DISH Seals Deal with Qualcomm

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DISH Network Corp. (DISH) recently selected the world’s leading mobile chipset maker Qualcomm Inc. (QCOM) for the development of chipsets for its wireless handsets, supporting both terrestrial and satellite frequencies in the 2GHz/AWS-4 bands.

Qualcomm’s popular Snapdragon S4 MSM8960 3G/LTE dual-core processors have been selected for this purpose as they support both terrestrial and satellite network in mobile devices. This technology is known as EAGL (Enhanced Geostationary Air Link) and is also used by LightSquared. The convergence of both terrestrial and satellite networks in a single device will not only improve the coverage area but also facilitate faster upload and download speed.

Currently, DISH Network holds 40MHz of satellite spectrum, which it plans to utilize for setting up a terrestrial wireless network. The company is now awaiting the final decision of the Federal Communications Commission (:FCC) regarding the spectrum usage.

These days, most cable and telecom companies offer triple play services (voice, video and Internet) to their subscribers. The growing popularity of tablets and smartphones coupled with the increased roll out of 3G/4G networks are pushing this trend because they enable customers to easily watch their favorite TV shows and movies on these new electronic devices.

Better late than never. DISH Network is now expected to be able to enter the wireless market with its own terrestrial wireless network service, which could also help it pick up some market share.

Currently, DISH Network has a Zacks #3 Rank, implying a short-term Hold rating on the stock.

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