Dish Moving From T-Mobile to AT&T for Network Coverage

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Dish Moving From T-Mobile to AT&T for Network Coverage

Dish Network has reach an agreement for AT&T to provide network coverage to its customers for the next ten years, at the cost of $5 billion.

Dish Network played a pivotal role in the T-Mobile/Sprint merger. Regulators were concerned about going from four to three major wireless carriers, and wanted Dish to move into the role of fourth. To assist it, regulators worked out a deal whereby T-Mobile would provide network coverage and resources to Dish’s customers.

It appears Dish is looking to make its own deals, with it pursuing a $5 billion 10-year deal with AT&T, according to an SEC filing. According to The Wall Street Journal, it’s estimated T-Mobile was receiving $1.5 to $2 billion a year, so the price tag for AT&T’s service could be substantially cheaper.

In addition, Dish has accused T-Mobile of unfairly planning on shutting down its 3G network the beginning of 2022, potentially leaving many of Dish’s customers without service. While AT&T also plans on shutting down its 3G network in early 2022, it’s possible the acrimony with T-Mobile over its 3G plans may have reached the point that Dish simply didn’t want to continue working with the Magenta carrier. Add in a potentially large financial savings, and Dish may have viewed the AT&T deal as too good to pass up.

Regulators will undoubtably be interested in reviewing the deal, especially since they worked so hard to establish the one Dish wants out of.

Dish Moving From T-Mobile to AT&T for Network Coverage
Matt Milano

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