- The company submitted a filing to the FCC late Friday pleading for a lifeline
- FCC Chairman Brendan Carr is investigating whether EchoStar is complying with 5G buildout obligations and using its 2 GHz spectrum licenses
- EchoStar’s original buildout deadline was June 14, 2025, which is fast approaching
EchoStar is in a fight for its life and in its latest salvo used Federal Communications Commission (FCC) Chairman Brendan Carr’s own words to explain why the agency should not backtrack after the company spent billions of dollars deploying a 5G network using spectrum the FCC authorized it to use.
Carr in June 2023 appeared before a House subcommittee hearing where he was asked about calls for the FCC to reverse spectrum allocation decisions. He said those demands were cause for concern. “We should not be coming in behind after the fact and pulling the rug out from under us," he argued at the time.
EchoStar’s lawyers cited that scene in an FCC filing submitted late Friday to illustrate how it’s in the best interest of the U.S. for EchoStar to continue doing what it’s doing: building out a 5G open RAN network using spectrum the FCC gave EchoStar the rights to use. The FCC, under Carr’s instructions, is currently giving EchoStar a hard time as it tries to fulfill its obligations as a fourth facilities-based U.S. wireless operator.
By “hard time” we mean that EchoStar may end up filing for bankruptcy before all is said and done. After Carr last month launched investigations into EchoStar’s 5G buildout obligations and use of 2 GHz spectrum, EchoStar said the probes created a “dark cloud of uncertainty” that rendered EchoStar unable to make decisions about its Boost Mobile business, including the continued buildout of its 5G network. The company elected to miss interest payment deadlines, which sparked a lot of speculation that it’s headed to bankruptcy in the not-too-distant future.
How EchoStar got here
EchoStar is subject to network buildout obligations related to its acquisition of assets from T-Mobile back in 2020. In September 2024, under the Biden administration, EchoStar was given an extension on its deadline to reach more rural areas of the country. Instead of June 14, 2025, the deadline was moved to December 14, 2026, for four spectrum blocks (AWS-4, lower 700 MHz E, 600 MHz and AWS H), with overall final construction milestones extended to June 14, 2028, instead of December 14, 2026.
Carr complained at the time that the Democratic-led commission approved a “backroom deal” that didn’t get a proper public review or the attention of the full commission. Shortly thereafter, a small Vermont wireless service provider, Vtel Wireless, filed a petition with the FCC asking it to reconsider the extension, saying the process lacked public input. That petition is part of the current proceedings before the FCC.
At the same time, SpaceX has been lobbying the FCC to give it access to EchoStar’s 2 GHz spectrum because, according to SpaceX, EchoStar is barely using that spectrum. EchoStar argues that those allegations are false and merely an attempt by SpaceX to get access to EchoStar’s spectrum for free. EchoStar plans to use the 2 GHz spectrum to launch a direct-to-device (D2D) service.
Carr opened public notices on both the 5G buildout process and the use of 2 GHz. Final comments from the public came due on Friday.
Support for EchoStar, but …
Most of the public comments filed in the proceedings are favorable to EchoStar – vendors, general contractors, tower companies, trade associations and public interest groups filed in support of open RAN, U.S. jobs and American-made hardware/software.
But it’s not a popularity contest and New Street Research analyst Blair Levin said the final filings don’t change his view that both public notices will lead to FCC actions that are initially problematic for EchoStar.
“The filings do give us greater confidence that EchoStar would have a good chance to overcome both through court actions,” he wrote in a note for investors today.
“Ultimately the dispute if more likely to be resolved through a negotiation than through the courts as all the stakeholders (including the incumbent carriers who have not filed but have significant influence with Carr and the Congress), have too much to lose through protracted court battles. But there is an element of a game of chicken in which each side must assess the willingness of the other side to suffer pain,” Levin said.
State of play
While some analysts have said it looks like Carr’s FCC is out to get EchoStar – he's declined multiple requests to meet with EchoStar Chairman Charlie Ergen – and is likely to favor whatever SpaceX wants, recent events could change the state of play. For example, Republican Commissioner Nathan Simington’s and Democratic Commissioner Geoffrey Starks’ last day at the commission was Friday, leaving Carr and Democrat Anna Gomez as the only ones left until FCC nominee Olivia Trusty gets Senate confirmation.
Without a quorum, the FCC is likely unable to legally proceed with an adverse decision about EchoStar’s future, EchoStar told the commission in Friday’s filing. However, EchoStar needs the FCC to put these issues to rest in order to get back to business.
As for the 2 GHz spectrum, that is largely seen as a play for SpaceX to get more spectrum. Carr has consistently taken Musk’s side and started that proceeding just a few days after SpaceX requested it, signaling his view is likely to favor SpaceX. But given the very public blowup that happened between President Trump and Musk last week, it’s anyone’s guess how that might turn out.