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AT&T, Verizon execs question DISH's readiness to compete in US wireless market

Asked about the pending entry of DISH Network Corp. as a U.S. wireless operator, AT&T Inc. and Verizon Communications Inc. executives questioned whether the satellite TV operator would be ready to launch competitive next-generation wireless services.

"The exam question is, can and when will DISH be an operator?" said Ronan Dunne, Verizon executive vice president and head of the company's consumer division, at a Sept. 11 industry conference. "While I'm respectful of all of my competitors, I don't see it as a reason to divert me from the strategy that we have today," he added.

While DISH has been buying up spectrum for over a decade, its wireless network launch strategy accelerated with the announcement that it would buy Sprint's prepaid businesses and various spectrum assets as part of an agreement with the U.S. Department of Justice to allow for the launch of a fourth national U.S. wireless carrier following the pending merger of Sprint and T-Mobile US Inc. The conditional DOJ approval of the Sprint/T-Mobile merger is being challenged by a coalition of state attorneys general, who also raised concerns about DISH's ability to launch a competitive offering.

"We have a history of building really good networks, and we know how hard it is to build a consumer base network," said John Stephens, AT&T's CFO and senior executive vice president, at the Sept. 11 conference. Stephens said AT&T executives are watching how the marketplace evolves but are confident in the company's position to compete as a top-tier wireless provider. "We really do feel pretty good about whatever happens," he said.

Both executives also spoke about their respective companies' plans for deploying 5G networks.

Verizon launched an early version of its 5G home broadband services in parts of Houston, Indianapolis, Los Angeles and Sacramento, Calif., in 2018. Dunne said a new standards-based version of its 5G Home hardware should be available in the second half of 2019. Verizon CEO Hans Vestberg in August said the company is on track to launch 5G mobile services in 30 markets this year.

Stephens said AT&T is well positioned to become a core nationwide 5G network provider by the first half of 2020. AT&T launched 5G mobile service in parts of 12 cities in late 2018 and expanded its 5G coverage to seven more cities this year.