Did Charlie Ergen Make A Bad Wireless Bet? (1 Viewer)

bluegras

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In comments to adoring satellite dealers in May 2012 in Orlando during his company’s annual trade show, Dish Network Chairman Charles W. Ergen outlined his vision for what type of service his company planned to offer using the wireless spectrum it has been buying.

Dish Network, he said, had to offer six types of service in order to compete with larger companies and join, in his words, the “big leagues” of service providers. They were mobile video, data and phone services (like the four major cellular services sell today); home data and phone services via wireless spectrum (instead of landlines); and Dish Network’s DBS service.

http://www.tvnewscheck.com/article/102667/did-charlie-ergen-make-a-bad-wireless-bet
 

MikeD-C05

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Fastest way to use that $15 billion worth of spectrum is to use it like they said for Samsung , hospitals, schools for small network that links them and their appliances etc. I agree Charlie needs to save face and he will never relinquish all control over his companies to any other person. That is why he hasn't successfully been able to partner with anyone for any length of time. Microsoft was a big partnership with the original webtv/dishplayer. That turned out poorly for all concerned. He simply does not play well with others and only HE can run anything. So I see no cell phone companies that will partner with DISH unless they are prepared for a total takeover of their company by Charlie: His way or the Highway.
 
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Juan

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Fastest way to use that $15 billion worth of spectrum is to use it like they said for Samsung , hospitals, schools for small network that links them and their appliances etc. I agree Charlie needs to save face and he will never relinquish all control over his companies to any other person. That is why he hasn't successfully been able to partner with anyone for any length of time. Microsoft was a big partnership with the original webtv/dishplayer. That turned out poorly for all concerned. He simply does not play well with others and only HE can run anything. So I see no cell phone companies that will partner with DISH unless they are prepared for a total takeover of their company by Charlie: His way or the Highway.
There is only "x" amount of usable spectrum available..either the FCC takes it back or Charlie eventually has a gold mine

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JosephB

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Charlie very obviously thought he was going to either sell or buy another wireless company. Now, he's coming up against FCC deadlines and has to do something, and he's either pissed off or let slip away any potential targets

If he truly is insisting on running whatever comes out of it, he's going to have a bad time. He should just suck it up, sell to T-Mobile or Verizon, and go retire on a beach. He's not going to be the Steve Jobs of wireless services, he's had his one big hit.
 
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Claude Greiner

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Fastest way to use that $15 billion worth of spectrum is to use it like they said for Samsung , hospitals, schools for small network that links them and their appliances etc. I agree Charlie needs to save face and he will never relinquish all control over his companies to any other person. That is why he hasn't successfully been able to partner with anyone for any length of time. Microsoft was a big partnership with the original webtv/dishplayer. That turned out poorly for all concerned. He simply does not play well with others and only HE can run anything. So I see no cell phone companies that will partner with DISH unless they are prepared for a total takeover of their company by Charlie: His way or the Highway.

You said it better than me.

This is ultimately what will bring the entire company down
 

DishSubLA

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Dish is SECRETIVE, so we don't really know how far along Dish is on its build-out of spectrum, but some test markets for sure and working networks already. Ergen seemed to ALWAYS have a "go it alone plan" as a last resort but preferred to work with a partner, and presumably, share costs. Dish just took on a $1 billion debt that Dish does not need--UNLESS it were going forward with a build out. Otherwise, Dish would have sold that spectrum. IMHO, Ergen got the spectrum because he NEEDS it and has a plan, but it is always wiser to share costs whenever possible, but the time has come for Dish to move forward alone, at least for now because this just makes Dish MORE attractive to potential buyers. Of course we will wait as long as it takes to share the cost, but at some point near the deadline, Ergen knew he would have to move forward on his own, and implement that plan. None of this precludes partners and strategic alliances coming in a few months to a few years before 2020, even Dish being purchased by another company before 2020.

Ergen made clear in his remarks at the last quarterly conference call, that Dish, "will meet the deadlines." They are "focused" on that. Keep in mind that serving 40% in a "certain region" is a fine relative milestone that can be achieved at the ease of any company choosing to build out in just the right "region" where such numbers are not a challenge. Then there is the next deadline beyond 2020, which Dish could also meet, however, let's remember, these companies with spectrum (and all other sorts in dealing with the FCC and other government agencies) get extensions, waivers, etc., etc., etc., from the FCC and all the what not ALL THE TIME, at least so long as there is clear evidence that they are in the process of a build out.

There is nothing for Dish to worry about because $1 billion debt is chump change even for a company as small as Dish, and just moving forward on the build out just enhances Dish's value to potential buyers. The writer of the article, like MOST such people in the business press, is pretty ignorant or consciously omits facts to suit his purpose for the article: most often these business press people are mouthpieces for the companies and interests that have co-opted them to make either positive or negative remarks that can affect a company, negotiations, public image, or even a market as investors foolishly believe everything they print that is favorable or negative about whatever.

Bottom line: there is no news here and no one is gonna lose their spectrum.
 
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Juan

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Dish is SECRETIVE, so we don't really know how far along Dish is on its build-out of spectrum, but some test markets for sure and working networks already. Ergen seemed to ALWAYS have a "go it alone plan" as a last resort but preferred to work with a partner, and presumably, share costs. Dish just took on a $1 billion debt that Dish does not need--UNLESS it were going forward with a build out. Otherwise, Dish would have sold that spectrum. IMHO, Ergen got the spectrum because he NEEDS it and has a plan, but it is always wiser to share costs whenever possible, but the time has come for Dish to move forward alone, at least for now because this just makes Dish MORE attractive to potential buyers. Of course we will wait as long as it takes to share the cost, but at some point near the deadline, Ergen knew he would have to move forward on his own, and implement that plan. None of this precludes partners and strategic alliances coming in a few months to a few years before 2020, even Dish being purchased by another company before 2020.

Ergen made clear in his remarks at the last quarterly conference call, that Dish, "will meet the deadlines." They are "focused" on that. Keep in mind that serving 40% in a "certain region" is a fine relative milestone that can be achieved at the ease of any company choosing to build out in just the right "region" where such numbers are not a challenge. Then there is the next deadline beyond 2020, which Dish could also meet, however, let's remember, these companies with spectrum (and all other sorts in dealing with the FCC and other government agencies) get extensions, waivers, etc., etc., etc., from the FCC and all the what not ALL THE TIME, at least so long as there is clear evidence that they are in the process of a build out.

There is nothing for Dish to worry about because $1 billion debt is chump change even for a company as small as Dish, and just moving forward on the build out just enhances Dish's value to potential buyers. The writer of the article, like MOST such people in the business press, is pretty ignorant or consciously omits facts to suit his purpose for the article: most often these business press people are mouthpieces for the companies and interests that have co-opted them to make either positive or negative remarks that can affect a company, negotiations, public image, or even a market as investors foolishly believe everything they print that is favorable or negative about whatever.

Bottom line: there is no news here and no one is gonna lose their spectrum.
Hard to be secretive when every step of the build out requires FCC approval..you just can't stick an antenna on a cell tower

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Bruce

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Hard to be secretive when every step of the build out requires FCC approval..you just can't stick an antenna on a cell tower

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plus all the companies that own the cell towers would have to report it to share holders if Dish leased space from them.


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navychop

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plus all the companies that own the cell towers would have to report it to share holders if Dish leased space from them.


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Why? They're in the business of leasing space. Why would it matter if it was Dish or Joes bar and grill?
 

Bruce

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Why? They're in the business of leasing space. Why would it matter if it was Dish or Joes bar and grill?

I think you are mis-understanding my post, it does not matter who leases the space but if Dish was doing so we would know about it.
 
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