Dish Network (NASDAQ:DISH) has become the first U.S. company fined by the FCC’s (Federal Communications Commission) Enforcement Bureau for polluting space. The FCC said that DISH, which provides television entertainment with its satellite DISH TV and streaming SLING TV services, failed to deorbit its EchoStar-7 satellite properly and has mandated that the company pay a penalty of $150,000.
According to the FCC’s inquiry, Dish Network violated the terms of its license by decommissioning the EchoStar-7 satellite into a disposal orbit significantly below the elevation stipulated in its license terms. Disposing the satellite to a lower altitude gave rise to potential worries regarding orbital debris, bringing it uncomfortably close to the zone designated for operational satellites.
While the FCC fined Dish Network, the company is focused on its merger with EchoStar (NASDAQ:SATS). On August 8, DISH Network announced that it was combining with EchoStar Corporation in an all-stock merger. The transaction is expected to create significant cost and revenue synergies. Following the completion of the merger, existing DISH Network shareholders will own approximately 69% of the combined company, and existing EchoStar Corporation shareholders will own about 31%. Further, the transaction is expected to close by year-end.
As the company has already entered into a merger agreement, it remains a wait-and-watch story as to what analysts recommend for the combined company. Nevertheless, the leadership of both companies maintains a positive outlook, expressing confidence that the combination of Dish Network and EchoStar will enhance their wireless network business and provide greater financial flexibility.
Meanwhile, on a standalone basis, Dish Network stock has a Moderate Buy consensus rating, reflecting four Buy, five Hold, and one Sell recommendations.
