DISH Network Still Neutral - Analyst Blog
13 March 2012 - 3:11AM
Zacks
DISH Network Corp. (DISH) reported solid
financial results for the fourth quarter of 2011, significantly
outpacing the Zacks Consensus Estimates. Most importantly, the
company generated net subscriber additions in the last quarter,
reversing the trend of the prior two successive quarters.
This solid performance was primarily attributable to the new
movies streaming services that DISH Network has started after its
acquisition of Blockbuster movie chain. The company is continuously
doing innovation of technically superior hardware, the latest of
which is a HD DVR set with huge storage capacity. Furthermore, the
company has already acquired huge amount of wireless spectrum.
DISH Network is negotiating with several content developers to
obtain rights to distribute online video versions of the programs.
This will enable DISH Network to stream cable channels of the media
companies to Internet browsers.
In addition, the company is distributing place shifting HD-DVR
developed by Sling Media that enables its subscribers to view
programs from their respective pay-TV subscriptions on Internet and
mobile platforms. DISH Network renewed its agreements with
Frontier Communications Corp. (FTR),
ViaSat Inc. (VSAT), and Charter
Communications Inc. (CHTR) to offer digital TV service to
the latter’s customers, who are mainly settled in the rural areas,
thus further extending the company’s reach in every corner of the
country.
Nevertheless, recently, DISH Network suffered a major blow as
the FCC (Federal Comm delayed its decision for a waiver of using 40
MHz S-band wireless spectrum only for mobile phone use. The FCC
stated that they are in process of rulemaking and the final
decision will be taken once the rule will be finalized.
However, various experts have opined that such rulemaking may
take several months or more than a year. For the time being, DISH
Network has to put aside its ambition to deploy a high-speed
wireless broadband network to offer mobile Internet services to its
customers.
We, therefore, maintain our long-term Neutral recommendation on
DISH Network.
CHARTER COMM-A (CHTR): Free Stock Analysis Report
DISH NETWORK CP (DISH): Free Stock Analysis Report
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