How Dish Network Is Positioned as It Transitions to Connectivity

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Part 8
How Dish Network Is Positioned as It Transitions to Connectivity PART 8 OF 19

How Dish Network Views the Wireless Industry

Dish thinks the wireless industry could consolidate

Dish Network (DISH) has not entirely ruled out partnering with another company for its wireless business over the long term. Dish stated during its 2Q17 earnings call that the rise in its wireless business has been driven by the increase in the consumption of mobile data.

Dish noted that the wireless industry is dominated by four large telecommunication companies—AT&T (T), T-Mobile (TMUS), Verizon Communications (VZ), and Sprint (S). Dish added that the new entrants in the wireless industry could lead to a consolidation that could trim the number of big wireless players from four to three incumbents.

How Dish Network Views the Wireless Industry

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Dish noted during an earlier earnings call that it would consider supporting or opposing such consolidation trends based on the benefit to its customers or how it would affect its competition.

Dish added that while the four telecom companies are adopting different types of strategies for their wireless businesses, Dish plans to focus on the connectivity needs of different types of users. Dish also plans to determine how its assets can best meet those requirements and at the same time, maximize the returns in the business.

Telecommunication companies are venturing into the cable industry

Recently, telecommunication companies have been exploring diversification in the media industry through acquisitions. For example, AT&T’s (T) proposed acquisition of Time Warner (TWX) allows AT&T to look at additional revenue streams through media acquisitions. competition has intensified in the traditional wireless business, which has led to these industry shifts.

AT&T is looking at acquiring Time Warner to gain access to its vast library of content that, combined with AT&T’s distribution business, could result in the effective monetization of content.


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