Echostar Sells Dish Network to Focus on 5G Network

WASHINGTON, Sep. 30, 2024 - A deal announced Monday for DirecTV to acquire satellite pay-TV rival Dish Network from EchoStar Corp. will set the stage for EchoStar to focus on the expansion of its 5G network capabilities, the companies said.

EchoStar, headquartered in Colorado, is exiting the traditional pay-TV business as a result of the agreement with DirecTV. EchoStar noted in a press release that the sale aimed to increase DirecTV’s ability to compete with dominant pay-TV service programmers and operators as well as accelerate EchoStar's deployment of wireless capabilities across the nation.

EchoStar said the deal would benefit consumers. 

EchoStar noted that, by divesting Dish, it would be able to use its resources to enhance and further deploy its 5G open RAN wireless network. It said that the further development of this network would provide more choices and better service to consumers, while also driving innovation.

The sale announcement stipulated that $5.1 billion would be raised from certain Dish supporting investors for investment in EchoStar’s nationwide open RAN 5G network through the purchase of EchoStar secured notes maturing in 2029. The funding would significantly improve EchoStar’s ability to build out its network, according to the announcement.

Open RAN technology enables operators to scale their networks up or down through the separation of hardware and software supply chains, thereby reducing the cost of network deployment and encouraging competition.

"Today's strategic actions will advance our ability to aggressively compete in the U.S. wireless market,” said Hamid Akhavan, President and CEO of EchoStar. “With an improved financial profile, we will be better positioned to continue enhancing and deploying our nationwide 5G Open RAN wireless network.”

Both EchoStar and DirecTV noted that they expected to be better positioned to invest, innovate and serve their respective customers as a result of the sale.

The transaction was approved by the boards of directors for both companies and is expected to close in the fourth quarter of 2025 pending required regulatory approvals.