ENGLEWOOD, Colo., July 26, 2019 /PRNewswire/ -- DISH Network
will enter the U.S. wireless market as the fourth nationwide
facilities-based network competitor. DISH has reached agreements
with the Antitrust Division of the U.S. Department of Justice,
T-Mobile US, Inc. and Sprint Corporation to complete this
transformative transaction. Additionally, DISH has committed to the
Federal Communications Commission that DISH will deploy a
facilities-based 5G broadband network capable of serving 70 percent
of the U.S. population by June 2023,
and has requested that its spectrum licenses be modified to reflect
those commitments.
Following completion of the merger of Sprint and T-Mobile, DISH
will:
- Acquire Sprint's prepaid businesses and customers, including
Boost Mobile, Virgin Mobile and the Sprint-branded prepaid
service.
- Acquire 14 MHz of Sprint's nationwide 800 MHz spectrum.
- Access the New T-Mobile network for seven years, including the
ability to serve DISH customers seamlessly between T-Mobile's
nationwide network and DISH's new independent 5G broadband
network.
"These developments are the fulfillment of more than two
decades' worth of work and more than $21
billion in spectrum investments intended to transform DISH
into a connectivity company," said DISH Co-Founder and Chairman
Charlie Ergen. "Taken together,
these opportunities will set the stage for our entry as the
nation's fourth facilities-based wireless competitor and accelerate
our work to launch the country's first standalone 5G broadband
network."
On the broader work of both the Federal Communications
Commission and the U.S. Department of Justice in facilitating
competition in the U.S. wireless industry, Ergen said:
"The FCC and the DOJ are to be credited for laying the
groundwork for an innovative 5G wireless ecosystem that will
introduce new opportunities to American consumers and businesses,
while enhancing competition in the wireless industry."
DISH's proposed asset acquisitions from Sprint are valued at
approximately $5 billion, including a
$1.4 billion purchase of Sprint's
prepaid businesses, and a $3.6
billion agreement to purchase Sprint's nationwide 800 MHz
wireless spectrum. The spectrum purchase is expected to be
completed three years after the closing of the acquisition of the
prepaid businesses.
"We've been here before," said Ergen. "When we entered pay-TV
with the launch of our first satellite in 1995, we faced entrenched
cable monopolies, and our direct competitor was owned by one of the
largest industrial corporations in the world. As a new entrant,
DISH encountered many skeptics who questioned our ability to
succeed. But, customers loved the disruption we brought to the
marketplace with innovations such as a 100-percent
digital experience, local-into-local broadcast, the DVR and
ad-skipping. Our substantial investments, constant innovation,
aggressive pricing and commitment to the customer led us to become
the third largest pay-TV provider. As we enter the wireless
business, we will again serve customers by disrupting incumbents
and their legacy networks, this time with the nation's first
standalone 5G broadband network."
ADDITIONAL DETAILS
The transactions are subject to customary conditions including
the closing of the Sprint and T-Mobile merger, government
approvals, and confirmation that DISH is able to provision
customers on the New T-Mobile network. Closing is expected within
three months following the completion of the Sprint and T-Mobile
merger.
The prepaid businesses, including Boost Mobile, serve
approximately 9.3 million customers in all 50 states and
Puerto Rico. At close, Sprint's
prepaid businesses and customers will immediately move to DISH, as
will the more than 400 employees and nationwide
independent retail network that supports more than 7,500
retail outlets.
DISH will activate all new wireless customers on the New
T-Mobile network. Existing prepaid customers will be supported on
the Sprint legacy network and will eventually transition to the New
T-Mobile network.
Once DISH starts deploying its own facilities-based
infrastructure, DISH's wireless customers will be able to
seamlessly access the New T-Mobile network in areas where DISH has
yet to deploy its own facilities. This Infrastructure MNO
arrangement is part of the Master Network Services Agreement
between the parties.
The 800 MHz nationwide spectrum adds to DISH's existing 600 MHz
and 700 MHz low-band holdings. The low-band portfolio, well suited
for wide geographic coverage and in-building penetration,
complements DISH's AWS-4 and AWS H Block mid-band offerings, which
promise high data capacity potential with narrower operating
range.
DISH has committed to new buildout schedules associated with the
company's 600 MHz, AWS-4, 700 MHz E Block and AWS H Block licenses.
In addition, DISH has committed to deploy 5G Broadband Service
utilizing those licenses.
The new commitments require DISH to use its spectrum to deploy a
nationwide 5G broadband network covering at least 70 percent of the
U.S. population by June 14,
2023. If DISH fails to meet its 5G deployment deadlines, DISH
will make voluntary contributions to the U.S. Treasury of up to
$2.2 billion.
Additionally, DISH and T-Mobile have committed to negotiate the
leasing of DISH's 600 MHz spectrum to T-Mobile for a transitional
period of time.
The arrangements also provide DISH the option to acquire certain
tower, network equipment and retail assets that are being
decommissioned as part of the Sprint and T-Mobile integration
process.
Sullivan & Cromwell LLP acted as lead legal counsel to
DISH.
About DISH
DISH Network Corporation is a connectivity company. Since 1980, it
has served as a disruptive force, driving innovation and value on
behalf of consumers. Through its subsidiaries, the company provides
television entertainment and award-winning technology to millions
of customers with its satellite DISH TV and streaming Sling TV
services. Through its strategic spectrum portfolio and other
assets, DISH is poised to enter the wireless market as a
facilities-based provider of wireless services with a nationwide
consumer offering and development of the first standalone 5G
broadband network in the U.S. DISH's OnTech Smart Services brand
offers in-home installation of connected home devices and
entertainment solutions. DISH Media serves as the company's
advertising sales group delivering targeted advertising solutions.
DISH Network Corporation (NASDAQ: DISH) is a Fortune 250
company.
For company information, visit about.dish.com
Subscribe to DISH email alerts: http://about.dish.com/alerts
Follow @DISHNews on Twitter: http://www.twitter.com/DISHNews
Cautionary Statement Concerning Forward-Looking
Statements
Certain statements contained herein may constitute "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995. Such forward-looking statements include
statements about the benefits of the transaction, including future
financial and operating results and DISH Network Corporation's
plans, objectives, expectations and intentions, and other
statements that are not historical facts. Such forward-looking
statements involve known and unknown risks, uncertainties and other
factors that may cause the actual results, performance or
achievements of DISH Network Corporation to be materially different
from any future results, performance or achievements expressed or
implied by such forward-looking statements. More information about
such risks, uncertainties and other factors is set forth in DISH
Network Corporation's Disclosure Regarding Forward-Looking
Statements included in its recent filings with the Securities and
Exchange Commission (the "SEC"), including its annual report on
Form 10-K for the year ended December 31,
2018 and any subsequent quarterly reports on Form 10-Q.
Risks and uncertainties relating to the proposed transaction
include, but are not limited to, the possibility that the
transaction will not be completed, failure to obtain necessary
regulatory approvals or to satisfy any of the other conditions to
the transaction, adverse effects on the market price of DISH
Network Corporation's common stock, adverse effects on DISH Network
Corporation's operating results for any reason, including, without
limitation, because of a failure to complete the transaction,
failure to realize the expected benefits of the transaction,
significant transaction costs and/or unknown liabilities and
general economic and business conditions that affect DISH Network
Corporation following the transaction. The forward-looking
statements speak only as of the date made, and DISH Network
Corporation expressly disclaims any obligation to update these
forward-looking statements. Nothing herein shall be deemed to be a
forecast, projection or estimate of the future financial
performance of DISH Network Corporation following the completion of
the transaction.
View original content to download
multimedia:http://www.prnewswire.com/news-releases/dish-to-become-national-facilities-based-wireless-carrier-300891740.html
SOURCE DISH Network Corporation