By Phillip Swann
The TV Answer Man –@tvanswerman
Dish Chairman Charlie Ergen this month flew to Dubai to seek investors for his financially strapped satellite TV company, the New York Post’s Lydia Moynihan reports in an article published yesterday.
The company has lost millions of satellite subscribers over the last several years and Ergen has invested heavily in a plan to build a 5G wireless network that would serve 70 percent of the United States by the summer. However, the 5G plan has stalled and the FCC could force Ergen to give up the 5G spectrum he spent billions on in government auctions.
“The problem for Dish is the company must spend billions to build out the 5G network at the same time it is hemorrhaging customers on (satellite),” Moynihan writes.
Click to see Amazon’s latest discounts on Sports and Outdoors products.
During the company’s first quarter earnings call, Ergen this month acknowledged that Dish has a sizable debt. But he said the company has faced similar problems since its launch decades ago and it has always found a solution.
But the Post quotes one anonymous industry official as saying this situation could be different.
“They need a white knight to save them from their financial situation,” the source told the newspaper. “Otherwise they’ve got to be considering all options — including bankruptcy.”
S&P Global Ratings recently said Dish’s financial position “may be unsustainable long term.”
Click to see Amazon’s new discounts on Home products.
Dish could seek an extension from the FCC on building the 5G network. The Post writes that Ergen has been seen recently in the agency’s headquarters in Washington, D.C.
Ergen hinted late last year that a merger with its satellite rival, DIRECTV, could be in the works. But it’s unclear if Dish’s current financial crisis would make that more or less likely.
Have a question about new TV technologies? Send it to The TV Answer Man at swann@tvanswerman.com Please include your first name and hometown in your message.
— Phillip Swann
@tvanswerman
It is hard to understand why there has been no merger between Direct TV and DISH since there is only room for one satellite company in today’s market.
The New York post is a second rate tabloid, run by conservative trolls, they haven’t been a news source in a very long time.
unlike the Times (rymes with Slime, which is what they print. fake news nd lies, downright lies run by liberal crooks
Could be a blessing for Directv. Dish declares bankruptcy. Subscribers leave Dish for Directv causing Dish to shut down satellite TV service and Directv picks up millions of subscribers. May be wishful thinking but beats the heck out of Ergen getting control of Directv.
That is one way to look at it,
BUT then there is NO Satellite Competition allowing
DirecTV to RAISE the INSANE Prices even HIGHER.
You think Ergen is Bad,
LOOK at Bad ASS AT&T and what they did to DirecTV.
If they are in that much trouble, how could they afford a new satellite?
Sorry, forgot to add the link.
https://spacenews.com/maxar-secures-dish-network-order-in-its-first-satellite-contract-of-2023/