Potential Dish and T-Mobile merger is trickle-up corporate welfare

Published July 6, 2015 4:01am ET



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.

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