- A federal judge approved the DoJ’s request to terminate the legal requirement that Dish build and maintain a mobile network
- It might sound silly since Dish is in the middle of Chapter 11 bankruptcy, but it’s a formality that had to happen in order for EchoStar to move forward
- The FCC and DoJ appear to be in lock step in their desire to clear the way for EchoStar to move on
A federal judge in Washington, D.C., last week signed off on a U.S. Department of Justice (DoJ) request to relieve EchoStar of its commitment to build and operate a mobile network.
U.S. District Court Judge Timothy Kelly issued the decision after the DoJ sought public comment on terminating EchoStar’s obligation. The comment period ended June 18 with no comments being received.
Dish was supposed to serve as the nation’s fourth facilities-based mobile operator as part of the government’s remedy in the T-Mobile/Sprint merger.
But the Federal Communications Commission (FCC) in May of 2025 launched an inquiry into its 5G buildout and spectrum usage, sending EchoStar into a tailspin. To avoid a possible bankruptcy, EchoStar agreed to sell spectrum to AT&T and SpaceX in separate transactions worth more than $40 billion.
Selling the spectrum effectively closes the door on EchoStar’s ability to continue as a facilities-based mobile network operator and the proposed transactions represent the best outcome for competition, according to the DoJ.
“The United States has determined that there is no available outcome that would allow EchoStar to continue as a mobile radio network operator and that the proposed transactions represent the best outcome for competition under the circumstances,” wrote U.S. DoJ Antitrust Division attorney Frederick Young in a July 10 motion. “Rather than declaring bankruptcy and exiting the marketplace altogether, EchoStar can now remain in business as a mobile wireless services provider for years.”
While EchoStar technically isn’t in bankruptcy, two of its subsidiaries are: Dish Wireless and Dish DBS, the latter being the digital broadcast unit. When the bankruptcy filings were made on June 30, EchoStar said it couldn’t make debt payments due July 1 because the AT&T spectrum transaction had not closed due to “unforeseen delays.” Some people speculated that may have had something to do with getting the DoJ sign-off.
Boost Mobile lives on
The FCC in May conditionally approved EchoStar’s spectrum sales to AT&T and SpaceX, with the requirement being that EchoStar establish a $2.4 billion escrow account to pay companies it owes money to.
The FCC fund will be used to fund smaller Dish Wireless vendors whose claims are under $100,000, but it’s not nearly enough to match what tower companies say they’re owed. Crown Castle alone says Dish owes it $3.5 billion.
The Boost Mobile and Gen Mobile cell phone brands are operating “business as usual” while the bankruptcy proceedings are going on. The $23 billion spectrum deal with AT&T included a provision that AT&T will provide its RAN to serve EchoStar’s mobile customers.
The next bankruptcy court hearing for Dish is scheduled for Thursday.
More stories about the drama around Dish:
EchoStar CEO Akhavan resigns amid Dish bankruptcy
Dish’s bankruptcy exposes the messy aftermath of its 5G gamble
Dish Wireless bankruptcy fight gets messier