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Dish Network has announced its merger with EchoStar, the satellite internet company responsible for HughesNet. This strategic move aims to provide Dish with greater financial flexibility as it strives to establish itself as a prominent player in the wireless service industry. Charlie Ergen, co-founder and chairman of both companies, highlighted the merger’s purpose in an interview with The Wall Street Journal. After the merger, Hamid Akhavan, CEO of EchoStar, will assume the role of president and CEO, while Dish CEO Erik Carlson will depart.

Both EchoStar and Dish were once part of the same organization operating under the EchoStar name. In 2008, the company rebranded as Dish and spun off its satellite internet division as EchoStar. The current merger reunites these two entities under the purview of Ergen, who stepped down as Dish’s CEO in 2017. Ergen emphasized the uniqueness of combining satellite and wireless expertise, stating that few companies possess proficiency in both areas.

Dish Network is undergoing a shift to prioritize 5G technology due to the decline of its pay-TV service subscriber base. In 2020, the company acquired Boost Mobile in an effort to become the fourth major wireless service provider in the US. Dish began rolling out its 5G network last year and expects this merger to bolster its progress towards this goal. It recently announced that its wireless service now covers 70% of the US population, fulfilling its commitment to the FCC. However, further network improvements are necessary, and Dish’s Boost Infinite postpaid cell phone service currently relies on other networks.

Given Ergen’s majority ownership in both Dish and EchoStar, the merger between the two companies can be likened to consolidating two bank accounts. While the deal does not directly enhance Dish’s network capabilities, the combined resources are expected to support future advancements.

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