Dish Network is set to merge with EchoStar, the satellite internet company behind HughesNet, in a move aimed at enhancing Dish’s financial flexibility as it strives to become a key player in the wireless service industry, according to Charlie Ergen, the co-founder and chairman of both companies.
Following the merger, EchoStar CEO Hamid Akhavan will take on the roles of president and CEO, while Dish CEO Erik Carlson will step down.
Originally, EchoStar and Dish operated as a single entity under the EchoStar name. However, in 2008, the company rebranded as Dish and separated its satellite internet division under the EchoStar brand.
This merger reunites the two entities, both still overseen by Ergen, who stepped down as Dish’s CEO in 2017.
“There are a lot of good companies in satellite and a lot in wireless, but not a lot do both of those things,” Ergen told.
As Dish shifts its focus to 5G, the company has seen a decline in subscribers to its pay-TV service. In 2020, Dish acquired Boost Mobile in an effort to establish itself as the fourth major wireless service provider in the U.S., and it began deploying its 5G network last year.
The company views this merger as a strategic step toward achieving that goal. Recently, Dish announced that its wireless service now covers 70 percent of the U.S. population, fulfilling its commitment to the FCC.
However, the network still requires further development, and Dish’s Boost Infinite postpaid cell phone service continues to rely on other networks.
Given that Ergen owns more than half of both companies, the Dish/EchoStar merger is akin to consolidating two bank accounts.
While the merger doesn’t immediately enhance Dish’s network, the increased resources could play a crucial role in future improvements.
