DirecTV/Dish Buys Time for EchoStar 5G Network: Lightshed

The sale of Dish Network and Sling to DirecTV, as well as the spectrum-backed debt deals that accompany that transaction (see 2409300009), will give EchoStar several years to scale its wireless business, but that scaling up won't be easy, Lightshed Management's Walter Piecyk noted Wednesday. Along with the $10 billion EchoStar is raising against its AWS-3 and AWS-4 spectrum, its 3.5 GHz holdings could unlock another $2.75 billion in borrowing, he said. The DirecTV and spectrum deals provide EchoStar money for existing leases while the FCC approval of longer milestones for its 5G network buildout (see 2409200049) focuses on areas where EchoStar would use co-locations instead of new tower builds, he said. It also provides funding for the AT&T and T-Mobile mobile virtual network operator agreements, he said. A stronger balance sheet puts EchoStar in a better position to invest in customer acquisition for its Boost wireless business, "though this remains an uphill battle due to the industry’s low churn rates."