Dish Network recently expressed confidence in meeting its obligation to the FCC of providing 5G coverage to 70% of the US by the end of June. Failing to do so would result in a “voluntary” contribution of $2.2 billion to the regulatory agency. While it is expected that Dish will meet this deadline, concerns are rising about the next deadline due in two years.
Dish was put in this situation by the FCC when it replaced Sprint with the condition of Dish meeting the 5G coverage requirement. To make matters worse, Dish will need to spend billions to blanket rural areas with its 5G signals, which it currently does not have. Dish presently covers 20% of the US with its 5G signals, and after the deadline, it will have until 2025 to cover 75% of the nation. To achieve this, Dish will have to use 35,000 cell towers.
According to a source close to the situation who spoke to The New York Post, Ergen is desperately looking for assets he can sell to finance the 5G network. The source said, “He is trying to sell everything that is non-core and to finance assets that are financeable. The problem is there are only very small things to sell. It’s a drop in the bucket.”
Dish has been attempting to negotiate an extension of the 2025 deadline and is trying to find partners to help finance the network. Blair Levin, a policy analyst at New Street Research, suggests that Dish may agree to an extension of one to two years to avoid spending $2 to $3 billion of capital immediately.
Dish is building a standalone (SA) 5G network that uses a 5G core, unlike other networks that are built over an LTE core. This innovation offers faster data speeds and fulfills all the potential that 5G has to offer. Dish is reportedly open to making three-way mergers to complete its 5G network.
However, the stock market is not impressed with Dish’s efforts. The stock has lost 53% of its value this year and dropped 12% in response to the New York Post story, closing at $6.55 per share, which is well below the 52-week high of $20.35. Dish will need to sell assets, find a partner, or get an extension to meet its 5G coverage requirement. The clock is ticking, and the pressure is on Dish to find a solution.
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Alex Smith is a writer and editor with over 10 years of experience. He has written extensively on a variety of topics, including technology, business, and personal finance. His work has been published in a number of magazines and newspapers, and he is also the author of two books. Alex is passionate about helping people learn and grow, and he believes that writing is a powerful tool for communication and understanding.
