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Does dish network own t mobile

T-Mobile was supposed to help Dish create a aggressive substitute for Sprint — it’s not going precisely

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Does dish network own t mobile

Illustration by Alex Castro / The Verge

To advertise regulators on their $26 billion mega merger, T-Mobile and Sprint executives educated anyone who’d focus that the deal would supply near-miraculous benefits. Nonetheless economists warned that US telecom merger ensures are historically meaningless, and the low worth in total rivals would — ultimately — finish in elevated prices and job cuts.

As a substitute of heeding their warnings and blocking the deal, US antitrust enforcers concocted an elaborate workaround: they may erect Dish Network on account of the nation’s new fourth major wi-fi service. Beneath the plan Dish acquired some T-Mobile spectrum, the Improve Mobile pay as you go mannequin, and the reassurance that T-Mobile would help Dish run a Mobile Digital Network Operator (MVNO) whereas it acquired its own nationwide network up and dealing.

Nonetheless squabbling between the companies culminated this week in Dish asserting it could possibly seemingly be altering T-Mobile with AT&T as its elementary companion, indicating that T-Mobile and Dish have been merely incapable of getting alongside, and the federal authorities was really not that all for forcing them.

“If T-Mobile is able to shirk this regulatory obligation with impunity, what’s to forestall future consent orders from being ignored?” Hal Singer, an economist who testified inside the route of the merger approval tells The Verge.

Earlier this yr, Dish commonly known as T-Mobile a “grinch” for shutting down its CDMA network before Dish had anticipated. In complaints to state and federal regulators, Dish accused T-Mobile of reneging on its merger ensures, and claimed the shutdown risked leaving fairly a number of Improve’s 9 million wi-fi prospects with out service in 2022. T-Mobile has denied fault and successfully accused Dish of not understanding its own settlement.

Up to now the Biden administration, centered largely on Large Tech security conversations, hasn’t taken fairly hundreds movement contained within the telecom residence. The administration has nonetheless to fully employees the FCC, and solely merely appointed a DOJ antitrust enforcer this week. Dish’s deployment targets are far off, and any vital authorities movement, if it comes within the least, seemingly stays years away.

The deal provides Dish until 2025 to deploy its wi-fi network to 70 p.c of the inhabitants. Provided that 70 p.c of the US lives on roughly Three p.c of the nation’s landmass, that shouldn’t have been a particular drawback. (Dish hasn’t given any public indication that it’s nearing that goal nonetheless.) Nonetheless it’s attending to 95 p.c safety the place Dish needs help, provided that the remaining chunk lives on ten circumstances the land mass on account of the preliminary 70 p.c.

That’s the place Dish’s $5 billion deal with AT&T is available on the market in. Beneath the proposal, AT&T will grant Dish MVNO prospects entry to AT&T’s 4G and 5G networks in rural and further sturdy to appreciate markets, as Dish focuses on creating out its own 5G network in major cities. Dish will nonetheless have entry to T-Mobile’s network until 2027, nonetheless AT&T will now be Dish’s elementary companion.

In a evaluation observe to prospects, Wall Freeway analyst Craig Moffett argues that whereas Dish’s relationship with T-Mobile might have soured, the deal with AT&T seemingly elevated Dish’s probability of survival as a wi-fi operator — in the meanwhile.

“Beneath the T-Mobile settlement, Dish had until 2025 to fulfill the FCC, nonetheless solely two further years afterwards to fulfill the reasonably additional exacting requires of patrons,” Moffett says. “That was often the true drawback.”

Provided that AT&T has really not provided CDMA entry, the affiliation gained’t resolve Dish’s complaints about T-Mobile’s option to shutter its CDMA network, doubtlessly harming Improve Mobile subscribers. AT&T, contained in the meantime, nabs necessary wholesale revenue with the dangerous guess that Dish obtained’t ever flip into worthwhile ample to erode AT&T market share.

Nonetheless with Dish bleeding wi-fi and TV subscribers at an alarming worth, the clock is ticking on Dish’s total survivability. All by the subsequent six years, Dish has to remain financially viable, assemble out an infinite and fashionable next-generation wi-fi network, protect state and federal regulators glad, and never instantly steal vital market share from a US telecom sector historically averse to being meaningfully disrupted by opponents.

It’s an infinite ask for an organization prolonged criticized — along with by T-Mobile in 2018 — for gobbling up troves of useful spectrum, then not delivering on its ensures to position that spectrum to take advantage of. Whereas the federal authorities deal bars Dish from selling its spectrum for six years, analysts have prolonged contemplated if Dish will merely string regulators alongside, promote its spectrum, then use the immense revenue to chortle off any remaining regulatory, licensed, and contractual obligations.

Moffett tells The Verge that Dish has already spent upward of $10 billion in long-term mobile tower leases, and risks dropping its spectrum together with financial penalties for missing deployment targets. Singer, nonetheless, stays unimpressed by the integrity of the merger affiliation with the federal authorities and nonetheless thinks an early Dish exit stays doable.

“The decree often gave Dish a easy out,” Singer says. “The precise goal of the regulation was T-Mobile. And now T-Mobile is attending to slither out.”

The saga might moreover end with AT&T looking out for Dish Network, AT&T nabbing Dish’s monumental spectrum holdings, the US wi-fi enterprise consolidating even additional, and all folks involved pretending none of this ever occurred.

All through the meantime, absolutely completely completely different merger ensures keep unfulfilled. T-Mobile’s promise that the deal would create new jobs — nonetheless viewable over on the corporate’s site — wound up not being price fairly hundreds. No matter claiming the deal will in all probability be “jobs constructive from day one and on day by day foundation thereafter,” the company has eradicated 5,000 positions to date, fairly hundreds as critics like Singer predicted.

Historically, antitrust enforcers are supposed to take a look on the accessible proof of a proposed union and act accordingly. All by the case of Sprint and T-Mobile, the Trump FCC permitted the deal forward of even seeing impression analysis, and the Trump DOJ’s prime antitrust enforcer Makan Delrahim personally labored with all three companies to substantiate deal approval.

As a substitute of merely blocking the merger and discovering an answer to prop up Sprint, the subsequent willpower often required assorted optimism in every the integrity of company merger ensures and the competency of US regulators. Now purchasers are left prepared for a network which can really not arrive, based mostly completely fully on relationships which have been bitter from the start.

“Merely as Delrahim scripted it,” Singer jokes.

Regulators put an extreme quantity of notion in T-Mobile to do the acceptable issue

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Does dish network own t mobile

The Sprint acquisition deal included too few requirements and put an extreme quantity of notion in an infinite company to do the acceptable issue. Illustration by Alex Castro / The Verge

When T-Mobile acquired Sprint in April 2020, it launched our major wi-fi service picks from Four down to a couple. Recognizing that this is ready to undoubtedly be a foul issue for US wi-fi prospects (aka all of us), T-Mobile agreed to a set of circumstances with the FCC’s blessing that may theoretically place Dish Network to fill the Sprint-shaped hole in our wi-fi panorama.

In a lot of phrases, one wi-fi competitor was allowed to chop again opponents offered that it agreed to help prepare one completely completely different competitor as an alternative. Sounds considerably suspect, proper? Really a deal like which can embrace pretty a few circumstances, requirements, and oversight to confirm it may actually work.

Nonetheless wanting as quickly as further, these have been an vital requirements imposed on T-Mobile to prop up Dish as a competitor:

  • Promote Sprint’s pay as you go enterprise, along with Improve Mobile, to Dish inside 120 days after the shut of the merger, and protect Improve’s competitiveness forward of the divestiture
  • Current Dish’s wi-fi prospects with entry to the T-Mobile network for on the very least six years by means of a wholesale MVNO settlement whereas Dish builds its own network
  • Current transition companies for as hundreds as three years afterward to substantiate Improve prospects are transferred merely
  • Not do one issue anti-competitive inside the route of Improve, like throttling or limiting entry to new network utilized sciences
  • Promote Sprint’s 800MHz spectrum to Dish three years after the closing of the merger
  • Give Dish the selection to amass outdated Sprint cell internet pages and outlets that T-Mobile opts to decommission
  • Current Dish with low-cost advance uncover of network transition plans which might affect Improve prospects

What’s missing there could also be any definition of success. The burden for the success of the plan lay on Dish’s shoulders, not T-Mobile’s, with Dish being the one legally required to cowl 70 p.c of the US inhabitants with 5G by 2023 (or now most undoubtedly 2025).

Appropriate correct proper right here we’re roughly a yr later and to date, T-Mobile appears to have technically achieved each little problem it acknowledged it may do for Dish by now. Nonetheless is the scheme to prop up our fourth wi-fi service working? It sure doesn’t seem so. The truth that Dish has now fled into the arms of AT&T reveals how insufficient T-Mobile’s help has been: as a substitute of relying on the companion mandated by the $26 billion mega merger, Dish now has to spend $5 billion on a competitor to get the place it ought to go. Whereas not the ultimate phrase proof, it’s the latest reminder that the deal was constructed on a shaky premise to begin out with, and regulators largely took it on faith that big companies would protect their ensures.

From the beginning, critics of the merger deal urged that it depended an extreme quantity of on T-Mobile and Dish doing the acceptable issue and was so obscure that it left the door open for humorous enterprise which might considerably hamper the trouble to prop up Dish. The model new T-Mobile wasted little time breaking its promise of being “jobs-positive from day one” and it didn’t take prolonged after the Improve sale for it to mess with Dish, too. In October 2020, T-Mobile educated Dish it could possibly seemingly be shutting down Sprint’s outdated CDMA network — which fairly a number of Dish’s Improve prospects rely on — on January 1st, 2022.

T-Mobile says it went above and former its obligations set out contained within the merger deal, and which can be technically true: regulators solely required six months’ uncover, and the company gave 14. T-Mobile’s filings with the FCC related to the merger don’t state exactly when it anticipated shutting down the CDMA network, merely that it wouldn’t accomplish that forward of January 1st, 2021. Nonetheless T-Mobile moreover publicly promised it may “assure continued and seamless operation of Improve Mobile […] following transition to Dish’s possession,” and nonetheless its CDMA shutdown is on an fairly further aggressive timeline than rivals AT&T and Verizon.

Getting the phrase out to prospects that they’ll need to buy a model new gadget and trying to find ample telephones for them takes time. AT&T started notifying its prospects of its February 2022 3G shutdown in July of ultimate yr, and as Dish has acknowledged repeatedly, Verizon has delayed closing down its CDMA network by assorted years to offer itself ample time to migrate prospects nonetheless using 3G telephones. In a present letter to the FCC, Dish moreover pointed to totally completely completely different statements T-Mobile made that led it to ponder that it will have a three-year interval to migrate prospects off the outdated network. T-Mobile’s response to the companion it was presupposed to prop up? It kind of says that Dish wasn’t paying shut ample consideration.

Giving Dish a bit larger than a yr’s uncover of a excessive service upheaval for a lot of of its new prospects is, to take advantage of the technical time interval, bullshit. (We’re not even counting the worldwide correctly being catastrophe and the chip shortage which might have made this prepare further sturdy.) And whereas T-Mobile is also proper when it claims to have carried out by the foundations, it positively qualifies as humorous enterprise.

Clearly, the deal didn’t require ample from T-Mobile, and relied too intently on then-CEO John Legere and Dish’s Charlie Ergen seeming like pretty cool guys to the select, Victor Marrero. Inserting the onus on Dish to pay up if it missed its 2025 deadline predictably did nothing to encourage T-Mobile to play good and help Dish alongside. Till Dish can pull off one problem unbelievable, it appears to be like we’ll be dwelling with out that fourth major wi-fi service for a really very very very long time to return as soon as extra.

10-year deal will make AT&T the primary network provider for Dish MVNO enterprise.

Jon Brodkin – Jul 19, 2021 10:12 pm UTC

Does dish network own t mobile

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Dish Network has agreed to pay AT&T on the very least $5 billion over 10 years for network entry amid a feud between Dish and T-Mobile.

Dish is contained within the early phases of making a 5G network and contained within the meantime is serving prospects as a reseller using network efficiency that it purchases from T-Mobile. Nonetheless Dish and T-Mobile are stopping over T-Mobile’s plan to shut down its 3G CDMA network before it initially supposed, with Dish accusing T-Mobile of anticompetitive conduct.

Throughout the route of that backdrop, Dish right this second launched “the signing of a transformative, long-term strategic Network Suppliers Settlement with AT&T, making AT&T the primary network companies companion for Dish MVNO [mobile virtual network operator] prospects.”

The AT&T network efficiency will serve prospects on Dish’s “retail wi-fi producers, along with Improve Mobile, Ting Mobile, and Republic Wi-fi,” Dish acknowledged. Dish moreover acknowledged the settlement will tempo up its “enlargement of retail wi-fi distribution to rural markets the place Dish provides satellite tv for pc television for laptop tv for laptop computer television for laptop TV companies” and that AT&T will current transport and roaming companies to help Dish’s future 5G network.

Dish revealed the $5 billion price in a Securities and Alternate Price submitting that moreover notes that the roaming and transport companies from AT&T obtained’t be restricted to areas the place Dish doesn’t assemble 5G infrastructure. The deal “provides Dish’s retail wi-fi prospects with voice and knowledge roaming companies all by the US on the AT&T network and entry to AT&T’s network, even all by the markets the place Dish is deploying its own 5G network,” Dish educated the SEC.

Instantly’s deal between AT&T and Dish is nonexclusive, so Dish can use every T-Mobile and AT&T efficiency to serve prospects. Nonetheless Dish’s assertion that AT&T will flip into the “elementary” network provider for Dish MVNO prospects reveals that Dish is making an attempt to attenuate the utilization of T-Mobile’s network. Dish’s MVNO deal with T-Mobile lasts until 2027.

Partnership with T-Mobile goes south

The T-Mobile/Dish partnership grew out of T-Mobile’s purchase of Sprint. When the Trump administration’s Justice Division allowed that merger, it required T-Mobile to advertise Dish the Improve Mobile pay as you go enterprise beforehand owned by Sprint, along with spectrum licenses and wholesale entry to the blended T-Mobile/Sprint network. The deal was supposed to help Dish flip into the fourth major service to interchange the opponents misplaced when the T-Mobile/Sprint merger diminished the number of nationwide carriers from Four to a couple.

Dish has since accused T-Mobile of anticompetitive conduct in assorted filings to the Federal Communications Price. Dish complained to the FCC in April that “T-Mobile has launched its intention to stage out off the Sprint CDMA network—dwelling to tens of an entire bunch of a whole lot of Improve subscribers—on January 1, 2022. That’s significantly forward of the three-year migration timeline it beforehand launched.”

Dish says that T-Mobile must ought to care for the 3G CDMA network until on the very least July 2023, which is three years after Dish’s purchase of Improve. Dish acknowledged that T-Mobile talked in regards to the three-year timeline in a July 2019 SEC submitting and in statements to the California Public Utilities Price (CPUC). As an example, T-Mobile educated CPUC that it will “help former Sprint prospects by the 3-year migration interval” and that it’ll have the power to “help Sprint prospects who’re reliant on LTE and CDMA utilized sciences and to shepherd prospects with incompatible handsets by means of the migration course of.”

T-Mobile says Dish “cherry-picked statements”

T-Mobile acknowledged it didn’t resolve to a three-year timeline, telling the FCC that “the statements Dish cites have been merely acknowledging that T-Mobile has as hundreds as three years to fully sunset the legacy Sprint CDMA network. It is absurd for Dish to counsel that these three cherry-picked statements customary the concept of its selling technique and needs to be deemed to override the clear and unambiguous contractual language contained contained within the MNSA [the Master Network Services Agreement between T-Mobile and Dish].”

T-Mobile additional argued that “all CDMA prospects, along with Dish’s Improve-branded prospects, will buy monumental benefits by migrating as deliberate onto T-Mobile’s new network, and it is fully of their most attention-grabbing curiosity to take motion. Beneath our settlement, it is unambiguously Dish’s financial obligation to migrate prospects to the model new experience in a correctly timed methodology, and contained in the occasion that they keep as hundreds as these obligations, no purchasers might very nicely be negatively affected by the sunset and really will buy substantial benefits.”

Dish then commonly known as T-Mobile’s response an “unconvincing attempt to justify its blatantly anticompetitive option to prematurely shut down the operation of the legacy Sprint CDMA network” and acknowledged it is “indisputable” that “the accelerated shutdown of the CDMA network seemingly will harm tens of an entire bunch of a whole lot of Improve purchasers, many who already face monetary challenges.”

“Dish is simply not asking for T-Mobile to do one issue moreover honor the commitments it made to regulators beneath oath and protect the CDMA network operational until on the very least July 2023,” Dish educated the FCC. “Whereas T-Mobile had no draw once more making these statements to offer comfort to regulators that its acquisition of Sprint wouldn’t finish in shopper harms, T-Mobile is now hiding behind slender contractual provisions in its attempt to perpetrate the exact harms it promised it acquired’t set off.”

Dish and T-Mobile have nonetheless yet one more ongoing wrestle

T-Mobile and Dish moreover disagree on sharing the 12 GHz spectrum band, as T-Mobile urged the FCC to stay away from giving terrestrial mobile rights to companies with MVDDS [Multichannel Video and Data Distribution Service] TV licenses, which includes Dish. T-Mobile acknowledged that may amount to “an undeserved windfall.” Dish ought to make use of the spectrum band for 5G.

As part of the T-Mobile/Sprint merger-and-divestment proceedings, Dish devoted to the federal authorities that it will assemble a 5G network serving 70 p.c of Of us by June 2023.

Dish doesn’t need its T-Mobile MVNO contract anymore.

Key Components

  • Dish can have entry to AT&T’s network by means of the rest of the final word decade.
  • AT&T will get wholesale revenue and entry to Dish’s spectrum.
  • T-Mobile’s dropping some revenue, nonetheless it fully’s creating one problem larger.

Dish Network‘s (NASDAQ:DISH) Improve Wi-fi prospects might shortly see absolutely absolutely completely completely different network safety. The satellite tv for pc television for laptop tv for laptop computer television for laptop provider signed a 10-year, $5 billion settlement with AT&T (NYSE:T) to take advantage of its wi-fi network. The deal will allow Dish to change from T-Mobile US (NASDAQ:TMUS) , which agreed to wholesale its network to Dish until 2027 as part of its merger settlement with Sprint.

The change is strategic for every Dish and AT&T, nonetheless it fully moreover presents a small blow to T-Mobile, which is making a ton of efficiency on its network.

Does dish network own t mobile

Image current: Getty Images.

What Dish will get

Dish’s current contract with T-Mobile provides it the rights to take advantage of its network until 2027, seven years following the service’s merger with Sprint. With its AT&T deal, Dish has the prospect to extend its MVNO service for an additional Four years or so whereas it continues to assemble out its own wi-fi network.

Dish owns billions of {{{{dollars}}}}’ price of wi-fi spectrum, nonetheless it fully takes every money and time to deploy it and assemble out a suitable network. Dish is devoted to creating out its network to cowl 50% of the U.S. inhabitants by 2023, and 70% of its spectrum’s attain by 2025. In every completely different case, it may face fines from the FCC. To get there, though, Dish can get by with focusing absolutely on dense metropolis areas.

Dish will nonetheless need to current nationwide safety to compete with the big carriers, though, and which suggests relying on considered definitely considered one of many Large Three for rural safety. A contract with AT&T extending into the next decade provides Dish pretty a few room to take advantage of its capital most effectively.

What AT&T will get

AT&T will get two components contained within the deal with Dish.

First, it may get a cash infusion of on the very least $500 million per yr, and pretty additional contained within the early years of the contract. That may help with its debt-reduction initiatives, which might tempo up following the divestments on DirecTV and WarnerMedia. AT&T’s steadiness sheet grew to indicate into loaded with debt following these acquisitions, and it’s confronted stress from prospects to get its debt beneath administration. It will nonetheless have pretty a few debt on its steadiness sheet following these spinoffs, nonetheless $500 million per yr can positively help.

Second, AT&T can have entry to Dish’s spectrum holdings to assemble out a network to help its MVNO prospects. That additional spectrum might assist improve AT&T’s network efficiency with out requiring AT&T to spend billions further on spectrum licenses in the end.

There’s moreover the potential that this settlement with Dish will open the door for AT&T and TPG to merge DirecTV with Dish Network. Which can presumably be a excessive win for every AT&T and Dish (if it may get regulatory approval), which can perceive necessary synergies from eradicating redundant property contained within the satellite tv for pc television for laptop tv for laptop computer television for laptop TV enterprise. For AT&T, it may get DirecTV absolutely off its books.

A small blow to T-Mobile

T-Mobile was often anticipating to lose the Dish Network MVNO contract. It had every expectation that it will no longer current a cloth contribution to revenue in the long run as Dish constructed out its own network and explored decisions with absolutely completely completely different network suppliers.

That acknowledged, it didn’t rely on to lose Dish’s enterprise so shortly. T-Mobile’s option to decommission the outdated Sprint CDMA network might have been a contributing downside to Dish’s transferring on from T-Mobile. AT&T doesn’t present a CDMA network, each, nonetheless there’s successfully no loss for Dish if T-Mobile gained’t help its CDMA prospects after 2021 anyway.

T-Mobile will lose on the very least $500 million per yr in revenue. All by the first three quarters of its settlement, T-Mobile’s wholesale revenue elevated by $1.77 billion. So the related value in these early years inside motive additional substantial.

T-Mobile’s progress story, nonetheless, is its spectrum income in 5G and its continued progress of postpaid subscribers. It expects in order so as in order so as to add between 4.4 million and 4.9 million web new actives in 2021. So whereas having Dish work with AT&T couldn’t have been contained within the latter’s plans, it gained’t have an infinite damaging impression on the telecom stock, and it has no impression on administration’s long-term expectations.

by Kurt Schlosser on April 1, 2021 at 12:16 pm April 1, 2021 at 7:26 pm

Dish Network is simply not happy with T-Mobile over its plans to shut down a network nonetheless utilized by tens of an entire bunch of a whole lot of Dish’s Improve Mobile prospects. In a letter to the FCC on Thursday, Dish blasted the Bellevue, Wash.-based wi-fi service for what it commonly known as anti-competitive conduct.

Axios first reported on the spat.

Dish acquired Improve as part of the merger between T-Mobile and Sprint, which was achieved a yr beforehand. T-Mobile purchased Sprint’s Improve pay as you go enterprise to Dish as a concession to win federal approval for the deal.

Dish is relying on T-Mobile’s legacy CDMA network experience because of it actually works to assemble out its own 5G network. Nonetheless it ought to reportedly take assorted years to interchange the outdated service and transition almost all of Improve’s 9 million prospects.

Axios reported that Dish was anticipating T-Mobile to shut down the CDMA network in three to five years, nonetheless that date is now wanting further like Jan. 1, 2022.

“All by its earlier life on account of the ‘Un-Service,’ T-Mobile championed insurance coverage protection safety insurance coverage protection insurance coverage insurance policies that promoted opponents, pretty a few spectrum possession, and setting good spectrum use. How shortly components change,” Dish acknowledged in its letter. “Now, T- Mobile opposes measures that may help new entrants and smaller suppliers compete ….”

The letter notes that Verizon, with merely 1% of patrons nonetheless on the legacy tech, isn’t making an attempt to wind down its CDMA service until 2023.

“T-Mobile’s submitting is solely its latest attempt to flex its power to thwart opponents,” Dish’s letter added.

Commerce: T-Mobile responded to Dish’s grievance with an announcement to GeekWire later Thursday:

“The half out of 2G/3G utilized sciences all by the wi-fi enterprise is a pure evolution. In T-Mobile’s case, this transition is essential to the creation of the ultra-high efficiency 5G network we now have devoted to ship for patrons and to the federal authorities. All of us want to guarantee no prospects are left behind, and we’re following a tried and true course of to know that goal.

“Each problem we’re doing right correct proper right here is strictly in response to the settlement that DISH made with us a yr and a half beforehand, and we now have been very proactive and clear concerning the timing for this transition with all of our MVNOs, along with DISH. We gave DISH uncover in October 2020 for a January 1 st 2022 transition – additional of the required 6 month contractual settlement.

“Our settlement with DISH could also be clear that they are liable for migrating Improve prospects, merely as we’re liable for migrating Sprint prospects, and we’re assured that DISH is already planning to take great care of their impacted prospects earlier to the transition date. Given the advance uncover that they acquired, solely a small share of Improve prospects must have to spice up their handsets by the very best of this yr, and often these prospects will in all probability be supported with incentives and promotions to get their handsets upgraded.”