Analyst Predicts Dish, T-Mobile & Amazon Super Union

[MikeD-C05]

From the article I will quote for you.

"In January of 2017, the company (Echostar) announced that it had executed an agreement with DISH to exchange its Echostar Technologies(I.e. the set top box business) for the Hughes Retial Group Tracking stock. The transaction was consummated at the end of February. From a purely financial perspective the company gave up a business with $40million of operating income for one with zero profits currently."

So does that mean that DISH now has the set top business that Echostar used to run? If so that means that DISH now has the satellites and the set top business and Sling tv all in one company.

 

[MikeD-C05]

IF you look at the Echostar home page ,they no longer list the set top business , sling players, or even foreign set top boxes. They used to even show the channel master Dvr as one of their products and that is now gone too. So even if the set top business is called Echostar technologies it. looks like DISH is now in control of it all.

www.echostar.com

 

[HobbyTalk]

And so that means that Dish is contracting the manufacturing out to Echostar. The same thing they have done for many many years. On the Echostar web site is says "EchoStar Satellite Services (ESS) is an industry-leading provider of satellite communications infrastructure and solutions to media and broadcast organizations, pay-TV operators, enterprise customers, and U.S. government and military service providers."

Wouldn't you agree that a satellite receiver is part of "satellite communications infrastructure"?

 

[MikeD-C05]

And so that means that Dish is contracting the manufacturing out to Echostar. The same thing they have done for many many years. On the Echostar web site is says "EchoStar Satellite Services (ESS) is an industry-leading provider of satellite communications infrastructure and solutions to media and broadcast organizations, pay-TV operators, enterprise customers, and U.S. government and military service providers."

Wouldn't you agree that a satellite receiver is part of "satellite communications infrastructure"?

The set top business up till this last February, was always run by the second Ergen company Echostar. This included satellite receivers for European countries they made and for Channel Master Dvrs and sling boxes ,etc. So if the business was swapped with the Hughes retail trade stock as I quoted, DISH is now the company over the set top business. So how do they sub contract with Echostar to continue to make the receivers ,if they are now owned by DISH? Wouldn't they be paying themselves to make their own receivers?

 

[bobvick]

The set top business up till this last February, was always run by the second Ergen company Echostar. This included satellite receivers for European countries they made and for Channel Master Dvrs and sling boxes ,etc. So if the business was swapped with the Hughes retail trade stock as I quoted, DISH is now the company over the set top business. So how do they sub contract with Echostar to continue to make the receivers ,if they are now owned by DISH? Wouldn't they be paying themselves to make their own receivers?

You do know that Echostar has never "made" receivers. Even back in the 80's when today's EchoStar was known as "EchoSphere" they only designed receivers and they were manufactured in Japan or Taiwan. At one point in the early days of Dish, they had a contractor that assembled some receivers in Huntsville, Ala. So some of the early EchoStar and (after their acquisition Houston Tracker Systems aka HTS) could have been "assembled" in the USA. But, EchoStar has never had a manufacturing plant where they made equipment.
I suspect all that has changed is Dish Network Corp. has acquired the old EchoStar STB engineering, research, and development department.


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[HobbyTalk]

Wouldn't they be paying themselves to make their own receivers?

This is very common in businesses these days. In many cases different departments within a single business location pays each other. Take your local auto dealer. Each division (new car sales, used car sales, service, financing) are run as separate profit centers. If a used car needs service before it is sold, the service department does the service and the used car division pays the service department for that service.

I used to work in the service center of a major retailer. We had different profit centers within the service center (parts, repair, shipping/receiving). If the repair department needed a part, they went to the parts department, got the part and were charged for that part.

 

[Scott Greczkowski]

I work with EchoStar every day.

Who makes the Hopper 3?


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[comfortably_numb]

Charlie is already reported to be the wealthiest person in Colorado. At his age he should sell and enjoy the fruits of his labor.

Maybe, when the New York and California billionaires aren't visiting Aspen


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[bobvick]

This is very common in businesses these days. In many cases different departments within a single business location pays each other. Take your local auto dealer. Each division (new car sales, used car sales, service, financing) are run as separate profit centers. If a used car needs service before it is sold, the service department does the service and the used car division pays the service department for that service.

I used to work in the service center of a major retailer. We had different profit centers within the service center (parts, repair, shipping/receiving). If the repair department needed a part, they went to the parts department, got the part and were charged for that part.

AT&T and Verizon have taken this one step further. They created wholly owned spinoffs, sold their fully deprecated cell towers to them, then they "lease" them back. The new spinoff gets to expense out the life of the "acquired" towers again, and AT&T and Verizon get to expense the "lease" costs.


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[MikeD-C05]

You do know that Echostar has never "made" receivers. Even back in the 80's when today's EchoStar was known as "EchoSphere" they only designed receivers and they were manufactured in Japan or Taiwan. At one point in the early days of Dish, they had a contractor that assembled some receivers in Huntsville, Ala. So some of the early EchoStar and (after their acquisition Houston Tracker Systems aka HTS) could have been "assembled" in the USA. But, EchoStar has never had a manufacturing plant where they made equipment.
I suspect all that has changed is Dish Network Corp. has acquired the old EchoStar STB engineering, research, and development department.


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Yes, after talking this out with y'all, I have to agree that is what they did. DISH acquired the set top business and now it is all under one roof. So who ever buys DISH -if that happens- will get it all - satellites, receivers and subs.

 

[navychop]

Did I miss where there was no doubt that Echostar sold Dish the actual satellites?

 

[comfortably_numb]

Actually having Amazon as a player in a potential deal doesn't seem like too bad of an idea. Would add the Fire line of devices to the Dish portfolio and give them another platform. Not to mention the fact that Amazon is one of the largest trunks on the backbone of the internet. They really are a powerhouse.


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[HobbyTalk]

Did I miss where there was no doubt that Echostar sold Dish the actual satellites?

No sats involved. Dish Network is acquiring set-top box development, Sling TV technology, software development employees and U.S. satellite TV ground infrastructure from its sister company, Echostar Corp.

 

[MikeD-C05]

So DISH doesn't control any satellites that they use to broadcast their service, but they do own the satellite uplinks and fiber optic backhauls -that they use to load the local channels. But the following article definitely confirms that DISH owns the set top business. Also says that Vivek Khemka will be coming back exclusively to DISH.

www.bizjournals.com/denver/news/2017/01/31/dish-network-echostar-shuffle-assets-to-focus.html

 

[HobbyTalk]

So DISH doesn't control any satellites that they use to broadcast their service, but they do own the satellite uplinks and fiber optic backhauls -that they use to load the local channels. But the following article definitely confirms that DISH owns the set top business. Also says that Vivek Khemka will be coming back exclusively to DISH.

www.bizjournals.com/denver/news/2017/01/31/dish-network-echostar-shuffle-assets-to-focus.html

This is all old news from Jan of this year.

 

[MikeD-C05]

This is all old news from Jan of this year.

It may be old news to you ,but it wasn't to me. That is why I brought it up in this thread. I think it is more than relevant to the discussion at hand in this thread. IF you don't want to read my posts then please put me on ignore. Then you won't have to respond to me at all.

 

[DWS44]

I think we should just go ahead and rename this thread as the official "Watch Mike convince himself who owns the Dish/Echo receiver business" thread.

 

[MikeD-C05]

I think we should just go ahead and rename this thread as the official "Watch Mike convince himself who owns the Dish/Echo receiver business" thread.

Okay . I get it. But I came across the news and I found it interesting who owned the set top business now. Echostar had always had it in the past and now it has moved to DISH's ledger. Making anyone that buys DISH, gets the set top business too, including the Channel Master dvrs you can buy. I also liked knowing that Vivek was coming back to DISH full time. Evidently everyone else already knew this and I was late to the party.

 

[ekilgus]

I read this morning that T-Mobile has entered preliminary talks with Sprint about a merger. Unless this it a diversionary tactic, so much for the Amazon/Dish/T-Mobile thing

 

[comfortably_numb]

I read this morning that T-Mobile has entered preliminary talks with Sprint about a merger. Unless this it a diversionary tactic, so much for the Amazon/Dish/T-Mobile thing

I thought they tried this once and it was shot down by the feds.