Dish Will Supplement Its 5G Service With AT&T Wireless Network

Dish Network's mobile customers will use AT&T's wireless network in addition to Dish's 5G network under a network services agreement announced by the two companies Monday. The agreement says AT&T will be the primary network services partner for Dish mobile virtual network operator customers. They said AT&T will also provide transport and roaming services to support Dish's 5G network. "Teaming with AT&T on this long-term partnership will allow us to better compete in the retail wireless market and quickly respond to changes in our customers' evolving connectivity needs as we build our own first-of-its kind 5G network," said Dish Chief Operating Officer and Group President-Retail Wireless John Swieringa. Under the terms of the 10-year NSA, Dish will pay AT&T at least $5 billion and AT&T can deploy portions of Dish's spectrum to support Dish customers on the AT&T network. New Street Research's Jonathan Chaplin, in a note to investors, said presumably AT&T would pay Dish for use of the spectrum or Dish would get a reduction in what it's paying AT&T under the MVNO. He said the deal was likely driven by Dish's issues with T-Mobile shutting down the Sprint CDMA network that many of Dish's Boost customers rely on. Chaplin said the Dish/AT&T deal could indicate a DirecTV/Dish DBS deal could be more plausible since it indicates a willingness for AT&T and Dish to work together. He said such an agreement would face regulatory challenges "though we see it as a hurdle; not a barrier."