EchoStar addresses FCC inquiries on 5G obligations

Published 28/05/2025, 13:56
EchoStar addresses FCC inquiries on 5G obligations

Englewood, Colorado-based EchoStar Corporation (NASDAQ:SATS), currently trading at $20.24 with a market capitalization of $5.8 billion, along with its affiliates DISH Network Corporation (NASDAQ:DISH) and Hughes Satellite Systems Corporation, has filed a response to the Federal Communications Commission’s ( FCC (BME:FCC)) review of its compliance with federal obligations to provide 5G services in the United States. According to InvestingPro data, the company maintains a "Fair" overall financial health score, though analysts anticipate challenges ahead. This development follows a letter from the FCC Chairman dated May 9, 2025, questioning EchoStar’s buildout extension and mobile-satellite service (MSS) utilization in the 2GHz band.

EchoStar’s comments, submitted on May 27, 2025, and available via the FCC’s website, outline the company’s contributions to the public interest and its role in supporting America’s wireless leadership. The filing emphasizes that any disruption to EchoStar’s deployment efforts could jeopardize its status as a wireless provider and affect the satellite services relied upon by millions. With a significant debt burden of $30.1 billion but a healthy current ratio of 1.26, the company’s financial position remains a key consideration in its deployment capabilities.

The FCC’s public notices have cast uncertainty over EchoStar’s spectrum rights, hindering the company’s decision-making regarding its 5G network buildout. EchoStar’s filing requests the FCC to reject the petition for reconsideration, confirm EchoStar’s compliance with the accelerated December 31, 2024, deadlines, and reaffirm exclusive licenses in the 2 GHz band.

Furthermore, EchoStar disclosed that it has 1.3 million subscribers on the net and reported adding 88,000 wireless subscribers in April 2025. The company’s response aims to clarify its position and ensure the continuation of its 5G network development.

This news is based on a press release statement and the information is sourced from an SEC filing.

In other recent news, EchoStar Corporation, along with its affiliates DISH Network Corporation and Hughes Satellite Systems Corporation, has addressed compliance concerns raised by the Federal Communications Commission (FCC) regarding its 5G service obligations in the United States. The FCC’s review, initiated by a letter dated May 9, 2025, questions EchoStar’s buildout extension from September 2024 and its utilization of the 2GHz band for Mobile Satellite Services. EchoStar has responded by emphasizing its commitment to advancing public interest and maintaining its role in America’s wireless leadership, as outlined in its filings with the Securities and Exchange Commission (SEC). The company highlighted its investments in deploying a 5G Open Radio Access Network (Open RAN) and its efforts to enhance connectivity through direct-to-device satellite technology. EchoStar has requested the FCC to deny the petition for reconsideration and reaffirm its compliance with the December 31, 2024 milestones. Additionally, EchoStar disclosed a current subscriber base of 1.3 million, with an addition of 88,000 wireless subscribers in April 2025. The company has not predicted the outcome of the FCC’s review but remains committed to fulfilling its obligations and continuing its collaboration with regulatory authorities.

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