Dish Network, headquartered in Englewood, has accomplished an impressive feat. In just three years, it built a state-of-the-art 5G cellular network that covers over 240 million U.S. residents, all while spending significantly less than its competitors. However, the company faces a critical challenge of attracting customers to its new network in a fiercely competitive market. Building the network was one thing, but acquiring subscribers is another. Roy Chua, an industry analyst and principal at AvidThink, acknowledges Dish’s technological achievement but emphasizes the need for subscribers.
Dish Wireless recently made a move in the right direction by targeting the 150 million members of Amazon Prime with its monthly cellular service, Boost Infinite. Prime members can order a discounted SIM card kit for $20, with unlimited talk, text, and data available for $25 per month. While the data does get throttled after 30 gigabytes, it still offers more data than most people typically use. The challenge for Dish now is convincing people to join its untested network, despite the competitive pricing.
Dish Wireless’s acquisition of Boost Mobile, as a regulatory condition of the T-Mobile and Sprint merger, gave it access to nearly 8 million prepaid customers. Boost Infinite, the newer monthly plan offering, is what Dish is looking to expand. Dish primarily relies on the existing networks of T-Mobile and AT&T to carry cellular traffic as a Mobile Virtual Network Operator or MVNO. To fully capitalize on its investment and the potential of its new technology, Dish Wireless needs to activate its network and migrate subscribers to its own infrastructure.
Getting consumers to trust and switch to an untested network, even one that is cutting-edge, will not be easy. Establishing a strong brand identity may require a costly marketing campaign similar to what Ryan Reynolds has done with Mint Mobile. Dano from Light Reading also points out that Dish faces fierce competition not only from major carriers like AT&T, T-Mobile, and Verizon, but also from other companies like Google Fi Wireless, Mint, and Comcast.
The availability of compatible devices is another challenge for Dish. Most older mobile devices cannot handle the massive amount of spectrum Dish acquired over the years. While manufacturers are starting to release more compatible devices, options are still limited. Dish Wireless plans to offer more device options in the coming months.
Dish Wireless’s collaboration with Amazon to target Amazon Prime members was a smart move, but it remains to be seen how successful it will be. Dish sees itself as a systems integrator, working with partners like Cisco, Oracle, VMware, and Intel to expedite its network build-out. Its new network is based on Open RAN architecture, emphasizing software over hardware and utilizing Amazon Web Services for cloud-based hosting.
Competing on price alone may not be sufficient for Dish Wireless. It aims to differentiate itself through the services and features it can offer via its 5G network. The openness of its network allows outside developers to bring innovative applications to the table. While most applications may be focused on the commercial side, consumers could also benefit from unique features that make Boost stand out.
The success or failure of Dish’s new network is crucial for the metro Denver economy and Colorado’s telecommunications industry. Dish’s wireless division employs over 2,000 people in the metro area and is actively recruiting for more positions. Many Dish partners have also established operations in the region, contributing to its wireless expertise.
However, Wall Street remains skeptical about Dish’s prospects. The stock price has been declining, reflecting doubts about Dish’s ability to attract cellular customers and cope with its substantial debt burden. Dish Network spent $25 billion on wireless spectrum acquisitions, leaving $21 billion in debt on its balance sheet. The company’s depressed stock value makes it challenging to issue new equity and borrow additional funds at reasonable rates.
Despite these challenges, Dish Wireless has made significant progress in building its 5G network. The company now needs to focus on acquiring customers and differentiating itself in a crowded market to secure its future and support the local economy.