Dish Network recently reported that they lost broadband subscribers this year due to lack of facility in high demand regions. Representatives from the company said that the first issue will be solved starting in 2017, as two of its satellite developers, ViaSat and Hughes Network systems, are launching new satellites with Ka-band beams to cover promising geographies.
Hughes and ViaSat have been modifying their satellite models and are avoiding signing up of customers who might quit service in a short time after hitting the data-download barriers, which are imposed to assure bandwidth availability for consumers. As of June 30, DishNET service had 613,000 customers, who dropped to 15,000 3 months ago, and was 4,000 new customers in the same time a year ago.
In a filing with US Securities and Exchange Commission, Dish told that the decline in customers is “primarily due to stricter customer acquisition policies, including an increased emphasis on acquiring higher-quality subscribers, and satellite capacity constraints in certain geographic areas.”
Hughes and ViaSat used their highest capacity satellites operating on affixed beams over locations with high demand for their broadband services, by choosing appropriate locations before their service started. Both learned that the potential locations are near urban area and not rural areas, and since then, they focused on highest demand regions, and tailored coverage with their follow on satellites accordingly.
Both Hughes and ViaSat operate proprietary consumer broadband system, which means they also provide consumer premise equipment along with satellite. Dish told that under its contract with Hughes, it is not obligatory for DishNET to purchase Hughes hardware, but they could if they wanted, as it is their right.
The above agreement with Hughes is in effect until March 2024. In addition to that, Dish Network said that they have purchased $5 million worth of Hughes broadband hardware in the last 6 months, which is more compared to the $4 million spent during the same time last year.