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Dish Network is set to merge with EchoStar, the satellite internet company that operates HughesNet. The merger aims to provide Dish with greater financial flexibility as it establishes itself as a significant competitor in the wireless service industry. Charlie Ergen, co-founder and chairman of both companies, revealed this to The Wall Street Journal. As part of the merger, EchoStar CEO Hamid Akhavan will assume the roles of president and CEO, while Dish CEO Erik Carlson will be leaving the company.

It is worth noting that EchoStar and Dish were formerly part of the same entity under the name EchoStar. However, in 2008, Dish rebranded itself and separated its satellite internet division, which became EchoStar. With this merger, the two companies are being reunited under Ergen’s leadership. Ergen, who stepped down as CEO of Dish in 2017, stated that there are few companies that operate in both the satellite and wireless sectors.

Dish is making a significant shift towards 5G technology as its pay-TV service continues to lose subscribers. In 2020, the company acquired Boost Mobile with the intention of becoming the fourth major wireless service provider in the US. Dish began rolling out its 5G network last year and aims to leverage this merger to achieve its goal. The company recently announced that its wireless service now covers 70% of the US population, fulfilling its commitment to the FCC. However, improvements are still needed, and Dish’s Boost Infinite postpaid cell phone service continues to rely on other networks.

As Ergen holds a majority stake in both companies, the Dish/EchoStar merger can be viewed as consolidating two bank accounts. While the deal does not immediately enhance Dish’s network, the expanded resources from the merger could aid the company in reaching its objectives.

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