CEO of Dish Network, Charlie Ergen recently said that a deal that swaps assets between Dish Network and their sister company, EchoStar, will set up the satellite TV business for many mergers that is expected in the mobile internet and television industries. Ergen was speaking on a conference call that discussed the quarterly financial earnings and results of Dish Network. He also shed some light on the reasons for the deal between EchoStar Corp. and Dish Network that was announced last month.
It is reported that Dish Network is acquiring the satellite ground infrastructure, technology development, and TV set-top building operations of EchoStar. In addition, Dish Network will have total ownership and control of the streaming service, Sling TV after the merger.
The main business of EchoStar will be owning and maintaining satellites, and selling the services of their Hughes Communications subsidiary. “It made more sense for Dish to be in control of its own destiny, and Hughes can focus on where they want to be,” Ergen said.
Charlie Ergen is the founder, Chairman, and controlling shareholder of both Dish Network and EchoStar Corp., as both of them was a single company before the spinoff of January 2008. Major players in the satellite TV and cable businesses were unable to discuss merger and acquisition deals for many months owing to the anti-collusion rules related to the U.S. Federal Communications Commission auction of mobile internet spectrum that is sold by the broadcast TV businesses and stations.
It is expected that the anti-collusion rules will be lifted by the month of April. The telecommunication business have been busy with speculations about attempts to merge Washington-based T-Mobile, and Kansas-based Sprint Corp or the New York based Verizon and Dish Network. One of the best internet providers in the US, Charter Communications, and cable TV company, Comcast Corporation, are also exploring the possibilities to have a wireless internet service of their own. It is reported that Comcast and Charter have also discussed potential mergers to offer the best internet service in the country.
Ergen has also tried to make deals with T-Mobile and Sprint in the years 2013 and 2014, with an aim to start wireless internet services, on the many unused frequencies worth millions of dollars, which Dish Network has acquired over the years.