While convincing regulators to approve a merger between Sprint and T-Mobile, T-Mobile committed to allowing Dish to offload traffic to T-Mobile’s network for several years. Then, roughly a year ago, Dish announced that it formed a similar agreement allowing the company to piggyback on AT&T’s network.
On Tuesday, Dish announced that it renegotiated the arrangement with T-Mobile. Among other things, the amended agreement involves better pricing for Dish:
DISH Network (NASDAQ:DISH) and T-Mobile (NASDAQ:TMUS) signed an amendment to the 2020 Master Network Services Agreement…The amendment…incorporates financial and operational changes, including improved pricing and enhanced roaming solutions.
The new agreement will need to be approved by regulators. It’s expected to get a green light by the end of the summer.
Mike Dano at Light Reading wrote a more detailed article covering Dish’s announcement. While I don’t entirely trust the numbers, I found this excerpt especially interesting:
New Street analysts wrote in a note to investors Tuesday that Dish paid T-Mobile a little less than $2 billion in 2021 for access to its network, which equates to $17 per subscriber per month, or about $2 per GB. The analysts estimate that Dish’s deal with AT&T is closer to $1.50/GB, with a path to $1/GB over time. They said they believed Dish’s new agreement with T-Mobile is likely in line with its $1.50/GB deal with AT&T.
