Private tower operators and services companies expressed doubts US newcomer Dish Wireless would come close to achieving its 5G network deployment targets, raising questions about the operator’s revenue-generating potential, MoffettNathanson analysts reported.
In a research note issued today (26 May) following the Infrastructure Association (WIA) Connect(X) event earlier this week, MoffettNathanson noted several tower companies were concerned over Dish Wireless’ long-term prospects.
MoffettNathanson stated Dish Wireless “faces myriad challenges in establishing a business that comes close to achieving management’s target”.
Dish Wireless launched its delayed greenfield 5G network earlier this month and is required to cover 20 per cent of the US population by 14 June.
The company’s executives have previously stated it is on track to meet the coverage target along with offering services in 120 markets the same month.
MoffettNathanson stated the challenges facing the operator “raises questions regarding the length of time over which Dish Wireless is likely to contribute nicely to tower growth”, how to “value revenue” from leasing deals “and what would happen in a worst-case scenario if it fails as a going concern”.
The research company explained while a majority of Dish Wireless’ leasing was with colocation companies, one tower developer told it he would never build a site with the mobile operator as an anchor tenant.
MoffettNathanson noted there was a consensus among tower operators a cautious approach to dealing with Dish Wireless should be adopted.Subscribe to our daily newsletter Back