ish Network Corporation, the second- largest United States satellite-TV provider, rose as much as 7.1 per cent after awarding a special dividend that allayed investors concerns the company will invest billions in a wireless network. Dish said on Monday it will pay a non-recurring dividend of $2 a share on December 1. The company last paid a special dividend two years ago. The payment suggests that Dish may not invest in or build a wireless network for mobile content, analysts including Sanford C. Bernstein & Companys Craig Moffett said. "The return of cash to shareholders signals that Ergen isnt going to hoard cash to build his wireless field of dreams," New York-based Moffett said in a note to clients. Chairman Charlie Ergen purchased Blockbuster LLC, DSBD North America Incorporated and Terrestar Networks Incorporated this year, gaining capabilities that may allow him to offer new services including Internet video for mobile devices. Dish asked the Federal Communications Commission for licence waivers to build a network in August. The dividend "supports our view that Dish will not make a large investment in wireless, something that many Dish bears believe," Bryan Kraft, an analyst at Evercore Partners in New York, Bryan Kraft, said. Dish rose by 82 cents, or 3.5 per cent, to $24.30 at 10.11am New York time after climbing as high as $25.15. The shares had risen by 19 per cent this year before Monday. Earnings per share rose to 71 cents from 55 cents a year earlier, as sales increased 12 per cent to $3.6bn, the Englewood, Colorado-based company said. Analysts projected earnings of 74 cents on sales of $3.63bn, the average estimates compiled by Bloomberg. Dish lost 111,000 customers, more than the 81,000 nine analysts projected on average. Ergen is trying to shed Dishs image as a low-cost television provider and may accept losses if it can attract customers willing to buy more expensive packages and products, said Matthew Harrigan, an analyst at Wunderlich Securities in Denver. "This is a transitional quarter, and I think Charlie doesnt particularly care about the stock price," said Harrigan, who has a "hold" rating on Dish. "The only way he starts caring is if he goes out and starts trying to do more deals. At some point, the stock price does start to matter again because it affects what he can do in the debt markets as well." The subscriber decline compares with DirecTVs 327,000 increase in US customers last quarter. DirecTV, the largest US satellite-TV provider, offered its customers free access to all Sunday NFL games. Dish doesnt own the same NFL rights. Investors will be curious to hear if Chief Executive Officer Joseph Clayton reveals details about Dishs wireless strategy on the companys conference call on Monday, Harrigan said. Dish has said little about long-term plans to integrate its acquisitions, Harrigan said. Clayton has said more deals and partnerships are likely still to come. In May, Ergen said Dishs strategy was like an episode of "Seinfeld," with all the parts coming together at the end. Dish said on Monday it would pay Sprint Nextel Corporation $114m as part of a settlement of a dispute that stemmed from the purchases of DBSD North America and TerreStar, which Dish bought out of bankruptcy. Net income last quarter increased by 30 per cent to $319m from $245m a year earlier.
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