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CNBC Exclusive: CNBC Transcript: Dish Chairman & CEO Charlie Ergen Speaks with CNBC’s David Faber on “Squawk on the Street” Today

WHEN: Today, Thursday, May 14th

WHERE: CNBC's "Squawk on the Street"

Following is the unofficial transcript of a CNBC EXCLUSIVE interview with Charlie Ergen, Dish Chairman & CEO, on CNBC's "Squawk on the Street" (M-F, 9AM-11AM ET) today. Following are links to the interview on CNBC.com: http://video.cnbc.com/gallery/?video=3000379511 and http://video.cnbc.com/gallery/?video=3000378205.

All references must be sourced to CNBC.

DAVID FABER: THANK YOU VERY MUCH. WE ARE HERE LIVE IN PHOENIX WITH YOU'RE STILL CHAIRMAN ALSO? CHAIRMAN AND CEO.

CHARLIE ERGEN: YES. I HAVE A FEW TITLES.

FABER: IT IS LIKE A THROWBACK THURSDAY WE'RE SAYING CHARLIE ERGEN OF COURSE IS OUR GUEST AND YOUR SHIRT IS OLD AS WELL , APPARENTLY, BACK FROM WHEN YOU WERE CEO ORIGINALLY.

ERGEN: THAT'S RIGHT. I USED TO DO A MONTHLY SHOW FOR OUR CUSTOMERS CALLED "CHARLIE CHAT" AND I WOULD WEAR THIS SHIRT. WE ARE TRYING TO SAVE MONEY FOR SHAREHOLDERS. AND APPARENTLY I DON'T HAVE A NEW ONE.

FABER: WELL WE CAN DO OUR OWN CHARLIE CHAT HERE. I GUESS I WOULD LIKE TO START WITH THE DISH NETWORK ITSELF. WE WANT TO GET TO TALKING ABOUT SPECTRUM AND EVERYTHING. THE NUMBERS THEMSELVES EXCUSE ME DOWN 134,000 SUBSCRIBERS. ABOUT 13.84 MILLION OVERALL. CHURN WAS UP. TO THOSE WHO WOULD SAY THIS BUSINESS IS CERTAINLY PEAKED AND YOU ARE GOING IN THE WRONG DIRECTION, IS THERE ANYTHING YOU CAN DO TO ARREST THAT?

ERGEN: I THINK THERE'S EXTENUATING CIRCUMSTANCES IN OUR PARTICULAR NUMBERS. WE DID HAVE TO TAKE DOWNS OF SOME TURNER BROADCASTING CHANNELS LATE IN THE YEAR AND THEN FOLLOWED QUICKLY BY THE FOX NEWS CHANNEL BEING TAKEN DOWN. THAT DID NEGATIVELY AFFECT OUR NUMBERS. BUT I THINK OVERALL THE INDUSTRY WAS DOWN A LITTLE BIT IN TERMS OF NUMBERS, WHICH I THINK IS THE FIRST TIMEIN THIS QUARTER THAT THE INDUSTRY HAS BEEN NEGATIVE. I THINK THE TRENDS THAT WE SAW THREE, FOUR YEARS AGO CONTINUE IN THE SENSE THAT THE YOUNGER GENERATION IS NOT REALLY PAYING FOR TV EXACTLY THE SAME WAY WITH HUNDREDS OF CHANNELS WHICH THEY ONLY WATCH A FEW. EVEN SOME OF THE PEOPLE THAT ARE TRADITIONAL PAY TV CUSTOMERS ARE BECOMING CORD CUTTERS ARE SKIMMING DOWN THEIR PACKAGES. THERE ARE FUNDAMENTAL SHIFTS IN THE VIEWING PATTERNS.

FABER: WHAT CAN YOU DO TO CHANGE THAT?

ERGEN: THE BIGGEST THING WE HAVE DONE IS LAUNCHED SLING TV, WHICH IS NOT IN THE NUMBERS BY THE WAY.

FABER: YOU ARE NOT GIVING US ON SLING TV AT THIS POINT

ERGEN: WE HAVEN'T GOTTEN NUMBERS. HAD WE PUBLISHED SLING NUMBERS AND HAD PEOPLE LIKE CBS PUBLISH THEIR NUMBERS AND HBO NOW AND SO FORTH, I THINK THE NUMBERS PROBABLY WOULD BE POSITIVE AND PROBABLY.

FABER: IN TERMS OF ADDITIONS TO THOSE WHO ARE ACTUALLY WATCHING. OBVIOUSLY SLING IS YOUR OVER THE TOP PRODUCT, $20 A MONTH AND TALKING ABOUT OTHERS THAT COME FROM THE LIKES OF CBS AND HBO. SONY HAS ONE COMING AS WELL.

ERGEN: EXACTLY RIGHT. SO WHAT HAPPENS IS WHEN YOU LOOK AT THE MODEL IN OUR PERSPECTIVE, DO YOU SPEND $800 OR $900 TO ACQUIRE A CUSTOMER IN THE TRADITIONAL MODEL OR CAN YOU SPEND PROBABLY LESS THAN $100 TO ACQUIRE CUSTOMERS WITH SOMETHING LIKE SLING TV. WHEN YOU LOOK AT THE MODEL WHEN YOU LOOK AT THE ECONOMICS, WE SEE A SHIFT IN PERHAPS WHERE YOU MIGHT GET A RETURN FOR YOUR MONEY LONG TERM.

FABER: YOU ALSO ON THE CALL TALKED ABOUT TRADITIONAL CUSTOMERS AND APPROACHED PERHAPS DIFFERENTLY THAN YOU ARE GOING TO TAKE THAN YOUR PREVIOUS CEO JOE CLAYTON, IN TERMS OF FOCUSING ON PEOPLE WITH BETTER CREDIT HISTORIES OR PEOPLE THAT WILL BE LONG-TERM CUSTOMERS, CORRECT.

ERGEN: WELL IT'S A VERY COMPETITIVE INDUSTRY FOR THE TRADITIONAL BUNDLE. TYPICALLY MOST CUSTOMERS HAVE FOUR POTENTIAL OFFERINGS, THEN HAVE MULTIPLE OFFERINGS ON OVER THE TOP. THE MODEL OF ARE YOU GOING TO KEEP A CUSTOMER THE NEXT TEN YEARS? PROBABLY DOESN'T EXIST ANYMORE BECAUSE THE CUSTOMER HAS SO MANY OPTIONS TO GO AND THE TECHNOLOGY KEEPS CHANGING SO WHEN YOU DON'T KEEP THE CUSTOMERS LONG YOUR MODEL CHANGES WHO YOU MIGHT TAKE ON AS A CUSTOMER AND YOU CERTAINLY NEED A HIGHER PAYING CUSTOMER AND HIGHER CREDIT CUSTOMER. IN OUR PARTICULAR CASE, WE PREFER TO HAVE CUSTOMERS IN MORE RURAL AMERICA WHERE OUR BASE IS AND WHERE THERE IS A LITTLE BIT LESS COMPETITION.

FABER: HOW ABOUT YOUR ADVERTISING? I ONLY MENTION THAT BECAUSE I THINK DIRECT AND I THINK OF THAT REALLY NICE LOOKING LADY AND THE TALKING HORSE AND ALL OF THEIR OTHER ADS AND THEN I THINK OF DISH. I CAN'T COME UP WITH WHAT YOUR AD CAMPAIGN IS.

ERGEN: WELL I THINK THAT IS PROBABLY NEGATIVE FOR OUR CAMPAIGN THAT YOU CAN'T REALY THINK ABOUT WHAT IT IS. I THINK WE REALLY HAVE TO STAND FOR SOMETHING. I THINK WE GIVE THE CUSTOMER BETTER VALUE. IT IS FUNNY BECAUSE TV IS RELATIVELY A COMMODITY. THERE IS NO DIFFERENCE BETWEEN ESPN ON DISH AND ESPN ON DIRECTV, YET PEOPLE WILL TYPICALLY PAY ABOUT $20 MORE A MONTH FOR DIRECTV. IT'S SOMETHING WE'VE GOT TO WORK ON TO MAKE SURE FROM A BRANDING PERSPECTIVE WE DO A BETTER JOB.

FABER: BUT GIVEN OVERALL THE TRENDS THAT WE ARE SEEING AND OBVIOUSLY IT IS NOT JUST DISH OR DIRECT, IT'S CABLE OVERALL. AT&T IS BUYING DIRECTV. YOU GUYS CAME OUT AND ASKED FOR SOME CONDITIONS TODAY BUT THE DEAL IS GOING TO LIKELY HAPPEN. WHEN YOU THINK ABOUT IT FROM THE STRATEGIC RATIONALE OF AT&T, DOES IT MAKE SENSE TO YOU?

ERGEN: I THINK IT DOES.

FABER: YOU DO?

ERGEN: I DO I THINK IT DOES. THEY GET SCALE AND VIDEO. VIDEO IS GOING TO BE A BIG PART OF WHAT THEY DO IN THEIR WIRELESS NETWORKS. THEY GET INTERNATIONAL BUSINESS IN LATIN AMERICA WHERE THEY WILL PROBABLY COME FOLLOW THAT ON WITH WIRELESS AND CERTAINLY IN MEXICO THEY MADE A MOVE THERE. IT DOES MAKE SENSE. FOR EVERYTHING YOU DO, THERE ARE TYPICAL REACTIONS TO THAT AND DEPENDING ON HOW OTHER COMPETITORS REACT TO THAT WILL REALLY DEPEND ON HOW WELL THAT DEAL SHAKES OUT.

FABER: DO YOU SEE THEM BECOMING A TOUGHER COMPETITOR FOR YOU? THE SAME OR PERHAPS SOME DISLOCATIONS AS A RESULT OF THE DEAL WHEN IT CLOSES? IF IT CLOSES/

ERGEN: I THINK THEY WILL BE A TOUGHER COMPETITOR. THERE WILL BE SOME DISLOCATIONS HERE AND THERE, BUT OVERALL WILL BE A MUCH TOUGHER COMPETITOR.

FABER: WHY?

ERGEN: BECAUSE THEY HAVE SCALE. THEY WILL BE THE LARGEST MPVD. THEY'VE GOT BROADBAND IN LARGE PARTS OF THE COUNTRY. AND THEY HAVE A NATIONWIDE WIRELESS NETWORK. THEY FUNDAMENTALLY HAVE MOST OF THE CORE INGREDIENTS THEY NEED.

FABER: HOW IMPORTANT IS SLING TV TO THE FUTURE OF YOUR VIDEO BUSINESS?

ERGEN: I THINK IT'S PRETTY IMPORTANT. IF YOU WANT TO GET A LOT OF THE NEW PEOPLE WHO AREN'T PAYING FOR TV TODAY ARE THE PEOPLE PAYING FOR NETFLIX OR HULU, BUT NOT PAYING FOR THE TRADITIONAL BUNDLE, YOU ARE GOING TO WASTE YOUR MARKETING DOLLARS TRYING TO GO AFTER THEM FOR THE BIG BUNDLE. GO AFTER WHAT THEY KNOW, WHAT THEY LIKE. SLING TV DOES A COUPLE OF THINGS ONE IT GIVES CUSTOMERS A LOWER PRICE FOR A LOT OF REALLY GOOD CHANNELS, PARTICULARLY SPORTS. IT ALSO GIVES THEM, IT TAKES AWAY PAIN POINTS. YOU DON'T HAVE A TWO YEAR CONTRACT. YOU CAN GO ON FOR A MONTH, OFF A MONTH, GO ON VACATION, QUIT PAYING, GO BACK ON YOU CAN DO EVERYTHING THROUGH THE INTERNET. THE TV IS ALWAYS ON. WORKS ON ALL YOUR DEVICES IT WORKS ANYWHERE THAT YOU ARE. IT ELIMINATES SOME OF THOSE PAIN POINTS YOU HAVE WITH THE TRADITIONAL MODEL AS WE KNOW IT.

FABER: AT WHAT POINT WILL YOU START GIVING INVESTORS INFORMATION ON HOW WELL THAT SERVICE IS DOING?

ERGEN: THERE IS A GOOD CHANCE WE'LL RELEASE NUMBERS NEXT QUARTER. IT HAS TO BE ENOUGH.

FABER: IT HASN'T BEEN A YEAR. WHEN DID IT START?

ERGEN: IT STARTED FEBRUARY. WE ARE IN OUR THIRD MONTH. WE ARE LEARNING A LOT. WE ARE NOT PERFECT YET. WE STILL HAVE TECHNICAL ISSUES.

FABER: I'VE READ THERE HAVE BEEN OUTAGES.

ERGEN: LIVE TV IS REALLY HARD. IF YOU MISS THE LAST MINUTE OF THE BALLGAME, YOU ARE GOING TO HEAR ABOUT IT. WE ARE ON DOZENS OF DEVICES. EACH ONE HAS DIFFERENT PROCESSORS DIFFERENT CODINGS AND SO FORTH. WE ARE INSERTING DYNAMIC AD INSERTION FOR COMMERCIALS AND WORKING WITH DISNEY AND DEVELOPING THAT TECHNOLOGY. THAT'S REALLY HARD. EVERY PROGRAMMING CONTRACT IS DIFFERENT. WE HAVE MULTIPLE STREAMS IN SOME CONTRACT. ONE STREAM WITH DISNEY. WE LOOK BACK RIGHTS ON SOME, NOT LOOKBACK RIGHTS, WE CAN PAUSE IN SOME. WE HAVE TO GET IT MORE CONSISTENT SERVICE.

FABER: BUT AS WE SEE THE PROLIFERATION OF THESE OVER-THE-TOP PRODUCTS, AND VERIZON, OF COURSE, IS COMING WITH ONE FAIRLY SOON.

ERGEN: YES.

FABER: THEY JUST DID THE AOL DEAL, OR ANNOUNCED IT THE OTHER DAY. WHAT IS GOING TO DIFFERENTIATE SLING TO THE EXTENT THAT YOU BELIEVE IT WILL BE SUCCESSFUL FROM EVERYTHING ELSE THAT IS COMING AT THESE CORD CUTTERS OR CORD NEVERS, SO TO SPEAK?

ERGEN: YEAH, I THINK WE WILL TRY TO GIVE CUSTOMERS WHAT THEY WANT. WE WILL GIVE THEM A CORE PACKAGE, WE WILL GIVE THEM A LOT OF FLEXIBILITY TO ADD ON TO THAT. WE HAVE TO BE TECHNICALLY SUPERIOR TO WHAT OTHER PEOPLE OFFER. AND I THIINK WE HAVE TO WORK ON MORE DEVICES. SO IT'S NOT JUST ABOUT HAVING AN OVER-THE-TOP SERVICE, YOU'VE GOT TO WORK ON ALL THESE DEVICES OUT THERE.

FABER: RIGHT. EVERYWHERE.

ERGEN: YEAH. MULTIPLE TVs, YOU'VE GOT TO BE iOS, YOU'VE GOT TO BE ROKU, YOU'VE GOT TO BE ANDROID. YOU'VE GOT TO BE EVERYTHING.

FABER: YEAH. LET'S MOVE ON TO SPECTRUM IF WE CAN. WHICH IS WHERE SO MANY OF THE QUESTIONS OF COURSE TYPICALLY COME FOR YOU AND CONTINUE TO. FIRST OFF, VERIZON, AT&T, EVEN THE FCC NOW ARE NOT HAPPY WITH OR AT LEAST TAKING A CLOSE LOOK AT THE WAY YOU WENT ABOUT BUYING $13.3 WORTH OF SPECTRUM FOR $10 BILLION AT THE AWS-3 AUCTIONS. YOU USED DESIGNATED ENTITIES, YOU CONTROLLED THEM SO TO SPEAK, 85% OF THE OWNERSHIP. THEY WERE BIDDING, SEEMINGLY AGAINST EACH OTHER IN SOME MARKETS ON THE SAME SPECTRUM AND THEY SAY THAT IS NOT FAIR, THAT IS NOT RIGHT, YOU SHOULD BE PENALIZED, YOU SHOULDN'T BE ABLE TO USE IT.

ERGEN: WELL, I THINK VERIZON HAS BEEN OUR LARGEST CRITIC. ALTHOUGH IRONICALLY, THEY DIDN'T FILE ANY FORMAL COMMENTS AGAINST THE MERGER. IN FACT, THERE WERE ONLY A COUPLE OF COMPANIES THAT HAD STANDING THAT ACTUALLY FILED FORMAL COMMENTS THIS WEEK. BUT IN GENERAL, YES, I THINK THE BIGGEST ISSUE HAS BEEN – KIND OF THE HEADLINE HAS BEEN – THE DISH AND DEs. AND WE DON'T CONTROL THE DEs. WE DON'T HAVE DE FACTO OR DE JURE CONTROL OF THOSE DEs BASED ON THE STRUCTURE THAT WE HAVE. GOT A $3 BILLION DISCOUNT AND THE BIG HEADLINE IS WELL, THAT IS A LOSS TO THE TAX PAYER. AND THAT IS A PRETTY EASY HEADLINE IF YOU LOOK AT IT ON A VERY SUPERFICIAL LEVEL. BUT THE OTHER SIDE OF THAT, THE PEOPLE WHO REALLY KNOW ABOUT AUCTIONS AND THE PEOPLE WHO REALLY UNDERSTAND THESE THINGS, AND ACTUALLY TAKE A CLOSER LOOK AT IT, REALIZE THIS AUCTION GENERATED $20 TO $25 BILLION MORE FOR THE U.S. TREASURY IN TERMS OF VALUE. MOST PEOPLE THOUGHT THIS AUCTION WOULD BE $10, $15, MAYBE $20 BILLION.

FABER: A FEW SAW IT REACHING $45 BILLION.

ERGEN: NOBODY SAW IT REACHING $45 BILLION. SO I THINK ANALYSTS IN GENERAL, ARE THAT THE DE STRUCTURED THAT WAS IN THIS AUCTION AND DISH'S PARTICIPATION, PROBABLY INCREASED THE VALUE OF THIS AUCTION BECAUSE IT WAS THE FIRST COMPETITIVE AUCTION WHERE AT&T AND VERIZON DIDN'T CONTROL EVERYTHING. RAISED THE VALUE ABOUT $20 BILLION OR $25 BILLION. SO WE TAKE THE $3 BILLION DISCOUNT OFF THAT. DO THE MATH. SOMEWHERE BETWEEN $15 AND $20 BILLION THE TAXPAYER MADE MORE BECAUSE OF OUR PARTICIPATION AND BECAUSE OF DE PARTICIPATION. THERE WERE 19 DE COMPANIES. SO ALL IN ALL, I THINK WHEN YOU REALLY STUDY THE MATTER, THE TREASURY MADE WAY MORE MONEY.

FABER: AND YOU SPENT A GREAT DEAL OF TIME PREPARING FOR YOUR STRATEGY HERE. DO YOU THINK YOU WILL PREVAIL, THOUGH, WHEN ALL OF THESE REVIEWS ARE COMPLETED AND THE FCC WILL ALLOW IT TO STAND?

ERGEN: YES, I DO. AND LET ME JUST MAKE ONE MORE POINT. THE DE STRUCTURE HAS BEEN ATTACKED MANY TIMES. IT'S BEEN AROUND SINCE 1994. IT HAS BEEN ATTACKED MANY TIMES. THE DE DISCOUNT HAS BEEN ATTACKED MANY TIMES. 100% OF THE COMMISSIONERS, ALL FIVE OF THE FCC COMMISSIONERS CHOSE THE RULES FOR THIS PARTICULAR AUCTION. AND THEY CHOSE NOT TO LIMIT THE AMOUNT OF DISCOUNT A DE COULD GET. SO A DE COULD GET A $1 DISCOUNT OR A DE COULD GET A $10 BILLION DISCOUNTS. THE RULES CLEARLY STATED THAT THERE WAS NO – AND THE FCC CHOSE NOT TO DO THAT. UNANIMOUS BY THE FCC. SO I DON'T BELIEVE YOU CAN CHANGE THE RULES AND MOVE THE GOAL POSTS AFTER THE AUCTION. SO I THINK WE FOLLOWED THE RULES. I THINK THERE ARE SOUR GRAPES ON PEOPLE WHO, PERHAPS A VERIZON NOW SITS BACK AND SAYS, OH, WE DON'T HAVE THE FASTEST NETWORK. T-MOBILE HAS THE FASTER NETWORK THAN WE DO TODAY. WE LOST CUSTOMERS IN THE FIRST QUARTER.

FABER: T-MOBILE HAS A FASTER NETWORK THAN VERIZON?

ERGEN: T-MOBILE – I'VE SEEN THREE STUDIES. AND ALL THREE OF THOSE STUDIES SHOW THAT T-MOBILE HAS A FASTER NETWORK THAN VERIZON.

FABER: WHAT IS THIS LOVE AFFAIR GOING ON BETWEEN YOU AND JOHN LEGERE? EVERYTIME WE HAVE HIM ON, HE IS ALWAYS HAPPY TO SAY NICE THINGS ABOUT YOU. AND YOU SEEM TO BE HAPPY TO SAY NICE THINGS ABOUT HIM. WHY IS THAT?

ERGEN: WELL BECAUSE I THINK WE LIKE WHAT HE IS DOING. HE HAS BUILT A BRAND, NOT ONLY OF T-MOBILE, THEY ARE TAKING ON THE BIG GUYS. THEY ARE ATTACKING THE PAIN POINTS TO THE CONSUMER. AGAIN CONTRACT, ROLL-OVER DATA, INTERNATIONAL ROAMING. AND THAT IS STRIKING A CORD. AND IT'S A PRETTY IMPRESSIVE TURNAROUND. AND SO WE ARE INNOCENT BYSTANDERS AS WE LOOK AT THAT. BUT WE THINK THAT IS PRETTY IMPRESSIVE.

FABER: BUT YOU HAVE ALMOST AS MUCH SPECTRUM AT DISH AS THEY DO AT T-MOBILE.

ERGEN: WE DO.

FABER: RIGHT?

ERGEN: I THINK WE MIGHT EVEN HAVE A LITTLE MORE.

FABER: YOU MAY EVEN HAVE A LITTLE MORE SPECTRUM. THEY ARE A WIRELESS COMPANY, YOU'RE NOT.

ERGEN: WELL, WE ARE GOING TO BE A WIRELESS COMPANY.

FABER: WHAT DOES THAT MEAN?

ERGEN: WELL, WE'RE GOING TO TAKE OUR SPECTRUM AND GET IN THE WIRELESS BUSINESS IN SOME FORM OR FASHION. WE'RE NOT EXACTLY SURE HOW, BUT WE'LL BE IN THE BUSINESS THAT SPECTRUM IS GOING TO BE USED. AND WE HOPE TO COMPETE. AND IT'S NOT JUST COMPETE. BECAUSE WE HOPE NOT JUST TO DO TEXT AND VOICE AND SO FORTH, BUT WE THINK A LOT OF WHERE WIRELESS GOES IS ONE IS GOING TO BE HUGE AMOUNTS OF DATA, WHICH A LOT OF THAT, MOST OF THAT, WILL BE VIDEO. BUT IT'S MORE THAN THAT. THE WORLD IS GOING TO GO MACHINE TO MACHINE. SO IT'S NOT GOING TO BE JUST ABOUT HUMAN BEINGS AS CUSTOMERS. IT'S GOING TO BE EVERYTHING ELSE THAT IS CONNECTED. AND YOU CAN SEE WHERE SAMSUNG IS GOING TO CONNECT EVERYTHING FROM REFRIGERATORS TO CAMERAS TO TVs. YOU CAN IMAGINE, CARS ARE GOING TO BE CONNECTED. YOU WILL HAVE DRIVERLESS CARS. SO YOU CAN IMAGINE EVERYTHING IN THE WORLD CONNECTED. WHEN EVERYTHING IS CONNECTED, YOU ARE GOING TO NEED TO DO THAT THROUGH A WIRELESS MECHANISM. AND YOU NEED SPECTRUM TO DO THAT.

FABER: THERE IS NO DOUBT THAT SPECTRUM WILL BE VALUABLE AND POTENTIALLY USED FOR THOSE THINGS, BUT YOUR SHAREHOLDER BASE WANTS AN ANSWER AT SOME POINT WHEN YOU SAY WELL, WE ARE GOING TO FIGURE IT OUT. WHEN ARE YOU GOING TO FIGURE IT OUT? ARE YOU GOING TO SELL IT? ARE YOU GOING TO BUY T-MOBILE? ARE YOU GOING TO DO SOMETHING, SELL THE COMPANY? OR ARE YOU GOING TO BUILD IT YOURSELF?

ERGEN: THOSE ARE ALL OPTIONS.

FABER: I KNOW, YOU AND I DISCUSSED THIS BEFORE.

ERGEN: WHAT I WOULD SAY TO SHAREHOLDERS IS LOOK, WE ARE NOT A COMPANY THAT IF YOU BUY IT AND NEXT QUARTER YOU CAN SELL IT AND MAKE A BIG PROFIT FOR YOUR FUND. WE ARE A COMPANY YOU BUY, STICK IT IN A DRAWER AND LOOK AT IT IN FIVE YEARS AND SEE HOW YOU DID. WE'VE RETURNED OVER 20% ANNUALIZED RETURN TO OUR SHAREHOLDERS FOR 19 YEARS. THAT IS NOT A BAD TRACK RECORD.

FABER: IT IS NOT A BAD TRACK RECORD AT ALL.

ERGEN: IT IS NOT A BAD TRACK RECORD AND WE THINK LONG TERM ABOUT WHAT WE ARE TRYING TO DO AND IT'S A GREAT ADVANTAGE NOT TO HAVE TO GO TO THE STREET AND DO SOMETHING SHORT TERM THAT HURTS YOU IN THE LONG RUN.

FABER: WELL, THAT'S THE ADVANTAGE OF HAVING 90% OF THE VOTES, AS YOU DO. AND A LOT OF THE ECONOMICS AS WELL. DO YOU CARE ABOUT THE SHARE PRICE, THOUGH?

ERGEN: I DO, LONG TERM, OBVIOUSLY. I HAVE 99.9% OF MY NET WORTH TIED INTO THE STOCK OF THE COMPANIES. SO I'M ALIGNED WITH SHAREHOLDERS. I HAVE AN OLD SHIRT. I DIDN'T SPEND $10 ON A NEW SHIRT. I'M ALIGNED WITH SHAREHOLDERS. I HOPE THEY ARE ALIGNED – THOSE SHAREHOLDERS WHO THINK LONG TERM, I THINK, ARE GOING TO LIKE DISH. IF YOU ARE LOOKING TO MAKE A QUICK PROFIT AS YOU ARE PLAYING THE ARBITRAGE GAME, OR YOU'RE LOOKING FOR – WE'RE NOT THE RIGHT COMPANY.

FABER: RIGHT, BUT LONG TERM ALSO – I MEAN WE ARE ALL DEAD, SO AT SOME POINT YOU ARE GOING TO MAKE A DECISION ON THIS STUFF, RIGHT?

ERGEN: YES.

FABER: AND STUFF IS HAPPENING. I MEAN, THINGS ARE MOVING VERY QUICKLY. IT WOULD SEEM AS THOUGH IT'S BECOME EVEN MORE INCUMBENT UPON YOU TO SORT OF CHOOSE WHAT STRATEGY IT'S GOING TO BE.

ERGEN: WELL, I THINK THE WAY I LOOK AT IT IS – THERE ARE KIND OF TWO WAYS TO PLAY IT. YOU CAN BE REACTIVE OR PROACTIVE. AND SOMETIMES EVENTS HAPPEN WHERE YOU BECOME REACTIVE. SOMETIMES BEING REACTIVE IS REALLY GOOD. THIS HAPPENS, THIS HAPPENS AND IT OPENS THE DOOR FOR YOU FOR SOMETHING ELSE. IN GENERAL, I WOULD RATHER BE PROACTIVE. IN GENERAL, I'D RATHER BE PROACTIVE BECAUSE YOU HAVE A LITTLE BIT MORE CONTROL OF WHERE SOMETHING GOES AND IT GOES DOWN A PATH THAT YOU ARE PRETTY SURE IS GOING TO WORK. SOMETIMES WHEN YOU'RE REACTIVE, IT MIGHT BE A BETTER DEAL FOR YOU AND YOUR SHAREHOLDERS, BUT YOU ARE REACTING TO WHAT SOMEBODY ELSE DID. AND THEY MAY CAPTURE PART OF THE FLAG THAT YOU CAN'T GET.

FABER: SO ARE YOU BEING PROACTIVE?

ERGEN: WELL, WE LOOK AT EVERYTHING – WE CERTAINLY ARE LOOKING AT A LOT OF THINGS THAT WOULD BE PROACTIVE.

FABER: CHARLIE, I'M BEING TOLD WE'VE GOT TO END IT HERE, AT LEAST IN TERMS OF OUR LIVE INTERVIEW. WE'RE GOING TO DO A LITTLE SOMETHING ON TAPE AS WELL. THANK YOU FOR TAKING THE TIME.

ERGEN: THANKS FOR HAVING ME.

FABER: CHARLIE ERGEN IS CHAIRMAN AND CEO OF DISH.

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