Dish Network executives detailed plans to revamp its recently acquired Boost Mobile prepaid business, shifting strategy to pursue more profitable customers in a bid to help offset the costs of an MVNO deal with T-Mobile US.
Company chairman Charlie Ergen explained during a call with investors that while former Boost Mobile owner Sprint could be more flexible about the kind of customers it acquired, “we have to pay T-Mobile for the network, so we have to run it a little bit different”.
Dish Network purchased 9.3 million Boost Mobile customers from T-Mobile in July [1] following the operator’s merger with Sprint. It is using connectivity supplied via an MVNO agreement with T-Mobile to offer service while it works to build a standalone (SA) 5G network.
Ergen said it is working to “clean up” its subscriber rolls, noting “some customers that were very good customers for Sprint potentially aren’t good customers for us”.
The comments came as Dish Network launched several new Boost Mobile tariffs ranging from $10 per month for 1GB of high-speed data to $35 per month for 10GB of data. All plans include unlimited voice and messaging, with additional data available for $5 for 1GB or $10 for 2GB.
Ergen added he expects margins for the mobile business will be low until it makes substantial progress building its own network and can reap the benefits of owner economics.
Dish Network aims to launch its first SA 5G market later this year and cover 70 per cent of the US population by June 2023.
[1] https://www.mobileworldlive.com/featured-content/top-three/dish-serves-up-fresh-us-mobile-option
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