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DISH Network Faces FCC Query Related to Wireless Network
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DISH Network is facing a host of questions from the Federal Communications Commission (FCC) related to the wireless network system that the company is supposed to build by 2020.
The network is expected to use up part of its accumulated licensed airwaves or spectrum of around $40 billion, which the company will lose if it fails to complete the network. The licenses will either be terminated or returned to the FCC if the final deadlines are not met.
Notably, the company has invested $11 billion to acquire a portfolio of 700 MHz, 600 MHz, AWS-4 Licenses (40 MHz) and H Block licenses. The company has notified the FCC about its plan to deploy a next-generation 5G-capable network, focused on supporting narrowband Internet of Things (IoT) technology.
Deadline Miss Doesn’t Bode Well for DISH
DISH Network has already missed the interim construction deadlines for AWS-4 licenses, 700 MHz Lower E Block licenses as well as H Block licenses. Currently, the company faces a deadline for the completion of the network, which has been advanced by a year to 2020.
Moreover, the company is facing strict vigilance from the FCC with the latter demanding a detailed report of DISH Network’s build out plans.
The FCC has asked a wide range of questions starting from the challenges faced in the construction of the network, the services the company intends to provide related to each spectrum, information on the industry standard technology used, if any; description of the network architecture and others.
Furthermore, DISH has failed to strike any deal with wireless operators like T-Mobile US Inc. (TMUS - Free Report) and Sprint Corp. (S - Free Report) to deploy a nationwide wireless network, which would have enabled the company to combine rather than build a new network. This is a major headwind.
Notably, these ongoing headwinds have hurt DISH Network’s share price performance. The stock has lost 33.4% on a year-to-date basis, underperforming the industry’s decline of 14.3%.
DISH Planning Two-Phase Build Out
DISH mentioned its plans to build up the system in two phases. The initial phase targeted for 2020 is a $1 billion IoT network, enabling connections between devices and sensors.
The second one will be a 5G, voice or data network worth $10 billion.
Management is optimistic about discussing the prospects of network development with the FCC and has vowed to keep the latter updated with the progress of its IoT network.
We believe that efficient execution of the disclosed plans will be a positive for the company’s extensive portfolio of spectrum. The network, if built on time, will be beneficial for this Zacks Rank #2 (Buy) stock’s top line in the long run.
The company is expected to release its second-quarter 2018 earnings on Aug 8.
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DISH Network Faces FCC Query Related to Wireless Network
DISH Network is facing a host of questions from the Federal Communications Commission (FCC) related to the wireless network system that the company is supposed to build by 2020.
The network is expected to use up part of its accumulated licensed airwaves or spectrum of around $40 billion, which the company will lose if it fails to complete the network. The licenses will either be terminated or returned to the FCC if the final deadlines are not met.
Notably, the company has invested $11 billion to acquire a portfolio of 700 MHz, 600 MHz, AWS-4 Licenses (40 MHz) and H Block licenses. The company has notified the FCC about its plan to deploy a next-generation 5G-capable network, focused on supporting narrowband Internet of Things (IoT) technology.
Deadline Miss Doesn’t Bode Well for DISH
DISH Network has already missed the interim construction deadlines for AWS-4 licenses, 700 MHz Lower E Block licenses as well as H Block licenses. Currently, the company faces a deadline for the completion of the network, which has been advanced by a year to 2020.
Moreover, the company is facing strict vigilance from the FCC with the latter demanding a detailed report of DISH Network’s build out plans.
The FCC has asked a wide range of questions starting from the challenges faced in the construction of the network, the services the company intends to provide related to each spectrum, information on the industry standard technology used, if any; description of the network architecture and others.
Furthermore, DISH has failed to strike any deal with wireless operators like T-Mobile US Inc. (TMUS - Free Report) and Sprint Corp. (S - Free Report) to deploy a nationwide wireless network, which would have enabled the company to combine rather than build a new network. This is a major headwind.
Notably, these ongoing headwinds have hurt DISH Network’s share price performance. The stock has lost 33.4% on a year-to-date basis, underperforming the industry’s decline of 14.3%.
DISH Planning Two-Phase Build Out
DISH mentioned its plans to build up the system in two phases. The initial phase targeted for 2020 is a $1 billion IoT network, enabling connections between devices and sensors.
The second one will be a 5G, voice or data network worth $10 billion.
Management is optimistic about discussing the prospects of network development with the FCC and has vowed to keep the latter updated with the progress of its IoT network.
We believe that efficient execution of the disclosed plans will be a positive for the company’s extensive portfolio of spectrum. The network, if built on time, will be beneficial for this Zacks Rank #2 (Buy) stock’s top line in the long run.
Another Stock to Consider
Another top-ranked stock in the sector is Liberty Media Corporation (FWONA - Free Report) , sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.
The company is expected to release its second-quarter 2018 earnings on Aug 8.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
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