Sprint has confirmed that it has partnered with DISH to develop and deploy a fixed wireless broadband network for homes on a trial basis.
On Tuesday, December 17, the U.S. wireless service provider Sprint and the satellite television company, DISH Network Corp., announced that it will be jointly testing home wireless broadband service in select areas of Corpus Christi, Texas. The service is expected to start from middle of 2014 and is expected to reach other markets in the future.
Depending on a customer's location, DISH will install either an outdoor router or an indoor solution to provide the best possible broadband service to the customers of Corpus Christi. Both of DISH's solutions will feature built-in high-gain antennas, which can receive the 4G TDD-LTE signal on Sprint's 2.5 GHz spectrum.
"With millions underserved by inadequate broadband, the potential to bring a high-speed fixed wireless solution is very compelling to both DISH and Sprint," said Tom Cullen, DISH executive vice president of Corporate Development. "We both bring distinct skills, not the least of which for DISH is a workforce of professional technicians who visit thousands of homes every day performing professional installations for both video and broadband."
DISH has been trying to team with an established wireless operator in the U.S. for a while. Previously, market observers believed that Sprint and T-Mobile (USA) are highly likely to partner with DISH.
"This trial with DISH has great potential as it combines the key capabilities and assets of both companies to provide another option to customers with limited broadband access," said Michael Schwartz, Sprint senior vice president of Corporate and Business Development. "This demonstrates Sprint's ongoing commitment to identify and develop new and innovative products and services that maximize the use and utility of our spectrum and flexible network infrastructure to the benefit of customers and shareholders."
DISH has already spent around $3 billion on wireless airwaves and is also reported to buy more in the U.S. However, the satellite television company may save billions of dollars if it puts its spectrum to use on an existing wireless operator's network like that of Sprint.
Following the announcement, Sprint's shares surged by 3.6 percent to $8.61 in the afternoon trading session on the New York Stock Exchange, while DISH's stock was up by 2.6 percent to $55.02 on Nasdaq.