Dish Network Enters Into Strategic Network Services Agreement With AT&T
July 19, 2021 – Dish Network Corporation has entered into a 10-year strategic Network Services Agreement (NSA) with AT&T which will allow customers of Dish’s retail wireless brands to connect to AT&T’s wireless network.[1]
Specifically, the terms of the agreement make AT&T the primary network services partner for Dish MVNO customers (Boost, Ting, and Republic Wireless):
Subject to the terms and limitations of the NSA, AT&T will provide DISH with mobile wireless voice, data and messaging services in all U.S. geographic areas where AT&T or any AT&T affiliate provide such services or where AT&T or any AT&T affiliate has the right to use another wireless service provider’s network and is authorized to extend such right to DISH. The NSA also provides DISH’s retail wireless customers with voice and data roaming services throughout the U.S. on the AT&T network and access to AT&T’s network, even within the markets where DISH is deploying its own 5G network.[2]
It provides AT&T with use of Dish’s spectrum in various markets:
The NSA also provides an avenue for AT&T to deploy portions of DISH’s spectrum to support DISH customers on the AT&T network, by allowing AT&T the right, but not the obligation, to request to use portions of DISH’s spectrum in different markets for an agreed upon period of time, subject to certain terms and conditions.
Also, pursuant to other terms and conditions, AT&T will provide transport and roaming services to support DISH’s 5G network.
Dish will pay AT&T at least $5 billion over the 10-year term of the agreement, subject to certain terms and conditions.
Upon expiration of termination of the agreement, a two-year transition period will apply:
Upon expiration or termination of the NSA, subject to certain limitations, a two-year transition period will apply, during which AT&T will cooperate to enable current end users to continue using the services. The NSA may be terminated by either party pursuant to certain customary conditions such as a material breach or insolvency. Additionally, in the event of a qualifying change of control of DISH, AT&T may terminate the NSA. Generally, a qualifying change of control would occur if (A) certain “restricted parties” own more than 50% of the voting power or own more than 50% of the economic value of DISH or any parent entity of the DISH wireless business; or (B) DISH sells all or substantially all of the assets of its wireless business to a “restricted party”. A “restricted party” generally includes certain U.S. wireless providers, certain U.S. cable companies and certain large technology companies. However, DISH would remain able to continue to use AT&T’s network services to support its MVNO customers for up to 2 years following any such change of control termination and would also retain access to roaming services on the AT&T network for both new and existing DISH MNO subscribers during such period.
Here are Dish’s key talking points from its press release announcing the deal:
DISH announced today the signing of a transformative, long-term strategic Network Services Agreement (NSA) with AT&T, making AT&T the primary network services partner for DISH MVNO customers. Through this agreement, DISH will provide current and future customers of its retail wireless brands, including Boost Mobile, Ting Mobile and Republic Wireless, access to best-in-class coverage and connectivity on AT&T’s wireless network, in addition to the new DISH 5G network. The agreement accelerates DISH’s expansion of retail wireless distribution to rural markets where DISH provides satellite TV services. AT&T is also providing transport and roaming services as part of the agreement, to support DISH’s 5G network.
DISH is committed to providing competition in the wireless market as the nation’s fourth facilities-based carrier. The company will continue to build out the nation’s first cloud-native, OpenRAN-based 5G network reaching over 70% of the population by 2023.
For many years, AT&T has been a leader in connectivity. Between 2016 and the end of the first quarter 2021, AT&T has invested more than $140 billion into its wireless and wireline networks, including capital investments and acquisitions of wireless spectrum and operations, to support market demand for communications. The agreement allows AT&T the opportunity to use a portion of DISH’s spectrum in various markets to help support DISH customers on AT&T’s network.
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[1] DISH and AT&T Sign Strategic Network Services Agreement, Dish.com, Press Releases (July 19, 2021), https://ir.dish.com/news-releases/news-release-details/dish-and-att-sign-strategic-network-services-agreement.
[2] Dish Network Corporation, Form 8-K, Securities And Exchange Commission (July 19, 2021), https://www.sec.gov/ix?doc=/Archives/edgar/data/0001001082/000100108221000019/dish-20210714x8k.htm.
