continue the expansion of our global enterprise business, including the government sector in our managed services portfolio. During this mid term period. We also expect to be launching our hybrid Leo Geo enterprise solutions as well as leveraging our own manufactured products.
<unk> to pursue growth and further diversification.
Speaker 2: Jupiter III reached its orbital slot earlier in Q3. The MaxR team has fully deployed all of its antennas, and Jupiter III is on track to begin transmission testing with our extensive ground system shortly. And we expect the satellite to enter into service in December .
Yeah.
Jupiter three reached its orbital slot earlier in Q3, the Max our team has fully deployed all of its antennas and Jupiter three is on track to begin transmission testing with our extensive ground system shortly and we expect the satellite to enter into service in December.
Speaker 2: Once in service, Jupiter 3 will deliver new broadband services in North and South America and will allow us to focus quickly on addressing the continued demand for high-speed broadband service throughout the region.
Once in service Jupiter, three we'll deliver new broadband services in North and South America and will allow us to focus quickly on addressing the continued demand for high speed broadband service throughout the region.
Speaker 2: In preparation for the start of Jupyter 3 service, our consumer team is finalizing the development of new service plans with higher speeds and extension of our HughesNet Fusion for the ultimate high-speed, low-latency satellite internet experience.
In preparation for the start of Jupiter three service our consumer team is finalizing the development of new service plans with higher speeds and extension of our Hughesnet fusion.
For the ultimate high speed low latency satellite Internet experience.
Speaker 2: We believe the market is eager for these robust offerings and we continue to compete with an attractive portfolio of service plans that will be simple to understand, aligned to our customers needs.
We believe the market is eager for these robust offerings and we continue to compete with an attractive portfolio of service plans that will be simple to understand aligned.
Our customers' needs.
Speaker 2: The market has reacted well to our fusion service offering. We continue to see considerable percentage of our new subscribers select fusion service.
The market has reacted well to our fusion service offering we continue to see considerable percentage of our new subscribers select fusion service.
Speaker 2: which is available on our highest ARCU plans. The HughesNet Fusion plans have been well-received by existing and new subscribers, and we expect to expand the service to help attract new customers and improve our overall economics as we launch Jupyter 3 service. While preparing for the launch of Jupyter 3, we remain focused on operational efficiencies, yield optimization of our North America satellite capacity, and further optimization of our subscriber acquisition strategy.
Which is available on our highest arco plans. The hughesnet fusion plans have been well received by existing and new subscribers and we expect to expand the service to help attract new customers and improve our overall economics as we launched Jupiter three service, while preparing for the launch of Jupiter three we remain focused on operational efficiencies.
Yield optimization of our North America satellite capacity and further optimization of our subscriber acquisition strategies. Additionally.
Speaker 2: Additionally, we continue to improve our cost and performance through the deployment of AI and ML automation, improved processes, supply efficiencies, of course, not compromising the end user experience.
Additionally, we continue to improve our cost and performance through the deployment of AI and ml automation improved processes supply efficiencies of course, not compromising the end user experience.
Speaker 2: Moving to our North American enterprise business, we are entering Horizon 2 with a very significant achievement. As Hamid mentioned, we are thrilled to have completed a contract with Delta Airlines to deploy our huge inflight connectivity solution to deliver Wi-Fi and video services to passengers on more than 400 Boeing 717 and regional jets serving North America.
Moving to our North American Enterprise business, we are entering horizon, two with a very significant achievement as Hamid mentioned, we are thrilled to have completed our contract with Delta Airlines to deploy our Hughes inflight connectivity solution to.
To deliver Wi Fi and video services to passengers on more than 400, Boeing 707 in regional Jets, serving North America.
Speaker 2: Our solution utilizes the Jupiter satellite assets in a very innovative way to provide outstanding in-cabin communication service.
Our solution utilizes the Jupiter satellite assets in a very innovative way to provide outstanding in cabin communication service.
Speaker 2: We've been working extensively with Delta Airlines team for a number of months and plan initial installations in mid 2024. This program marks a change in business strategy. After more than 20 years, supporting numerous inflight communications providers with our equipment support. We are now expanding to offer our unique inflight communication solutions. Directly to commercial airlines.
We have been working extensively with Delta Airlines team for a number of months and planned initial installations in mid 2020 for this program marks a change in business strategy after more than 20 years supporting numerous inflect communications providers with our equipment support we are now expanding to offer our unique inflight.
<unk> solutions directly to commercial airlines.
Speaker 2: Regarding the Q3 North America enterprise results, we received several expansion and renewal orders from retailers and upgrade orders in the US retail petroleum market. In addition, Explorer placed a significant order for the terminals that will support their broadband services in Canada using Jupiter 3.
Regarding the Q3 North America Enterprise results, we received several expansion and renewal orders from retailers and upgrade orders in the U S retail petroleum market.
In addition, explorer placed a significant order for the terminals that will support their broadband services in Canada using Jupiter three.
Speaker 2: In our OneWeb program during the third quarter, we continue deliveries of production gateways and systems to meet the OneWeb service implementation plan.
And our web one web program during the third quarter, we continued deliveries of production gateways and systems to meet the one web service implementation plan.
Speaker 4: We have shipped more than 23,000 satellite subscriber modules for inclusion in OneWeb modems. We are seeing significant interest in our previously announced electronically speared antennas, or ESAs, from resellers, distribution partners, and direct customers.
We have shipped more than 23000 satellite subscriber modules for inclusion in one web modems, we are seeing significant interest in our previously announced electronically steered antennas or <unk> from resellers distribution partners and direct customers.
Speaker 4: We expect factory shipments to begin this quarter with initial units going to OneWeb for their customers, as well as to customers of our managed LEO service offering featuring OneWeb capacity.
We expect factory shipments to begin this quarter with initial units going to one web for their customers as well as to customers of our managed Leo service offering featuring one web capacity.
Speaker 4: Our government and defense segment had a strong third quarter with follow-on orders from the U.S. Postal Service for broadband services in a number of their rural offices, the state of Pennsylvania for broadband services, and Boeing for their PTES program, along with add-ons to our DOD contract supporting the Navy for 5G systems enhancements for the Whitby Island Naval Air Station Advanced Flight Line Program, which we had previously delivered in the first half of the year.
Our government and defense segment had a strong third quarter with follow on orders from the U S. Postal service for broadband services in a number of their role offices. The state of Pennsylvania for broadband services and Boeing for their <unk> program, along with add ons to our Dod contracts supporting the Navy for <unk> systems enhancements for the.
With the island Naval Air Station Advanced Flight Land program, which we had previously delivered in the first half of the year.
Speaker 4: We also received an order from prime contractor SES Space and Defense in support of a new Air Force multi-orbit MEO and GEO program for airborne-based communications with software-defined networking, open a new era for our defense-based communications product.
We also received an order from a prime contractor SCS space and defense and support of our New Air Force multi orbit MEO and Geo program for Airborne based communications with software defined networking opened a new era for our defense base communications products.
Speaker 4: Now to our international operations, we expect opportunities and sell backhaul and digital inclusion projects to continue to expand horizon to as companies and governments extend their reach to underserved communities.
Now to our international operations, we expect opportunities in cell backhaul and digital inclusion projects to continue to expand horizon, two as companies and governments extend their reach to underserved communities.
Speaker 4: We believe our Jupyter system remains the de facto standard in broadband geo-satellite communications globally, and our new LEO ESA for use on OneWeb allows us to strongly compete for these new opportunities going forward.
We believe our Jupiter system.
Remains the de facto standard in broadband Geo satellite communications globally, and our new Leo Aesop for use on one web allows us to strong and compete for these new opportunities going forward.
Speaker 4: In Latin America, the new Jupyter 3 capacity will allow us to expand our enterprise services for a number of upcoming such projects. In Mexico, we've seen continued expansion of cell backhaul and digital inclusion projects with additional locations as well as additional capacity. Throughout Latin America, we've added over 1,300 schools leveraging our equipment and Jupyter capacity.
In Latin America, the new Jupiter three capacity will allow us to expand our enterprise services for a number of upcoming such projects in Mexico. We've seen continued expansion of cell backhaul and digital inclusion projects with additional locations as well as additional capacity throughout Latin America, we've added over 1500 schools lever.
<unk> our equipment in Jupiter capacity.
Speaker 4: In Asia, we also see similar opportunities for cell backhaul and digital inclusion projects. As an example, in last quarter in India, we fulfilled a second order from Airtel for 4G backhaul, supporting a significant USO project in Maharashtra.
In Asia, we also see similar opportunities for cell backhaul and digital inclusion projects as an example in last quarter in India. We fulfilled a second order from Airtel for <unk> backhaul supporting a significant USO project in Maharashtra.
Speaker 4: We are also upgrading the Indian Army's battlefield surveillance system to Jupiter technology.
We are also upgrading the Indian army battlefield surveillance system to Jupiter technology.
Speaker 4: While in Central Asia, we were awarded and have delivered a Jupyter system that will provide Internet services to remote communities, and in Southeast Asia, we received an order for a Jupyter system for use on a high throughput satellite.
While in Central Asia. We are we were awarded and have delivered a Jupiter system that will provide internet services to remote communities and in Southeast Asia. We received an order for a competitor system for use on a.
High throughput satellite.
Speaker 4: Lastly, in Latin America consumer business, we look forward to the commencement of services on Jupyter 3, which is expected in the first quarter of next year. This will allow us to serve additional customers in areas with high demand, as well as to enhance the user experience for both new and existing customers. Now let me
Lastly, in Latin America consumer business, we look forward to the commencement of services on Jupiter, three which is expected in the first quarter of next year. This will allow us to serve additional customers in areas with high demand as well as to enhance the user experience for both new and existing customers.
Now, let me turn the call back to Hamid.
Speaker 3: Thank you, Paul, for the summary of our Horizon 1 and 2 activities from the third quarter of this year. Even though Jupiter 3 has launched successfully, we continue working on all our work streams, Horizon 1, 2, and 3 in parallel. As for Horizon 3, it is our longer term strategy to expand into new markets through organic innovation and potential acquisitions.
Thank you Paul for the summary of our horizon one into activities from the third quarter of this year, even though Jupiter three has launched successfully we continue working on all our work streams horizon, one two and three in parallel.
As for Horizon III. It is our longer term strategy to expand into new markets through organic innovation and potential acquisitions, so that end.
Speaker 3: To that end, earlier today we filed an update to our S-IV registration statement with the SEC in relation to our pending merger with DISH.
Earlier today, we filed an update to our S. Four registration statement with the SEC in relation to our pending merger with dish, we expect to export to go effective in the coming days and are on track to close the transaction this year.
Speaker 3: We expect S4 to go effective in the coming days and are on track to close the transaction this year.
Speaker 3: In addition, we continue evolving our S-band prospects. As we announced during the first quarter, construction of our EchoStar Lyra Leo constellation is on the way. We continue to be on track to launch the first line of satellites in late 2024 or early 2025 to begin offering store and forward internet of things, machine to machine, and other data services.
In addition, we continue evolving our S band prospects as we announced during the first quarter construction of Echostar Lira Leo constellation is underway. We are continue we continue to be on track.
To launch the first light of satellites in late 2024, or early 2025 to begin offering store and forward Internet of things machine to machine and other data services.
Speaker 3: At the same time, we are developing opportunities for our global SBAN assets.
At the same time, we are developing opportunities for our global <unk> assets. For example, we continue to bring on new customers in Europe for our Echostar mobile Lora enabled Iot service.
Speaker 3: For example, we continue to bring on new customers in Europe for our Echostar mobile LoRa-enabled IoT service and are investing in the development of 3GPP release 17 to complement the existing LoRa technology.
Investing in the development of three GPP released 17 to complement the existing Lora technology.
Speaker 3: Let me now turn it over to the operator to start the Q&A session.
Let me now I'll turn it over to the operator to start the Q&A session.
Speaker 1: Thank you. As a reminder to ask a question, please press star 11 on your telephone and wait for your name to be announced.
Thank you as a reminder to ask a question. Please press star one on your telephone and wait for your name to be announced.
Speaker 1: To withdraw your question, please press star 11 again. Please stand by while we compile the Q&A roster.
To withdraw your question. Please press star one again, please standby, while we compile the Q&A roster.
Yeah.
Speaker 1: The first question comes from Rick Prentiss with Raymond James. Your line is open.
The first question comes from Ric Prentiss with Raymond James Your line is open.
Speaker 5: Good morning everyone. This is Brent on for Rick. Thanks for the question. First one on the dish deal what milestones are left for closing the deal and Hamid with you set to become dish CEO next week as opposed to at the deal close. What should we read from that in terms of the merger timeline?
Good morning, everyone. This is Brent on for Rick Thanks for the question.
First one on the dish deal what milestones are left for closing the deal and Hamid with you set to become the CEO next week as opposed to at the deal close what should we read from that in terms of the merger timeline.
Yeah.
Speaker 3: Brent, I'll start the answer in the second part and I defer to Dean who's on a call for the first part regarding the milestones. Look, there's nothing more to read regarding my taking a dual role here. I mean, candidly, we have very high confidence that the company
Okay.
Brent.
I'll start the answering the second part and I defer to Dean.
He was on a call for for the first part regarding the milestones look theres nothing more to read.
Regarding my taking a dual role here I mean candidly, we have very high confidence that the companies will emerge and there is really no obstacles that we are aware of that would stand in our way of getting the companies together.
Speaker 3: We'll merge and there's, you know, really no obstacles that we are aware of that would stand in our way of getting the companies together, you know, time, you know, it's an opportunity to make sure that we get a good head start for.
Jim.
It's an opportunity to make sure that we get a good head start for 2024 ahead as I mentioned.
Speaker 3: 2024 ahead, you know, as I mentioned, uh, you know, we, we just passed an echo. So we just passed our lowest point of the, you know, performance and, um, we hope that the similar, you know, kind of situation develops a day so we can bring the companies together and look for a much more.
We just passed an echostar, we just passed our lowest point of the performance in.
We hope that dissimilar.
Kind of situation develops additional we can bring the companies together and look for a much more effective and energetic performance into 2024. So wanted to just get that hit starts as budgeting process going on other things going on that would allow me to be better in shape to run the business. When the two companies on marriage really does not much more to it to read them.
Speaker 3: you know, effective and energetic performance in the 2024. So I want to just get that hit start this budgeting process going on, other things going on that would allow me to, you know, be better in shape to run the business when the two companies are merged. Really there's not much more to it to read than, you know, the whole ability to at least.
The whole ability to at least.
Speaker 3: you know, get the runway, you know, started for 2024. Dean, I'll pass it to you regarding the milestones left before the merger closes.
Get the runway.
Started for 2024.
Dean I will pass it to you regarding the milestones left before the merger closes.
Speaker 4: Sure, yeah, thanks. I mean, Brent, yeah, it's pretty straightforward from this point onward. You know, we just need to mail the, the information statement to shareholders, wait the prescribed amount of time. There are a couple of small things that that that remain that should be done. Well, within that time period, you know, such as the proforma FCC approval for for transfer control.
Sure. Thanks, Brent Yeah, it's pretty straightforward from this point onward, we just need to.
Mail.
Information statement to shareholders.
The prescribed amount of time.
There are a couple of.
Small things that remain that should be done well within that time period, such as the pro forma FCC approval for transfer control of certain licenses.
Speaker 4: But as we said in our public statements, we fully expect this to be wrapped up.
As we said in our public statements, we fully expect this to be wrapped up by year end.
Speaker 5: Okay, and then you announced an unusual move flipping the structure for the merger for Echostar to be the surviving company now. Can you give us some more detail on the rationale for that?
Okay, and then you announced an unusual move flipping the structure for the merger for Echostar to be the surviving company now can you give us some more detail on the rationale for that.
Speaker 3: Um, yeah, I'm, I'm happy to pick up on the, the, the, no, go.
Yes.
Yes.
Yes.
Please go ahead.
No go ahead go ahead please.
Speaker 4: Sure, no, I was just I was just going to add that this, you know, this really was the result of looking at what's what's what's the optimal way to structure the companies that are ultimately going to be merged and operated as one company. So, it really wasn't.
Sure No I was just I was just going to add that this.
This really was the result of looking at what's what's the optimal way to structure the.
The companies that are ultimately going to emerge and operated as one company. So it really wasn't.
Speaker 4: There wasn't any thought of it being one company acquiring the other, although as a strict legal matter, that's the way these things get structured. As we said in the statements we made when we announced the modified structure, this gives us greater flexibility in terms of capital and capital allocation and some of the contractual and debt-related risks.
There wasn't any thought of it being one company acquiring the other although as a strict legal matter. That's the way these things get structured as we.
We said in the statements we made when we announced the modified structure.
Gives us.
Greater flexibility in terms of.
Capital and capital allocation.
<unk>.
Some of the contractual and debt related restrictions that are in place at the different companies.
This creates.
Incrementally more flexibility. So I was just it was just seen is.
Speaker 4: somewhat better, somewhat more flexible structure, but really exactly the same combined.
Somewhat better somewhat more flexible structure, but really exactly the same.
The combined company in the end in terms of how it will be operated and managed.
Speaker 5: Okay. And then lastly, you talked about the inflight connectivity deal with Delta. What drove the decision to enter IFC that's been a competitive market historically? And can you also update us on the progress of the Galileo project with GoGo?
Okay, and then lastly, you talked about the in flight connectivity deal with Delta.
The decision to enter IFC that in a competitive market historically.
Can you also update us on the progress the Gallo Leo project.
I'll go.
Okay.
Speaker 3: Yes, let me say something about the in-flight business and certainly we'll ask Paul to embellish and add to that. Look, we have been, its use has been in the in-flight business since 2012.
Yes, let me let me.
Say something about the in flight business uncertainty, we will ask Paul to.
Embellish and add to that that we have been its use has been in the in the in flight business since 2012.
Speaker 3: We just have not been taking the lead position and we have provided solutions through other parties that have served that market. We have been serving a numerous number of airlines globally around the world. And so this was just an opportunity for us.
We just have not been taking the lead position and we have provided solutions through other parties that have served that market. We have been serving in numerous number of airlines globally.
Around the world and so this was just an opportunity for us to step up and become a direct supplier an integrated supplier that can provide into in all aspects of the service. So this is not a new era as I said is not a new area for us we understand the market very well.
Speaker 3: to step up and become a direct supplier, an integrated supplier that can provide end-to-end, all aspects of the service.
Speaker 3: So this is not a new area, as I said, it's not a new area for us. We understand the market very well. We have been, through third parties, we have been supplier to Southwest Airlines, Air France, KLM, Turkish Airlines, Spirit Airlines, other airlines.
And to third parties, we have been a supplier to southwest Airlines in France, KLM Turkish Airlines and Spirit Airlines other airlines.
Speaker 3: You know, the opportunities here, we look at the market, a market that is, you know, today $1.3 billion, but is expected to be more than $4 billion.
He is now.
<unk>, we look at the market a market that is.
Today, $1 $3 billion, but is expected to be more than $4 billion.
Speaker 3: in 2032. So this is one of the big growth opportunities in the enterprise business. We find ourselves in a very prime position, both from a capacity perspective, because of re-arrival and also because of...
In 2032. So this is one of the big growth opportunities in the enterprise business, we find ourselves in a very prime position both from a capacity perspective, because of Jupiter three arrival and also because of all the great technologies that a huge team has developed to equip the planes in provide.
Speaker 3: great technologies that a huge team has developed to equip the planes and provide
Speaker 3: Excellent service. Paul, is there anything else you'd like to add with respect to our decision to move to this area?
Excellent service, Paul is there anything else you'd like to add.
With respect to our decision to move to this area.
Speaker 4: No, I think that's the main points. I think underneath that decision, of course, is we have ideally situated assets with the Jupiter fleet, which allows us to provide a good service in the regions that we're discussing right now. And also because of our extensive activities in the Leo space with one web and our antenna technology there, we think that there's some seriously good opportunities coming up in the near future.
No I think thats the main points I think underneath.
That decision of course, as we have ideally situated assets with the Jupiter fleet, which allows us to provide a good service in the regions that we're discussing right now and also because of our extensive activities in the in the Leo space with <unk> and our antenna technology. There we think that there is.
Seriously.
Good opportunities coming up in the near future.
Yes.
Speaker 5: Okay, and related to that, can you give an update on where you are in the Go Go project and the timeline there?
Okay and.
Related to that could you give an update on where you are in that Gogo project.
And the timeline there.
Speaker 6: Well, I would just say it's going very well and I would I'd have to leave it to go go to describe You know where they are in timing for their market So I'll leave it at that, but it is going well Okay, thanks for the questions guys
Well I would just say, it's going very well and I would I'd have to leave it to gogo to describe.
<unk>.
Where they are and timing for that end market.
So I'll leave it at that but it is going well.
Okay. Thanks for the questions guys.
Please standby for the next question.
Speaker 1: The next question comes from Michael Rollins with City. Your line is open. You've been updated.
The next question comes from Michael Rollins with Citi. Your line is open.
Thanks, and good morning.
Speaker 7: couple questions if I could. First, the broadband market has evolved.
Couple of questions if I could first.
The broadband market has evolved.
Speaker 7: significantly since you first started talking about the J3 opportunity. Can, can you remind us?
<unk> since you first started talking about the chase III opportunity Ken.
Can you remind us.
Speaker 7: how we should be thinking about how the push to commercial service later this year and into 24 can influence subscriber and cash flow results and how much of a possible boost to subscriber performance.
How we should be thinking about how the push to commercial service later this year and into 'twenty four.
Influenced subscriber and cash flow results and how much of a.
Possible boost to subscriber performance.
Speaker 7: should be in the back of our minds. And then just separately, in the SEC filing today for Echo Star, there is a reference that Echo Star may operate dish networks business in a different manner from how dish network has operated it in the past.
Should be in the back of our minds and then just separately.
<unk> SEC filing today for Echostar and there was a reference that Echostar may operate dish networks business in a different manner from how dish network has operated in the past.
Speaker 7: And just curious if you could unpack that a little bit and share some of your thoughts on how you how you may want to run it differently.
And just curious if you could unpack that a little bit and share some of your thoughts on how you.
You may want to run it differently.
Thank you.
Speaker 3: I will make some statements about
Okay.
I will make some statements about.
Speaker 3: Echo Star's performance next year, I probably cannot add much more than that S4 has already put on the market. I mean, just back to Echo Star, we expect, we certainly expect growth next year. I mean, in a number of consumers that we have.
Echostar <unk> performance next year, I, probably cannot add much more than the S. Four has already put on the market.
With respect to the Echostar, we expect.
Certainly expect growth next year I mean.
In a number of consumers that we have.
Speaker 8: But I am more excited about...
But I am more excited about the.
Speaker 3: the significant opportunities that enterprise brings us above that, we have a place in the consumer market that we think is well within the protection of our pricing and offering that is differentiated and the very stalling is operating. And we see the market actually be very ripe for the segment that we are addressing. Well, we are not. But we are looking for aground to identify ours are still as stimulating andvideo when we see possession and something.
The significant opportunities that enterprise brings us above that.
We haven't.
Place in the consumer market that we think is well within the protection of our pricing and offering that is differentiated then.
Various starlink is operating and we see the market actually be.
Very ripe for the segment that we're addressing well we are not.
Speaker 3: considering ourselves primarily tied and dependent on our consumer business as it had been, I would say, many years past. More and more we see and very large opportunities come our way in the enterprise. Again, I mentioned during the call that we expect our backlog enterprise.
Considering ourselves primarily.
Tight and dependent on our <unk>.
Consumer business as it had been I would say many years past.
More and more we're seeing very large opportunities come our way in the enterprise it again.
<unk>.
Mentioned during the call that we expect.
Our backlog enterprise backlog.
Speaker 3: to by end of this year, you know, approach $2 billion. That is, that is very significant. As you can see, this is a shift.
By end of this year approach $2 billion.
That is that is very significant as you can see this is a shift.
Speaker 3: of our business mix towards enterprise. Now, enterprise.
Our business mix towards enterprise now enterprise.
Speaker 3: has lower gross margin, but it has far lower capex requirements and has far lower churn in the backlog is over the course of many years. And once you are in an enterprise business, you generally expect it to remain there. You remained there for many years.
Has lower gross margin, but he has far lower capex requirements and has far lower churn in the backlog is over a course of many years and once you are in an enterprise business you would generally expect it to remain there youll remainder for many years very very.
Speaker 3: very, very, you know, sustainable business and has a long, you know, horizon and long, long life. So we see our business shifting in that direction. We clearly see 2024 as a barrier than 2023. And in fact, 23, this quarter was the lowest point that we had anticipated. And now from here on, in fact, you'll see it.
Sustainable business and has a long.
Horizon in lung lung lives, so that we see our business shifting in that direction and we clearly see 2024 is a better year than 2023 and in fact 23. This quarter was the lowest point that we had anticipated and now from here on in fact, you will see it.
Speaker 3: you know, improvement in our numbers, in all metrics in Fort Quarter, even in advance of J3 show up. In terms of revenue, you will see us, you know, improving in every metric, you know, significantly, particularly in revenue.
Improvement in our numbers.
In all metrics in fourth quarter, even in advance of G. III showing up in terms of revenue you will see us improve.
Improving in every metric significantly, particularly in revenue.
Speaker 3: It has been historically also the performance of the business.
Okay.
It has been historically also the performance of the business.
Speaker 3: You know, as it comes to dish, I mean, we obviously a combination of two companies will have.
As a constant dish I mean, we obviously.
A combination of two companies will have.
Speaker 3: You know, a number of opportunities here, for instance, the whole enterprise business.
A number of opportunities here for instance, the whole enterprise business.
Speaker 3: You know, the 5G, you know, private 5G and enterprise 5G.
The <unk> project <unk> and enterprise fiber.
Speaker 3: will become a significant, better opportunity when we combine our enterprise business here at Echo, Echo Star with the capabilities that the dish has. So those opportunities will become more tangible and more real. I can't say much more than what we have said on Beyond. That's in the S4 today, just obvious reasons, but.
We will become a significantly better opportunity when we combine our enterprise business unit Echo Echostar with the.
The capabilities that the dish has so those opportunities will become more tangible and more real I can't say much more than what we have said on beyond <unk> four today, just obvious reasons, but.
Speaker 3: I guess I stopped right there, and if there's any more specific narrow questions, I'll be happy to try.
<unk>.
I guess I'll stop right, there and if theres any more specific narrow questions I'd be happy to try to answer them.
Speaker 7: Thanks. Maybe just one other follow-up. You mentioned the approaching $2 billion of backlog at the end of this year. I think the Q reference, if this is the right comparable, a $1.5 billion of contracted revenue in the backlog as of September 30th. So.
Thanks.
Maybe just one other follow up.
You mentioned approaching $2 billion of backlog at the end of this year I think the Q referenced this is the right comparable 1 billion $1 5 billion of contracted revenue and the backlog as of September 30th.
So.
Speaker 7: and close that between the 1.5 and the 2 if that's the right comparison.
To close that.
Between one five and the two if thats the right comparison.
Speaker 7: Is that partly the Delta agreement that you disclose or are there new other incremental agreements or opportunities that we should be mindful of within that context?
Is that partly the delta agreement that you disclosed or are there new other incremental agreements or opportunities that we should be mindful of within that context.
Speaker 3: So we're looking at a number of deals and opportunities, as I said, our enterprise business is facing a significant amount of demand from a variety of sources, obviously, inflight businesses won and there are multiple opportunities there that we're working on.
So we're looking at a number of deals and opportunities as I said into our enterprise business.
It's facing a significant amount of demand from a variety of sources. Obviously in flight business is one and there are multiple opportunities there that we're working on and there is other segments that are not related to in flight.
Speaker 3: And there's other segments that are not related to inflight. I mean, we have deals from far east and other places.
We have deals from far east and other places.
Speaker 3: that are materializing that are in our mind are very significant. So, you know, that's, please take that as a basket. Don't take that as, you know, any single deal, but we are quite confident that we are approaching $2 billion of backlog by end of the year. Again, what's really important is not to study every individual component in that. What's relevant is that, you know, our business,
That are materializing.
In our mind, a very significant so.
Please take that as a basket don't take it as any single deal.
But we are quite confident that we are approaching $2 billion.
Of.
Backlog by end of the year again.
Really important is not the city every individual component in that what's relevant is that.
Our business is very sustainable.
Speaker 3: is very sustainable. And this backlog has vastly grown. And we are, it could even grow significantly beyond this as we enter in the first couple of quarters of next year. We are working on opportunities that will manifest themselves in that time from the expectant to manifest. So it's a gradual shift of our business towards enterprise in a very long horizon of foreseeable revenues and cash flows. And we are working on a very long horizon of foreseeable revenues and cash flows.
This backlog has vastly grown and we are.
It could even grow significantly beyond this as we enter in the first couple of quarters of next year. We are working on opportunities that will manifest themselves in that time frame you expect them to manifest so.
It's a gradual shift of our business towards enterprise.
And a very long horizon, foreseeable revenues and cash flows.
Thanks Thats helpful.
Speaker 1: As a reminder to ask a question, please press store 11 on your telephone and wait for your name to be announced. Please stand by for the next question.
As a reminder to ask a question. Please press star one on your telephone and wait for your name to be announced please standby for the next question.
Speaker 1: The next question comes from Chris Quilty with Quilty's face. Your line is open.
The next question comes from Chris Quilty with Quilty space. Your line is open.
Speaker 2: Thanks guys, congratulations on the Delta RJ deal that was a surprise given your past business practice.
Thanks, guys. Congratulations on the Delta RJ deal that was a surprise given your past.
Business practice of staying indirect.
And it sounds like Youre going to make a bigger commercial aviation push and that opens up the question. Your satellite assets, our North American base do you intend to build out a global service infrastructure, and obviously that would involve partnering for global capacity.
Or is there a desire to build out that capacity and then the secondary question.
To that commercial aviation market is which band again.
A band.
But youre dealing with Ku on your Leo strategy and there are no K, a leos that exists today.
It's a lot, but if you can sort of unpack what youre thinking.
Speaker 3: Yeah Chris, remember that we are just, we are not purely a connectivity provider as it comes to our services enterprise services. We provide significant amount of...
Yes, Chris.
Remember that.
We are just we are not purely.
A connectivity provider as it comes to our services enterprise services.
We provide significant amount of.
Speaker 3: technical products and tenas are electrically steered and tenas are software that goes into there. There are many many satellite operations around the world that use our software and services.
Technical products antennas are electrically steered antennas are software that goes into it.
There are many many satellite.
Operations around the world that use our software and services.
Speaker 3: So without disclosing too much information that could potentially harm us in a competitive way, I'd like to say that, while we have direct connectivity of our own satellites in the Americas, we can work with others around the world to provide service and other products to them to have a bigger play in the Inflite business. So I'll just...
<unk>.
So.
Without.
Disclosing too much.
Information that could potentially harmless.
Competitive way I'd like to say that.
We while we have direct connectivity of our own satellites.
In the Americas.
We can work with others around the world to provide service and other products to them.
To make.
To have a bigger play in the in flight business. So I'll just <unk>.
Speaker 3: stop there. But we are definitely a global company. Our footprints, connectivity maybe one aspect of it, but a footprint of our products and services are global.
Stop there.
But we are definitely a global company our footprints.
Activity, maybe one aspect of it but a footprint of our.
Products and services our global.
Speaker 3: And that's how we think that in the, in the, in flight business, we can have a play that is bigger than just the American.
And that's how we think that India entered in the Internet business. We can have a play that is bigger than just.
The Americas.
Speaker 9: Speaking of the Americas Jupiter 3 and correct me if I'm wrong when you guys are You start with the
Got it.
Speaking of the Americas, Jupiter, three and correct me if I'm wrong. When you guys Architected that thing back in <unk>.
<unk> <unk>.
<unk> thousand 14, 15, I mean that was five years before Leo broadband ever existed and I think at the time.
The plumbing with sort of optimized for consumer.
Does that create any issues for serving.
Enterprise market clearly found a way to operate it in aviation and I think you made mention of the fact that you did something special in terms of the design. So how flexible is Jupiter three if you define the need to pivot more towards some of these enterprise applications.
Okay.
Paul perhaps you want to comment on that.
Yes, certainly.
Speaker 2: So, Jupiter III, first off, while we had a mission of serving consumers, we also had a major portion of our plan anticipated aeronautical services as well as other enterprise services. So it's not a new area. Additionally, the way we designed it was to get as much capacity as possible in key areas across the region. And so it does that very effectively.
So Jupiter three first off while we had a mission of serving consumers. We also had a major portion of our plan anticipated aeronautical services as well as well as other enterprise services. So it's not a new area. Additionally.
The way, we designed it was to get as much capacity as possible in key areas.
Across the region and so it does that very effectively.
Speaker 2: We have, if you look at the typical inflight service,
Have.
If you look at the typical.
In flight service, probably the biggest obstacle that op.
Speaker 2: Probably the biggest obstacle that operations has is serving the hub area cities. And that's where the Jupiter-3 capacity, a particular comes in quite handy for serving them. And if you look at our architecture, we actually utilize all three Jupiter satellites to be the fabric of capability. So depending on where we are and how much capacity we need we'll draw on any one of the three.
Operations has is serving the hub area cities and Thats, where the Jupiter three capacity in particular comes in quite.
Quite handy for serving them and if you look at our architecture, we actually utilize all three Jupiter satellites. So we've a fabric of capability so depending on where we are and how much capacity, we need we will draw on any one of the three.
Speaker 6: And so that's how we generally build the system. And at the same time, we do have capacity available from some other business partners to help us fill that out in the few areas that we are not covering. So we think we're in pretty good shape with that. So speaking of all three, which is the most crucial. And anyway, this completely depends on one of the three we are not covering.
And so so that's how we generally build the system and at the same time, we do have.
Capacity available from some other business partners to help us fill that out in the few areas that we are not covering so so we think we're in pretty good shape with that.
Speaking of all three Jupiter three space ways now past. This design line house, how is that holding up.
Speaker 2: Well, it's within days of being completely decommissioned in the graveyard orbit. So yeah, it's been moving quietly across the arc here over the last month.
Well.
Within days of being completely decommissioned in the in the graveyard orbit.
So yes, it's been moving quietly across the arc here over the last months.
Speaker 9: Clearly not creating any capacity.
So clearly not creating any capacity issues given the availability of Jupiter three.
Speaker 9: No, no, we drained off all of our subscribers early to make sure they had continuity of service. And so, you know, while the spaceway service really well, we wanted to make sure customers got the newer services and we moved them. Gotcha. Quick reference, I think in the transcript you had mentioned.
No no we drained off all of our subscribers.
Early to make sure they had the continuity of service.
So while while the space way served us really well we wanted to make sure customers got the newer services and we moved them.
Got you.
A quick reference I think in the transcript you had mentioned you were excited about some defense programs and I missed it was one tied in with Ses can you maybe give a little bit more.
Color on that particular program, which was at press release I don't recall, yes, there wasn't released for it yes that program is a very interesting one because the <unk>.
Speaker 2: Yes, there was a release for it. Yeah, that program is very interesting one because the SES defense group has a, obviously they have their Empower Services, which are MEOs, and they obviously have plenty of GOs. And so we have a molding technology that's accepted by DOD, that we've blended in with the requirements they had to provide this multi-orbit solution.
Defense Group has they obviously they have their empower services, which are <unk> and they.
They obviously have plenty of Geos and so we have a modem technology that.
Accepted by Dod.
That we blended in with some requirements they had to provide this multi orbit solution.
Speaker 6: I think they previously announced this probably, I don't know, month or two ago, I can probably give it reference at some point, but yeah, it's announced. And very interesting, very exciting. It's a sample of what is gonna be happening as we go forward in the defense space.
I think they had previously announced this.
Probably I don't know a month or two ago I can probably give you a reference at some point, but yes, it's announced and very interesting very exciting.
<unk> of what is going to be happening as we go forward in the defense space.
Speaker 9: And then a final question here, and you may have already mentioned it in the call, but...
Great.
Final question here and you may have already mentioned it in the call but.
What is the current timing on both of the antennas for delivery, both the one web and Gogo any change in sort of in the development and production there.
Speaker 2: Yeah, I think, first off, I think I mentioned in the call here a little bit, this quarter we're shipping the one web antennas that going really well. They'll leave the factory shortly.
Yes, I think first off I think I mentioned in the call here a little bit.
This quarter, we're shipping the one web antenna is they are going really well they'll leave the factory shortly.
Speaker 2: Those are the fixed antennas, and we'll be using those in a number of places as well as where one web will apply them.
Those are the fixed antennas.
And we will be using those in a number of places as well as where one web will apply them.
Speaker 6: And as far as the GOGO antennas go, we're going to leave it to GOGO to respond to the schedules on that, but they, but the program's going very well. The system looks like it's performing better than we thought, so we're very happy with that. Very good. Thank you, John .
And as far as the Gogo antennas go we're going to leave it to gogo to respond to the schedules on that but they but the program is going very well the system looks looks like it's performing better than we had thought so we're very happy with that.
Very good thank you gentlemen.
Please standby for the next question.
Speaker 1: The next question comes from David Barden with Think of America. Your line is open.
The next question comes from David Barden with Bank of America. Your line is open.
Speaker 6: Hey guys, thanks so much for taking the questions. I really appreciate it. I guess my questions are for you, Hemi. Given that you'll be the new CEO of Dish and a week.
Hey, guys. Thanks, so much for taking my questions I really appreciate it.
I guess my questions are for you Hamid.
Given that youll be the the new CEO of dish in a week.
Speaker 6: I'm gonna bring up the three things because people really want to know what your perspective is on. Issue number one is, this is paying $100 million to extend the time of the option that they have to buy spectrum from.
I'm going to bring up the three things that people really wanted to know what your perspective is on.
Issue number one is.
This is paying $100 million.
To extend the tie in with the option that they have to buy spectrum from.
Speaker 6: T-Mobile in the 800 MHz band and that's $3.6 billion and really no one can figure out how that
T mobile and the 800 megahertz band and Thats $3 6 billion.
Really no one can figure out how that.
Speaker 6: going to happen from a funding perspective. So if you could have an input on that, that'd be great. The second question is from the F's four, this just put up a quarter with less than 100 million of thousand tons.
Could happen from a funding perspective, so if you could have input on that that'd be great. The second question is from the S. Four.
This just put up a quarter with less than $100 million of EBITDA.
Speaker 6: but is now projecting more than two billion of EBITDA for 2024. How do you plan to make that happen? And then the
But he's now projecting more than $2 billion of EBITDA for 2024, how do you plan to make that happen.
And then the third question is.
Speaker 6: You know, this was ideally going to be the fourth facility space mobile player in America. It's been struggling. How are you going to fix it? That's great.
Fish was.
Ideally going to be the fourth facility space mobile player in America.
It's been struggling.
How are you going to fix it that's great. Thank you.
Speaker 10: Thank you. Naturally, I can't answer any of those questions today, even unofficially. I don't have detailed knowledge of any of that yet to the point that I can give you meaningful answers. That's when I clearly understand that liquidity and cash is prime, prime, prime requirement to the business and the concern of the, lenders and equity holders. And I,
Thank you naturally I can't answer any of those questions today.
Even on officially.
Detailed knowledge of any of that yet to the point that I can give you meaningful answers listen I clearly understand that liquidity.
Cash is prime prime prime requirements of the business and a concern of the.
Lenders and equity holders.
Speaker 10: Certainly we'll focus on that, certainly that I do intend to make sure
I certainly wouldn't focus on that certainly.
Do intend to make sure.
Speaker 10: We maximize our use of our capital and not getting that company into deeper need for cash before we can solve the problems and solve the challenges we have. I think there's a number of avenues that we, during the evaluation of the merger that the bankers had identified and that is at hand that I have had the privilege of seeing as a result of the merger documents, that gives us some room.
We maximize our use of capital and not getting the company into.
Deeper need for cash before we can be.
We can solve their problems and solve the challenges we have I think theres a number of avenues.
During the evaluation of the merger that the bankers had identify them yet.
That is at hand.
I have I have had the privilege of seeing as a result of the merger documents.
It gives us some room.
Speaker 10: So it's not without solutions or without even. So certainly that is there, but I can't obviously provide any more detail today. Look, as it comes to being a competitive provider and a market, look, today there is no way to get into a mobile business.
So this is not without solutions OWS. So certainly that is there, but I can obviously provide any more detail today.
Look as it comes to.
Being a competitive provider in the market.
Today, there is no way to get into a mobile business anywhere in the world, particularly in the market as sophisticated as large and as expensive as United States.
Speaker 10: anywhere in the world, particularly in a market as sophisticated as large and as expensive as the United States.
Speaker 10: before you spend billions and billions of dollars ahead of time before you can get your first customer. There's no way. I mean, I've been...
Before you spend billions and billions of dollars ahead of time.
Before you can get your first customer there is no way.
I have been part of mobile business for.
Past 35 years at least going back to the <unk> and <unk> and <unk>, having significant roles in every single one of those and I can tell you that.
Speaker 3: going back to the Mungi and 2G and 3G and having significant roles in every single one of those. And I can tell you that, you know, just the entry point to become as carried.
Hugh.
And just to entry points to become as carriers.
Speaker 10: You gotta have, you know, vast cover is nationwide cover.
You got to have.
Vast coverage nationwide coverage.
Speaker 8: You know, a nation, the size of US, you've got to buy plenty of a spectrum to even be considered as viable.
Our nation decides of U S, you're going to buy plenty of spectrum to even be considered as viable.
Speaker 3: And you know, you know, you incur incredible amount of opax in terms of leases and backhol circuits and energy and maintenance and license fees. And you name it, all of those come in before you can get to first customer. You know, I remember when I was in the Amps business, just a very young engineer, we had three or four sales in the neighborhood and we considered ourselves, you know, completely in business.
And you incur incredible amount of Opex in terms of leases and backhaul circuits in energy and maintenance and license fees and you name. It all of those come in before you can get the first customer I remember when I was in the amps business just the very young engineer, we had three or four sales in our neighborhood.
And we considered ourselves completely in business and we launched our <unk> in the U S. In 13 different markets. Each one of them was just the downtown area and that was acceptable.
Speaker 10: and we launched our 2G in the US in 13 different markets. Each one of them was just a downtown area. And that was acceptable for the consumers at that time. That was a luxury. Today, you need to spend $30 billion before you can start selling the first mobile phone on your own network. So I think it's not surprised, there is no surprise, that...
The consumers at that time that was a luxury today you need to spend $30 billion before you can start selling the first mobile phone on your own network. So I think it is not surprised there is no surprise that.
Speaker 10: You know, any entrance, I venture to guess that in many markets there will never be a new mobile entrance. There won't be. I mean, this may be the last one that enters a big market as a new ground zero entrance. I would venture to guess you're not going to see a new 6G entering any market. The time is passing for
Any entrant.
Venture to guess that in many markets there will never be a new mobile entrants there won't be I mean dish may be the last one that and theres, a big market as a new ground zito entrance.
I would venture to guess Youre not going to see a new <unk> enter into in any market.
The time is passing floor.
Speaker 3: You know, new mobile entrance to come in just because they cost and capital involved in the infrastructure to begin service is so high. This has managed to achieve.
No new mobile entrants to come in just because the cost and capex involved in the infrastructure to begin service you saw dish has managed to achieve that and maybe the last one that actually creates that business and Thats. My intend to go give it my absolute best shot for us to make that work now we have a number of and with dish has a number of.
Speaker 3: It may be the last one that actually creates that business and that's my intent to go, give it my absolute best shot for us to make that work. Now we have a number of, and my dish has a number of, you know, attributes that have not yet been...
Attributes that have not yet been.
Speaker 10: in a consumable way, and that is the 5G infrastructure, which in a consumer world is not as relevant as it comes to more of an enterprise.
Made available.
In a consumable way and that is the <unk> infrastructure, which <unk>.
Consumer World is not as relevant as it comes to more of an enterprise.
Speaker 10: verticals and special type of operations. And that is an opportunity that had of us that we need to focus on and make differentiation in addition to all of the things that Echo start brings in which is global and has relevance when we tie them all together. Hopefully we'll disclose all of that strategy and I will be here speaking to you about how that will work as I put the piece.
Verticals in special.
Of operations in that as an opportunity ahead of us that we need to focus on and make a differentiation. In addition to all of the things that Echostar brings in which is global and has relevance when we tie them altogether, hopefully, we'll disclose all of that strategy.
Be here speaking to you.
About how that will work.
As I put the pieces together, but I am optimistic that.
Speaker 10: But I'm optimistic that the road ahead is much more much brighter than that he might look.
The road ahead is much more.
Much brighter than that he might look.
Speaker 10: having reached this point that all that cost has been in there, all of the expenses in there, but the revenues and other things are yet to come, just by design of a new entrant into a market.
Having reached this point that all of that cost has been in there all of the expenses in there, but the revenues and other things are yet to come just by design of a new entrant into a market.
Speaker 10: Hopefully that gives you a bit of a perspective, from a mindset perspective, but I can't see you any specific on your three areas. Just rest assured that they're registered in my mind and I'm not forgetting about any of that.
Hopefully that gives you a bit of a perspective from a mindset perspective, but I can't give you any specific on your three areas just rest assured that the registered in my mind and I'm not forgetting about any of that.
Speaker 6: Thank you so much to me for your perspective. I really appreciate it and good luck and thank you so much for the time
Thank you so much for your perspective I really appreciate it.
Good luck and thank you so much for the time.
Speaker 1: I show no further questions at this time. I would now like to turn the call back to Dean Manson for closing remarks.
Thank you.
I show no further questions at this time I would now like to turn the call back to Dean Manson for closing remarks.
Speaker 2: Thank you, Michelle. We're now ready to conclude the meeting, and I thank everyone for calling in.
Thank you Michelle.
We're now ready to conclude the meeting and I, thank everyone for calling in.
Yes.
Speaker 1: This concludes today's conference call. Thank you for participating. You may now disconnect. Connect.
This concludes today's conference call. Thank you for participating you may now disconnect.
Sure.
You got it.
Speaker 11: Please have a seat.
[music].
Okay.
Yes.
Okay.
Okay.
Okay.
Okay.
Sure.
Okay.