Dish to pay lower rates for using T-Mobile’s wireless service

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Dish and T-Mobile have agreed to change the terms of their Master Network Services Agreement (MNSA). Dish has already started retroactively on January 22, 2022 and is now paying a lower rate to T-Mobile for access to its wireless service. The MNSA started on July 1, 2020 with a term of seven years and the contract now has five years left. Dish says it has agreed to pay T-Mobile a minimum of $3.3 billion over the remaining five years of the deal.

Dish Network became the new “fourth nationwide facility-based network competitor” to replace Sprint.

When Dish agreed to become the country’s new “fourth nationwide facility-based network competitor,” replacing Sprint and keeping the number of major wireless carriers at four to prevent prices from rising, it closed an MVNO. agreement with T-Mobile. An MVNO is a mobile, virtual network operator. These companies, as Dish was at the time, are companies that sell wireless services to consumers, even though they don’t have wireless cell towers.

Under the terms of the deal, T-Mobile sold access to its network to Dish; the latter turns around and sells wireless services to its customers at a higher price. But T-Mobile committed what they call in the wireless industry, “A Bozo no-no.” OK. It’s not really called that, but it should be.

Dish planned to use T-Mobile’s network as it built its own standalone 5G network. And Dish would also allow its Boost Mobile customers to use Sprint’s 3G CDMA network, which T-Mobile would run for another three years before it was discontinued. But to Dish’s chagrin, T-Mobile moved the time frame, preventing Boost from using Sprint’s 3G CDMA service, well ahead of the original three-year period T-Mobile agreed to.
So Dish struck a deal with AT&T and paid the carrier $5 billion over 10 years to use its network instead of T-Mobile’s pipeline. In the first quarter of this year, Dish and T-Mobile reached a settlement. However, that agreement ended in jeopardy when T-Mobile officially stopped Sprint’s 3G CDMA service in May.
Or T-Mobile felt it owed Dish for the way it treated Charles Ergen and the crew, the deal was done and Dish will save some money; that’s important for a wireless startup like Dish Wireless that is losing customers every quarter. Dish now has 8.2 million wireless customers and had a 5.11% churn rate in Q1 2022, up from 4.44% churn rate in the same quarter last year.

Dish Wireless will eventually replace Sprint as it leaves the country with four major wireless companies

Building a new 5G wireless provider is not easy. Dish chairman Charles Ergen had wanted to run a wireless business for years. You probably don’t remember, but when T-Mobile spent $7.9 billion in 2017 to gain a wealth of 600MHz lowband spectrum (which was used for T-Mobile’s first nationwide 5G service from coast to coast), Dish spent more than $6 billion to become the second largest spender at the auction.

The third largest spender at the auction was Comcast. The cable company spent $1.7 billion on the auction and announced it was starting an MVNO called Xfinity Mobile. The service comes from Verizon’s cellular network (including its 5G service) and Xfinity’s collection of hotspots.

At this time, Dish Wireless customers can use the signals from both T-Mobile and AT&T. Last year, Thaddeus Arroyo, CEO of AT&T Consumer, said: “Working with Dish on this agreement is not only a testament to the strength of our network, but it also reaffirms the investments we have made in our fiber and wireless infrastructure. … welcome Dish wireless and its customers to the nation’s largest and best wireless network for all their streaming, data and roaming needs.”

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