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Flixed Newsletter 2 - Feb.17/2020

Flixed Newsletter 2 - Feb.17/2020

Flixed Newsletter - Are Sling TV Phone Bundle on the Way?

February 17, 2020

Issue 7: February 17, 2020

The T-Mobile/Sprint merger is complete, and with it, a bit of an odd requirement to boost DISH's purchase of Boost Mobile and launch the service as the new 4th largest wireless phone provider. With DISH's Sling TV ownership, this could have interesting results for cord-cutters. Read on to find out more in this week's Stream Report.

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Streamer's Spotlight: A Potential Future for Sling TV Bundling

Bundling is a big deal these days. AT&T notably bundles its AT&T WatchTV service with high mobile carrier data plans. Cord-cutters can also get Netflix, Amazon Prime (and Prime Video), and Hulu as part of other bundled wireless provider packages. And as DISH slowly works to enter the wireless phone market, it could help sweeten the deal for new subscribers with a Sling TV bundle.

Why is DISH Entering the Wireless Phone

As a critical part of allowing T-Mobile and Sprint to merge into one company, the Department of Justice (DOJ) required the two companies to ensure that there was a healthy, 4th competitor still in the market. The solution was a DISH Network purchase of Boost Mobile as well as some major wireless infrastructure assets. That deal went forward on the eve of a federal judge rubber-stamping the Sprint/T-Mobile merger.

As it stands, DISH is set to purchase Boost Mobile to the tune of $1.5 billion, with an additional $3.5 billion going to purchase wireless spectrum. And as part of the process, T-Mobile/Sprint (referred to as "The New T-Mobile" at present), will help get DISH off the ground.

Will DISH Offer Sling TV As a Bundled Wireless Phone Package?

There's no telling what DISH will do with its new wireless phone provider, or what it will even call its new service. However, it's not inconceivable that the company will hedge its bets on its existing services to help attract more customers. That could very well include bundling current or a new package of Sling TV channels into the mix.

Notably, wireless carriers can make a healthy per-customer profit by selling phones and data plans. The biggest expense tends to be establishing and expanding network infrastructure (which is why telecoms tend to fight hard to get this expense subsidized by the federal government, where they can, or avoid expanding in rural areas).

With cord-cutting live TV services making a limited profit, especially due to carriage fees, DISH may be able to recoup some costs by driving a new account with the bonus option of a Sling TV subscription.

Pure speculation? Definitely. But it's a likely outcome given the way the market is going and based on precedent. A DISH Wireless + Sling TV bundle is quite possibly something we'll see on the market in the coming years.