Dish Network eyes broadband network, 30 million customers on 4G system, including high-speed Interne

[yaz96]

BUSINESS
Dish Network eyes broadband network
The goal: 30 million customers on 4G system, including high-speed Internet, satellite TV
By Andy Vuong
The Denver Post
POSTED: 08/24/2011 01:00:00 AM MDT

Dish Network wants to build a nationwide mobile-broadband network, revealing details about the strategy behind its recent deals for wireless spectrum in a filing with the Federal Communications Commission.

The network would seek to reach at least 30 million potential customers and use fourth-generation technology in which compatible devices are expected to launch commercially by 2014, according to analysts who reviewed the filing, made late Monday.

Dish plans to offer high-speed Internet access as a stand-alone service and as part of a bundle with its satellite-TV product, said Wells Fargo analyst Marci Ryvicker.

The FCC filing asks the agency to transfer to Dish-spectrum licenses currently assigned to TerreStar Networks, a bankrupt satellite company that offers wholesale wireless voice and Internet services via a hybrid satellite and ground-based network.

Douglas County-based Dish received bankruptcy-court approval to acquire TerreStar for nearly $1.4 billion in July. Dish has agreed to acquire a separate bankrupt wireless-spectrum holder called DBSD.

The filing also asks the FCC to allow Dish to use the spectrum to offer terrestrial-only broadband service. It states that Dish would continue to support TerreStar's hybrid cellphone service as well as offer terrestrial-only service.

"We are excited about the opportunity to put this nationwide spectrum to productive use for competitive and innovative mobile broadband services," Dish Network executive vice president Tom Cullen said in a prepared statement.

Dish said it would use Long Term Evolution Advanced technology. Verizon Wireless and other carriers are building 4G networks based on similar LTE technology.

Blockbuster, which Dish acquired this year, is expected to play a role in the network, Ryvicker said in a research note Tuesday.

Dish specifically notes in the FCC filing that it will use its "bricks-and- mortar network ... to facilitate the deployment of a new service."

Dish chairman Charlie Ergen has said the company would likely partner with an established wireless provider if it were to launch a mobile- broadband service.

A partnership with MetroPCS might make sense because the regional carrier "needs spectrum and has cash to build out the network," said BTIG Research analyst Walter Piecyk.

He said Dish has committed to reach 30 million potential subscribers over six years, basing his estimate on timeline references in the filing.

Specifically, Dish pointed to "buildout principles" in deals involving Sprint, which Piecyk said required the company to reach 15 million potential customers in four years and 30 million within six years.

Dish has about 14 million satellite- TV subscribers.

Andy Vuong: 303-954-1209, avuong@denverpost.com or twitter.com/andyvuong



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[andrewj0781]

Wonder if they'll shot for unlimited service or if you'll have plans you'll have to have.

 

[gadgtfreek]

Id welcome options. My area only has ATT ADSL, and Uverse is nowhere near close to coming.

 

[Laddyboy]

MetroPCS would have to do a lot of buildout as it's primarily a dense population area company at present. I'm in a fairly populous state here in Illinois and it's not available in my area. With all the cell providers going to limited data, apparently even Sprint when they get the iPhone 5 this year, how is all this going to work. Are people really going to pay $100 or more per month just for data service? I get wireless broadband at 4Mbits for $37 per month from a internet provider in my area of rural Illinois. It's cheaper than Verizon/Frontier DSL for me and also faster. I'm using Virgin Mobile with a LG Optimus smartphone for $25 per month for 300 minutes talk and unlimited data and text. Are they going to compete with that (Virgin is now $35 for new subs)? Or with the Verizon/ATT plans costing $100 or so with data limits? I don't want to be Don Downer and I hope they can succeed, but based on Dish's past efforts I have real doubts of them accomplishing anything on the cheap like they try to do. They can't even get a Sling extender out the door after buying the company and announcing the product a couple years ago. I just wouldn't get my hopes up. I hope to be proven humbly wrong, 'cause that would make me happy.

 

[riffjim4069]

30 million customers on 4G by 2014? Bahahaha! I just had to laugh after reading this "News" from the Dish Network shills. Too funny!

Hmmm...let's see DISH/SATS have been buying failed (i.e., bankrupt) companies as part of their strategy to go after new markets. Well, at least they aren't doing nothing. Anyway, right now their video business is dying, much like the landline phone market, because the video market is saturated and so many others are doing it better and cheaper - mostly through offering discounted bundles and superior technology (such as FiOS). And let's not forget IPTV delivered content which is getting better all the time.

I'm sorry, but Dish is a day late and a dollar short, and their business strategy (parnering with MetroPCS and/or Sprint) is questionable and will require them to buy the farm on this venture. My prediction is that Verizon and AT&T will continue to grown all their markets: wireless, Internet and video, with as many as 15M combined hard-wired video customers in 2014; I also predict that when Verizon and AT&T LTE launches are in full-swing, they will be gobble up former D* and E* video customers faster than the Dish Network shills drink Kool-Aid.

I wish Dish/SATS well, but they are entering a market with no experience (Okay, I guess MetroiPCS and Sprint may count for something if they are willing to work with Dish) and will be taking on the big-boys with deep-pockets, who have experience and a business plan. Good luck with that 30-million 4G customer nonsense...

 

[skyviewmark]

By 2014 when Dish gets 4G service going, Everyone else will be offering 10G. Dish always seems to be one step behind..

 

[CK SatGuy]

30 million customers on 4G by 2014? Bahahaha! I just had to laugh after reading this "News" from the Dish Network shills. Too funny!

Hmmm...let's see DISH/SATS have been buying failed (i.e., bankrupt) companies as part of their strategy to go after new markets. Well, at least they aren't doing nothing. Anyway, right now their video business is dying, much like the landline phone market, because the video market is saturated and so many others are doing it better and cheaper - mostly through offering discounted bundles and superior technology (such as FiOS). And let's not forget IPTV delivered content which is getting better all the time.

I'm sorry, but Dish is a day late and a dollar short, and their business strategy (parnering with MetroPCS and/or Sprint) is questionable and will require them to buy the farm on this venture. My prediction is that Verizon and AT&T will continue to grown all their markets: wireless, Internet and video, with as many as 15M combined hard-wired video customers in 2014; I also predict that when Verizon and AT&T LTE launches are in full-swing, they will be gobble up former D* and E* video customers faster than the Dish Network shills drink Kool-Aid.

I wish Dish/SATS well, but they are entering a market with no experience (Okay, I guess MetroiPCS and Sprint may count for something if they are willing to work with Dish) and will be taking on the big-boys with deep-pockets, who have experience and a business plan. Good luck with that 30-million 4G customer nonsense...

I understand you point, but I'm going to disagree and here's why. Dish is building their network based on the LTE Advanced standard which is literally suppose to be 100 times faster than what ATT/Verizon have right now so unless those guys upgrade to LTE Advanced, I think it's possible that Dish could get a whole lot more than 30 million 4G subs by 2014-2015 because most of them would be coming from ATT/Verizon and they'll be switching to a true 4G network.

 

[tedb3rd]

If they don't have that many 4G subscribers, they will just change the wording of the press release to, "soon."

 

[Scott Greczkowski]

It was over a year ago I predicted this... good to see it might come true...

More surprises to come. The buying spree is not over.

 

[Laddyboy]

I understand you point, but I'm going to disagree and here's why. Dish is building their network based on the LTE Advanced standard which is literally suppose to be 100 times faster than what ATT/Verizon have right now so unless those guys upgrade to LTE Advanced, I think it's possible that Dish could get a whole lot more than 30 million 4G subs by 2014-2015 because most of them would be coming from ATT/Verizon and they'll be switching to a true 4G network.

I think you're assuming ATT and Verizon aren't also going to use LTE Advanced. The current LTE rollout in the bigger cities is just to get started as LTE Advanced isn't quite worked out hardware-wise from what I understand. I'm sure by 2013 or 2014, ATT, Verizon and Sprint will all be on the same bandwagon for wireless internet assuming a better technology isn't already proven and available by then.

 

[CK SatGuy]

I think you're assuming ATT and Verizon aren't also going to use LTE Advanced. The current LTE rollout in the bigger cities is just to get started as LTE Advanced isn't quite worked out hardware-wise from what I understand. I'm sure by 2013 or 2014, ATT, Verizon and Sprint will all be on the same bandwagon for wireless internet assuming a better technology isn't already proven and available by then.

It's going to take until about 2013-2014 for ATT/Verizon to completely roll out their current LTE networks, which do not use LTE Advanced. If they wanted to use LTE advanced, they should have done that from the get go. After ATT/Verizon finish their rollouts for their current LTE Networks, it'll take an additional 2-3 years to upgrade that to LTE advanced so we might not see that from them until around 2016. By then Dish would already be in the game with their LTE Advanced network and their 30 Million+ subs.

 

[Stargazer]

AT&T/Verizon has more money and more equipped to upgrade to LTE Advanced than Dish Network with the infrastructure and experience that they have. After doing all those upgrades are they willing to go around to upgrade all the markets again already though when they are not even done with the current upgrades yet? Maybe this is where Dish Network would have the leg up on them if they can build their network out with the LTE Advanced sooner? Are they ready to put out the big big money to do so or can they find a partner that can offer them service areas comparable to AT&T/Verizon? Sprint may be the solution they need to achieve this.

 

[TG2]

With the piss poor support that dish has now.. do you REALLY see them having anything better in the wireless spectrum?

Who wants wireless service that you have to power off randomly to "fix" firmware issues?
Who wants to contact Dish Support with valid issues (ie. DishOnline - press play on DVR item, and it starts on TV1) only to have them lie, pretend its not their crappy code, etc

etc
etc
etc

Unless Dish gets better with their support, is more open with faults and gives real resolution times, they'll not be a good option. And cellular? I could just see the FCC fines for failure to maintain an SLA ... the only saving grace for their DishOnline & Sling Adapter services ... that they don't offer an SLA.

 

[JeffMo]

Dish is looking for more "spectrum" and wants to be a "player" in mobile broadband but fails to provide sufficient bandwidth to adequately service their existing satellite customers with HD channels and RSN HD coverage. Current satellite customers provide cash for another Dish foray into yet another acquisition while their core business continues to leave a lot to be desired. Give me a break.

 

[mike123abc]

I do not see Dish in the cell phone business. The only way I see them in it is as a reseller of an existing phone company (like Virgin Mobile resells Sprint).

What Dish does have is a large chunck of spectrum which could give it an advantage over Netflix, especially in rural areas.

What if Dish could offer streaming movies without you having to have an internet connection? Rural areas struggling with .5 mbit connections or less DSL if they are lucky could stream movies. Your Dish DVR could download shows on demand. Perhaps a minute or two delay for buffering, but it would be a full DVR experience with the skip buttons working since they could store it on the DVR disk.

 

[whitewolf8214]

It was over a year ago I predicted this... good to see it might come true...

More surprises to come. The buying spree is not over.

any surprises you can mention scott? if not thats ok and ty if you do

 

[hildred]

yes what speed will it have 6 or more and price

 

[catnap1972]

Wonder if they'll shot for unlimited service or if you'll have plans you'll have to have.

Pretty much ZERO chance it'll be unlimited

 

[vodad]

30 million customers on 4G by 2014? Bahahaha! I just had to laugh after reading this "News" from the Dish Network shills. Too funny!

The problem is, they never said they would have 30 million customers, they said they could reach a potential 30 million subscribers.

To do that all they need is service in the top 20 cities and they are covered.



Their partnership would not be with sprint for 4g anyway, it would have to be with Clear as they handle Sprints 4g coverage now.

I really see dish going the route of Clear and offering 4g coverage not only for cell phones, but also strictly data services like Clear does now.

 

[CK SatGuy]

Their partnership would not be with sprint for 4g anyway, it would have to be with Clear as they handle Sprints 4g coverage now.

I really see dish going the route of Clear and offering 4g coverage not only for cell phones, but also strictly data services like Clear does now.

I don't see Dish partnering with Clear. They practically have no money left and there seems to be stronger rumors everyday that Sprint is gonna wind up buying them.