Liberty Latin America will purchase the combined assets from Dish for about $256 million
Dish Network is selling spectrum and approximately 120,000 Boost Mobile prepaid customers in Puerto Rico and the U.S. Virgin Islands to Liberty Latin America. The combined asset purchase will amount to $256 million.
For Liberty Latin America, the deal with Dish, upon completion, means access to “valuable low, mid, and high band spectrum” that the operator’s Senior Vice President Vivek Khemka said will enable it to “add more capacity, increase speeds, and further strengthen [its] leading 5G mobile network.”
According to Reuters, Dish Network has roughly $21 billion in debt, with $5 billion coming due in 2024 and 2025, and the decision to sell will free up some capital for the provider. Further, Dish views Puerto Rico and the U.S. Virgin Islands markets as competitive and subject to weather challenges, and so believes that by not having to expand its networks there, will realize notable capital savings.
“This transaction will enhance competition within the wireless market in Puerto Rico and the USVI, while providing Dish with additional capital to focus on our wireless business in the United States,” commented Tom Cullen, executive vice president of Corporate Development at Dish Network.
Given Dish Network’s disappointing Q3, tightening its focus seems like a good idea. The company’s stock plummeted to a 25-year low and the company posted a net loss of $139 million whereas in the same quarter last year, the company reported net income of $412 million. The pay TV business lost 64,000 subscribers in Q3, compared to a net add of 30,000 subs in Q3 2022. The company had a net loss of 225,000 wireless subscribers in Q3, compared to a net increase of 1,000 in year-ago quarter. Dish Wireless has 7.5 million wireless subscribers. Full financials are available here.
