DISH Network Corp. (DISH) reported weak financial results for the second-quarter 2012, way behind the Zacks Consensus Estimates. However, the company significantly reduced its net subscriber loss figure buoyed by lower churn rate.
The new movies streaming services that DISH Network started after its acquisition of Blockbuster movie chain, better overall pay-TV services, and increased customer loyalty helped the company to outpace its closest rival DIRECTV (DTV) and several cable TV operators in terms of net subscriber loss.
DISH Network is continuously improving its technically superior hardware, the latest of which is a HD DVR set. This new device will enable subscribers to automatically skip all advertisements for prime time TV programs. Meanwhile, the company suffered a major blow as FCC delayed its decision to grant the company a waiver to establish wireless broadband network. We reiterate our Neutral recommendation on DISH Network.
DISH Network has formed collaboration with Qualcomm Inc. (QCOM) to develop dual core 3G/4G LTE chipset that can support satellite-based data communications. DISH Network is currently waiting for the FCC nod to launch a nationwide high-speed wireless broadband network to offer mobile Internet and phone services to its customers using its newly acquired satellite airwaves.
Qualcomm's innovative Snapdragon S4 MSM8960 chipset enables wireless devices to be operational for both 3G and 4G network. DISH Network is trying to add satellite link up with this chipset. This chipset will be used in all wireless devices for DISH Network to be operational for both terrestrial and satellite mode in the 2GHz/AWS-4 bands.
Standard & Poor's Ratings Services (S&P) raised the company's outlook on the company from Stable to Positive. The reason for this upgrade was the proposed wireless network strategy of DISH Network.
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