DISH Network (US:DISH)2023-11-06 20:42Financial Data and Key Metrics - The company expects CapEx to decline in Q4 2023 and into 2024, with an uptick in the first half of 2025 as the final build-out milestone is completed [23] - The company has $3 billion of debt maturing in 2024, with plans to address the March convertibles using equity, although the market conditions have made this more challenging [18][19] - The company reduced its MVNO bill by a third, which is expected to significantly impact the retail business trajectory [26] Business Line Data and Key Metrics - The company is seeing traction with the iPhone 15 promotion, particularly due to the $60 offer and the annual upgrade option [12] - By June 2024, the company expects to have 100% Android device compatibility and partial Apple device compatibility, with newer Apple models supporting 5G SA software [13][35] - The Boost Infinite and Boost Mobile businesses are expected to see improved economics as more devices become compatible with the company's network [26][27] Market Data and Key Metrics - The company is focused on achieving a 73% VoNR footprint, covering major cities and NFL markets, with 20,000 sites expected to be operational by the end of 2023 [51] - The company is working on integrating its network with EchoStar, which has a mature enterprise customer base, potentially accelerating growth in the enterprise sector [49][50] Company Strategy and Industry Competition - The company is building a 21st-century, data-centric network architecture, which is unique in the U.S. and positions it well for future technologies like AI [16] - The company is exploring partnerships and strategic options to address capital needs, including potential deals with TPG and AT&T [14][15] - The company is focused on reducing costs and improving operational efficiency, particularly in the Pay-TV business, where it is looking to optimize customer experience and capital allocation [65] Management Commentary on Operating Environment and Future Outlook - The company acknowledges the challenges of the current market environment, particularly with high-interest rates and the need for significant capital investments [10][30] - Management is optimistic about the long-term potential of the enterprise business, especially with the integration of EchoStar, which brings additional capabilities and customer relationships [49][50] - The company is cautious about fixed wireless access due to government subsidies and regulatory uncertainties, which could impact the competitive landscape [55][57] Other Important Information - The company is working on improving its online sales experience, particularly through partnerships with Amazon, to enhance customer acquisition and retention [125][127] - The company is focused on reducing marketing and commission costs, which were elevated in Q3 2023, with expected improvements in Q4 as new commission structures take effect [61][122] Q&A Session Summary Question: Capital needs and funding options beyond 2024 [9] - The company is focused on addressing near-term debt maturities and exploring both internal and external funding options, including potential partnerships [9][19] Question: Traction with iPhone 15 and Boost Infinite customer acquisition [138] - The company is seeing demand for the iPhone 15, particularly from customers switching from other carriers and through the Amazon partnership [12] - The company expects to reach two-thirds device compatibility by June 2024, driven by new device availability and network improvements [26][27] Question: 5G enterprise pipeline and private network opportunities [48] - The company is optimistic about the enterprise business, particularly with the integration of EchoStar, which has existing relationships with major airlines and other enterprises [49][50] Question: Pay-TV business optimization and cost management [63] - The company is looking to optimize its Pay-TV business by reducing costs and improving customer experience, aligning with industry trends highlighted by the Disney-Charter dispute [65] Question: CapEx and marketing spend flexibility [125] - The company has flexibility in adjusting marketing spend and CapEx, with a focus on improving the online sales experience and reducing costs [125][130]