DISH looks to rural telcos, stays away from AT&T
Following the cancellation of its relationship with AT&T, Dish Networks is looking to its rural telco partners to drive its recovery, while staying away from its former partner at all costs. The satellite company, which saw its profits rise 21% year-over-year despite continued customer loss in the first quarter of 2009, will focus on the rural markets. "Our weakest markets are where there is a good operator with great service and great prices and has a triple play, quadruple play or even a double play," Charlie Ergen, Dish's chief executive officer, said. "That's a tough market for us...An investment in the U-Verse market in the Northeast, where there is great service and the triple play for $99, it may not be the best place for us to compete. Having said that, there are still markets where we are very competitive, and we think we have the best product. We have to focus on where we have the best product," he continued. "If I lived in New Jersey and lived in a million-dollar house that was a mile away from U-Verse and U-Verse had a front line right up to my house, I might buy U-Verse. I might not, but that's something to look at. If I lived in rural Idaho, I probably wouldn't buy U-Verse."