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How Dish Network Is Positioned as It Transitions to Connectivity

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Part 12
How Dish Network Is Positioned as It Transitions to Connectivity PART 12 OF 19

How Dish Views the Entry of Technology Players into the Connectivity Sector

Entry of technology companies into the connectivity business

Technology giants Google (GOOG), Facebook (FB), Amazon (AMZN) and Microsoft (MSFT) are increasingly experimenting with connectivity. Google is working to provide low-cost, high-quality Internet access to consumers through Project Loon, while Amazon is looking for faster delivery of its products through drones.

Dish Network (DISH) stated during its 2Q17 earnings call that spectrum was a core part of its connectivity projects, whether it was licensed or unlicensed. In that respect, the company believes that the four primary telecommunication companies—AT&T (T), T-Mobile (TMUS), Verizon Communications (VZ), and Sprint (S)—are increasingly well positioned.

How Dish Views the Entry of Technology Players into the Connectivity Sector

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Dish added that this trend of technology companies venturing into connectivity could also bode well for Dish, considering its spectrum holdings. Dish noted that these technology companies could be acquiring wireless companies to expand their connectivity operations.

Facebook is also exploring connectivity

Facebook (FB) is also working to give its users faster, better, and more cost-effective Internet access through programs like Express Wi-Fi and Aquila Internet drone. Earlier this year, Facebook launched its Express Wi-Fi service in India (EPI) and intends to roll out this service around the world. Facebook intends to deploy its Aquila Internet drone to beam high-speed Internet to remote areas where people are still isolated from the Internet economy.

According to a PricewaterhouseCoopers report, 54.3% of mobile Internet subscribers could be on high-speed Internet by 2020, up from 25.7% in 2015. This trend indicates a robust demand for faster Internet access.

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