Instead of four big carriers, consumers will need to choose from a list of three names when looking to activate a new phone or port in an existing number soon. At first glance, it might seem like market competition is being reduced as a direct result of the creation of a "New T-Mobile" behemoth, which could prove detrimental to consumer choice and ultimately cause cellular plan rates to go up.
While top Dish executives expect 5G-related expenses of around $10 billion and analyst estimates go far beyond that number, Ergen is taking a baby steps approach, highlighting that the company can figure out the math as it goes, making slow and gradual investments in network rollouts and expansions. For starters, there's $1 billion of equity Dish can rely on, as well as a relatively steady stream of cash coming from the pay-TV division and a shrinking debt load that proves the company is in a pretty good place financially speaking.
Still, there's been a lot of talk about the need for a deep-pocketed partner in the long run, and although the identity of the prospective associate (or associates) remains under wraps, Ergen continues to tout "a lot of third-party interest."
With or without someone like Amazon or Google financially supporting its ambitious plans, Dish is confident its network will be better, "less expensive, less expensive to operate and more flexible" than what "wireless incumbents" currently have going on.
Boost transaction will be completed soon, followed by 5G trial service launch
Before wowing the world with its "Netflix"-style broadband network taking on the "Blockbuster" club composed of Verizon, AT&T, and T-Mobile, Dish needs to close its $1.4 billion acquisition of Boost, the Sprint-owned MVNO (mobile virtual network operator) that will continue to operate on T-Mo's airwaves.
The deal is expected to be sealed as early as June 1 and no later than July 1, potentially allowing Dish to enjoy "owner's economics a year from now." In theory, Dish would be left with almost $1 billion in hand for other wireless expenses this year after the Boost Mobile transaction is completed, but the company only expects to use a fraction of that money due to the coronavirus pandemic.
Still, that should be enough for a 5G network "core" and "trial service" to launch sometime by the end of 2020 in one unnamed US market. It remains to be seen how quickly can Dish expand said service after that, as the company needs to provide a 5G signal covering no less than 70 percent of the country by 2023 or pay the US Treasury significant penalties. That's in theory, of course, because the terms of last year's DOJ deal never considered the economic repercussions of the current national and global health crisis.
Adrian, a mobile technology enthusiast since the Nokia 3310 era, has been a dynamic presence in the tech journalism field, contributing to Android Authority, Digital Trends, and Pocketnow before joining PhoneArena in 2018. His expertise spans across various platforms, with a particular fondness for the diversity of the Android ecosystem. Despite the challenges of balancing full-time parenthood with his work, Adrian's passion for tech trends, running, and movies keeps him energized. His commitment to mid-range smartphones has led to an eclectic collection of devices, saved from personal bankruptcy by his preference for 'adequate' over 'overpriced'.
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