EchoStar delays $326 million interest payment amid FCC review

EchoStar Corporation (market cap: $5.8 billion), along with its affiliates DISH Network (NASDAQ:DISH), Hughes Satellite Systems, and DISH DBS, has announced a significant financial decision in light of an ongoing Federal Communications Commission ( FCC (BME:FCC)) review. The company, which generated $1.56 billion in EBITDA over the last twelve months, has chosen not to make a scheduled $326 million interest payment due today on its 10.75% senior spectrum secured notes due in 2029. This decision follows a letter from the FCC Chairman dated May 9, 2025, initiating a review of EchoStar’s compliance with federal obligations to provide 5G service in the United States.

The FCC’s inquiry, which casts doubt on EchoStar’s spectrum rights, has led to a halt in decision-making regarding the company’s Boost business, including the continued buildout of its network. According to InvestingPro data, the company operates with a significant debt burden of $30.1 billion, though its current ratio of 1.26 indicates sufficient short-term liquidity. The non-payment of the interest, while currently a default under the governing indenture, will only turn into an Event of Default if the payment is not made within the 30-day grace period.

EchoStar’s response to the FCC’s letter, filed on May 27, 2025, seeks relief that would allow the company to proceed with confidence in its network expansion and Boost business. The company asserts that it has met all applicable 5G buildout milestones, as detailed in its SEC and FCC filings.

This information is based on a press release statement and reflects the latest developments in EchoStar’s ongoing interactions with the FCC and its impact on financial obligations.

In other recent news, EchoStar Corporation has disclosed significant developments regarding its financial obligations and compliance with federal regulations. The company decided not to make a $326 million interest payment on its senior spectrum secured notes due 2029, following a Federal Communications Commission (FCC) review of its 5G service compliance in the United States. EchoStar argues that it has met all 5G buildout milestones and is seeking relief from the FCC within a 30-day grace period to avoid default. The FCC’s review has raised questions about EchoStar’s spectrum rights, particularly concerning a buildout extension and the use of the 2GHz band for mobile-satellite service. EchoStar has also reported having 1.3 million subscribers and adding 88,000 wireless subscribers in April 2025. The company has requested the FCC to deny a petition for reconsideration and confirm its compliance with the December 31, 2024, deadlines. EchoStar emphasizes its commitment to advancing public interest and maintaining its role in wireless leadership. The outcome of the FCC’s review remains uncertain, but EchoStar continues to assert its compliance with federal obligations.

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