Dish (DISH) Begins Building Visionary Network . . . Sort Of
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Rating Summary:
10 Buy, 20 Hold, 5 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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This morning DISH Network (NASDAQ: DISH) and NTELOS Holdings Corp. (nTelos)(NASDAQ: NTLS) announced that nTelos and DISH have executed a Letter of Intent to pursue a strategic relationship to co-develop a fixed-mobile broadband service within nTelos's coverage territory serving Virginia, West Virginia and portions of Maryland, North Carolina, Pennsylvania, Ohio and Kentucky.
Once complete, the service is expected to give nTelos and DISH customers, many of whom are located in underserved rural communities, access to reliable high-speed Internet, whether at home or on the go.
While the development is interesting, Dish CEO Charlie Ergen clearly hasn't taken its eye off the grand prize, Sprint (Nasdaq: S), a company Dish hopes to acquire despite a competing bid from Softbank.
Commenting on today's development, Wells Fargo analyst Marci Ryvicker said, "Today's announcement DOES NOT mean that DISH is building out a network! Rather it means that DISH has found a partner TO HELP DEVELOP a fixed-mobile broadband service utilizing a wireless signal. In fact, we expect the capital outlay for this project to be relatively immaterial to DISH."
Importantly, nTelos is an exclusive wholesale provider of wireless digital PCS services to Sprint Nextel.
"We view today's announcement positively for DISH as it gives Charlie a head start in the development of a fixed internet-mobile broadband offering should he be successful in acquiring Sprint for a minimal capital outlay," said Ryvicker, adding . . . "This test involves only 500k subs - imagine what Charlie could do with 40MM."
Once complete, the service is expected to give nTelos and DISH customers, many of whom are located in underserved rural communities, access to reliable high-speed Internet, whether at home or on the go.
While the development is interesting, Dish CEO Charlie Ergen clearly hasn't taken its eye off the grand prize, Sprint (Nasdaq: S), a company Dish hopes to acquire despite a competing bid from Softbank.
Commenting on today's development, Wells Fargo analyst Marci Ryvicker said, "Today's announcement DOES NOT mean that DISH is building out a network! Rather it means that DISH has found a partner TO HELP DEVELOP a fixed-mobile broadband service utilizing a wireless signal. In fact, we expect the capital outlay for this project to be relatively immaterial to DISH."
Importantly, nTelos is an exclusive wholesale provider of wireless digital PCS services to Sprint Nextel.
"We view today's announcement positively for DISH as it gives Charlie a head start in the development of a fixed internet-mobile broadband offering should he be successful in acquiring Sprint for a minimal capital outlay," said Ryvicker, adding . . . "This test involves only 500k subs - imagine what Charlie could do with 40MM."
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