In a move that has not only been long been expected but also shows clearly the direction of travel of the current satellite industry, DISH Network and EchoStar have announced that they have entered into a definitive agreement to recombine to create a global connectivity company.
EchoStar became a spin-off of DISH Network in 2008 to focus on satellite data services and the merger combines DISH Network's satellite technology, streaming services and nationwide 5G network with EchoStar's premier satellite communications solutions. This will not only provide the DISH entity with not only premier wireless, satellite and video distribution capabilities but also a pathway to take better advantage of the burgeoning 5G communications sector in the US, mirroring the actions of rivals such as SES.
DISH's 5G wireless network now covers more than 70% of the US with full commercialisation underway and the successful launch of EchoStar's JUPITER 3 satellite with available capacity for converged terrestrial and non-terrestrial services. The combined company says it will be well-positioned to deliver a broad set of communication and content distribution capabilities, accelerating the delivery of satellite and wireless connectivity solutions desired by customers.
The combined company will be headquartered in Englewood, Colorado. It will go to market worldwide under a suite of proven consumer and business brands, including DISH Wireless, Boost Wireless, Sling TV and DISH TV, as well as EchoStar, Hughes and JUPITER satellite services, HughesON managed services and HughesNet satellite internet.
"This is a strategically and financially compelling combination that is all about growth and building a long-term sustainable business," said Charles Ergen, who will become chairman of the board of both DISH Network and EchoStar.
"DISH's substantial past investments in spectrum and its wireless buildout, combined with EchoStar's recent launch of JUPITER 3, are expected to significantly reduce near-term CAPEX requirements. The transaction is expected to generate significant cost and revenue synergies, and the strong asset portfolio of the combined company paired with its enhanced free cash flow generation capability and strengthened capital structure are expected to drive long-term value creation for our shareholders and other stakeholders."
DISH's 5G wireless network now covers more than 70% of the US with full commercialisation underway and the successful launch of EchoStar's JUPITER 3 satellite with available capacity for converged terrestrial and non-terrestrial services. The combined company says it will be well-positioned to deliver a broad set of communication and content distribution capabilities, accelerating the delivery of satellite and wireless connectivity solutions desired by customers.
The combined company will be headquartered in Englewood, Colorado. It will go to market worldwide under a suite of proven consumer and business brands, including DISH Wireless, Boost Wireless, Sling TV and DISH TV, as well as EchoStar, Hughes and JUPITER satellite services, HughesON managed services and HughesNet satellite internet.
"This is a strategically and financially compelling combination that is all about growth and building a long-term sustainable business," said Charles Ergen, who will become chairman of the board of both DISH Network and EchoStar.
"DISH's substantial past investments in spectrum and its wireless buildout, combined with EchoStar's recent launch of JUPITER 3, are expected to significantly reduce near-term CAPEX requirements. The transaction is expected to generate significant cost and revenue synergies, and the strong asset portfolio of the combined company paired with its enhanced free cash flow generation capability and strengthened capital structure are expected to drive long-term value creation for our shareholders and other stakeholders."
