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Dish and AT&T Join Forces in 5G Deal
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Dish and AT&T Join Forces in 5G Deal

Dish Network (DISH) announced a long-term partnership with AT&T (T), wherein the latter will provide network services to Dish MVNO customers. More explicitly, the Network Services Agreement requires Dish to enable existing and potential customers of its retail wireless brands to access its coverage and connectivity on AT&T’s wireless network, as well as on the new DISH 5G network.

Notably, the partnership will expedite Dish’s efforts to extend the reach of its wireless distribution to rural markets. AT&T will also provide transport and roaming services to back the DISH 5G network, as part of the deal.

The partnership is important to Dish, as it will help the company leverage AT&T’s reliable and fast 5G network, which already serves 250 million people across the country over sub-6 spectrum and millimeter wave spectrum.

Markedly, Dish is on track to develop America’s first cloud-native, OpenRAN-based 5G network, which will spread out to more than 70% of the population by 2023. (See Dish stock chart on TipRanks)

John Swieringa, Dish COO and Group President of Retail Wireless, said, “Teaming with AT&T on this long-term partnership will allow us to better compete in the retail wireless market and quickly respond to changes in our customers’ evolving connectivity needs as we build our own first-of-its kind 5G network.”

On June 25, Redburn Partners analyst Stephen Malcolm initiated coverage of Dish Network with a Hold rating on the stock and a price target of $43, implying a 8.86% upside potential to current levels.

Malcolm said, “Dish holds the keys to future US wireless sector returns. Having accumulated 113MHz of idle spectrum, it is finally embarking on its long-awaited entry into the mobile market…It is impossible to justify the current share price if that is chairman Charlie Ergen’s plan. We think a sale to Comcast is Dish’s best option, but given the uncertainties, this can hardly be a ‘base case.’”

Consensus among analysts is a Hold based on 5 Buys, 6 Holds and 2 Sells. The average Dish Network price target of $47.54 implies 21.8% upside potential to current levels.

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