Things go from bad to worse as Boost Mobile reduces its head count

FCC has been accusing EchoStar of being a spectrum speculator

Dish Wireless become Boost Mobile last year. | Image credit-Dish Network

After losing its spectrum, Boost will become a hybrid MNO, or a hybrid Mobile Network Operator. Boost subscribers will use AT&T‘s network primarily although they also will have access to the T-Mobile network. AT&T will provide the base stations, radios, radio access network (RAN) software and spectrum frequencies. EchoStar will handle the billing, deliver the network core, and and provisioning software.

EchoStar hopes to retire some debt with some of the proceeds of its spectrum sale

EchoStar revealed its motives for the reduction in head count. “Due to Federal Communications Commission (FCC) actions, the recent announcement of EchoStar selling spectrum licenses to AT&T significantly impacts the company’s 5G wireless network deployment unit. With elements of our network to be decommissioned over time, the company will eventually not house a wireless network deployment workforce. After thorough review of our business operations moving forward, we have made the difficult decision to reduce our network deployment workforce. The majority of impacted employees were notified on Thursday, August 28.”

EchoStar President and CEO Hamid Akhavan said that the deal with AT&T will allow EchoStar to retire some debt and help fund its current businesses. It will, as noted, be a hybrid mobile network operator and a direct-to-device (D2D) satellite service provider. The executive alsio said on LinkedIn last week, “This is an important step toward resolving the FCC’s recent inquiries and demonstrates our commitment to continued innovation and success.”

Because Boost Mobile will continue to exist, just not as a fourth facilities-based carrier, the spectrum sell-off impacts the retail part of the company a lot less than the network part of the business. The EchoStar spokesperson reiterated that there are no changes to the Boost Mobile brand. This is unfortunate for Boost Mobile because many blamed Boost’s struggles on its failure to promote the company and its services. Meanwhile, Boost customers praised the quality of the network which is now dismantled.

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