Is DISH Network Poised to Disrupt the Wireless Service Industry?

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April 25th, 2017 by

DISH Network is known as a premier satellite television and internet provider, but the company is slated to soon play in the wireless service space. The company spent $6.2 billion in a Federal Communication Commission (FCC) auction to acquire wireless spectrum—frequency ranges that are used to transmit data such as music and video to cell phones and televisions—and seems poised to shake up scene that the Big Four (Verizon, T-Mobile, AT&T and Sprint) have traditionally dominated.

DISH’s showing at the FCC auction was second to just T-Mobile, which dropped a whopping $8 billion to secure the most licenses—but that’s not surprising given the company provided service to nearly 72 million users in the fourth quarter of 2016. DISH, which isn’t even involved in providing carrier services yet, now has the assets to hang with the top dogs in the industry. While DISH has officially stated that it plans to use these licenses to build a network for the internet of things, many are skeptical and believe that there is much more in store for the company.

One of the potential outcomes of this spectrum auction is the acquisition of DISH. The company has added a ton of value and is a prime target to be purchased by a major provider like Verizon—which has had previously rumored interest in the satellite giant—or Comcast, another company that plans to launch cell phone service to compete with the giants at some point in 2017.

Not everyone believes this was the smartest move for DISH, as some analysts think the company paid too much for the spectrum. A MoffetNathanson analyst stated that DISH, “have self-evidently chosen to pay more for the spectrum than the companies to whom they could eventually sell that spectrum. The auction leaves them looking more like a builder than a seller.”

Regardless of what happens, DISH is in a very interesting position moving forward. The company is poised to make a big move and could surprise everyone in the near future. It’s a great time to be a customer and a lot of exciting things are certainly in the pipeline, so join up by contacting PES DISH today.

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Based on the average American Customer Satisfaction Index comparison of major TV providers (2010-2015). 2Based on a nationwide study of signal reception by DISH customers.
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