DISH Forays into Rural Markets

Zacks

DISH Network Corp. (DISH) – the second largest satellite TV operator in the U.S. and NTELOS Holdings Corp. (NTLS) – a leading regional wireless network operator – jointly launched broadband service across rural Virginia by utilizing 2.5 GHz band of airwaves.

Last month, both DISH Network and NTELOS Holdings Corp. entered into the partnership to rollout fixed-mobile broadband network across Virginia. Following the successful trial of the fixed-mobile broadband network, both these companies are prepared to deploy services in the state by means of driving its network speed in the range of 20 – 50 Mbps.

Higher proliferation of smartphones and tablets has facilitated increased demand for network usage as more customers prefer watching videos on their smart mobile devices. Moreover, huge availability of HD video content coupled with flexible viewing options offered by TV channel companies has further catapulted the demand for network speed.

In order to address such issues, both these companies have jointly setup two test sites for wireless towers in the Blue Ridge Mountains near Waynesboro and Afton. Customers are provided with a rooftop device, which will receive the signal and transmit it to users’ homes.

Despite having huge spectrums portfolios, DISH Network is yet to decide about its wirekess network plan. Presently, the company is bidding for 4G wireless wholesaler, Clearwire Corp. (CLWR) and the third largest U.S. carrier, Sprint Nextel Corp. (S). The company has offered takeover bids of $4.40 per share for Clearwire and $7.00 per share for Sprint.

Currently, DISH Network carries a Zacks Rank #3 (Hold).

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