Charlie Ergen, CEO of DISH Network, is reportedly in the “formative stages” of merger talks with wireless services provider T-Mobile. If a deal gets done, it might be one of the largest examples of trickle-up corporate welfare in recent memory.
Ergen’s company is currently under investigation by the Senate Committee on Commerce, Science, and Transportation for allegations that it colluded with other bidders in a recent FCC spectrum auction to win $13.3 billion worth of spectrum at a discounted price. DISH won the spectrum licenses through winning bids submitted by subsidiaries SNR Wireless and Northstar Wireless. Since the smaller subsidiary groups submitted the winning bids, they qualified for a 25 percent “designated entities” discount (a discount meant for “very small businesses”) even though these groups are 85 percent owned by DISH.
