Dish to pay lower rates for the use of T-Mobile’s wireless service
Dish and T-Mobile have agreed to change the terms of their master network services agreement (MNSA). Already having started retroactively on January 22, 2022, Dish is now paying a lower rate to T-Mobile for access to its wireless service. The MNSA started on July 1, 2020, with a seven-year term and there are now five years left on the contract. Dish says that it has agreed to pay T-Mobile a minimum of $3.3 billion over the remaining five years of the agreement.
Dish Network became the new “fourth nationwide facilities-based network competitor” replacing Sprint.”
When Dish agreed to become the nation’s new “fourth nationwide facilities-based network competitor,” replacing Sprint and keeping the number of major wireless providers at four to prevent prices from rising, it entered into an MVNO agreement with T-Mobile. An MVNO is a mobile, virtual network operator. These companies, like Dish was at the time, are firms that sell wireless service to consumers even though they do not own any wireless cell towers.
Dish Wireless continues to lose wireless customers
Under the terms of the deal, T-Mobile sold access to its network to Dish; the latter turns around and sell wireless service 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 Wireless will eventually replace Sprint leaving the country with four major wireless firms once again
Building a new 5G wireless provider is not an easy thing to do. 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 win a hoard of 600MHz low-band spectrum (which was used for T-Mobile’s initial coast-to-coast nationwide 5G service), Dish spent over $6 billion to become the second-largest spender during the auction.
The third-largest spender at the auction was Comcast. The cable firm spent $1.7 billion at the auction and announced that it was starting an MVNO called Xfinity Mobile. Service comes from Verizon’s mobile network (including its 5G service) and Xfinity’s collection of hotspots.
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