EchoStar details FCC compliance in recent filing

Published 28/05/2025, 13:48
EchoStar details FCC compliance in recent filing

ENGLEWOOD, CO – EchoStar Corporation (SATS), along with its affiliates DISH Network Corporation (NASDAQ:DISH) and Hughes Satellite Systems Corporation, has recently addressed compliance concerns raised by the Federal Communications Commission ( FCC (BME:FCC)). The communications company, currently valued at $5.8 billion in market capitalization, filed comments on May 27, 2025, responding to the FCC’s review of its obligations to provide 5G service in the United States.

The FCC had previously questioned EchoStar’s compliance related to its buildout extension for September 2024 and its mobile-satellite service (MSS) utilization in the 2GHz band. According to InvestingPro data, the company maintains a current ratio of 1.26, indicating sufficient liquid assets to meet short-term obligations, though it operates with a significant debt burden. EchoStar’s response, which is publicly available on the FCC’s website, outlines the company’s commitment to advancing public interest and maintaining its role in America’s wireless leadership.

EchoStar argued that any disruption to its ongoing 5G deployment could jeopardize its position as a wireless provider and the reliability of services for millions of consumers. The company stated that the FCC’s review has introduced uncertainty over its spectrum rights, halting decision-making processes for its 5G network buildout. This regulatory uncertainty comes as the company’s stock has seen a 19% decline over the past six months, though it maintains a relatively stable beta of 0.84.For deeper insights into EchoStar’s financial health and future prospects, investors can access comprehensive analysis through InvestingPro, which offers exclusive financial metrics and expert recommendations.

In the filing, EchoStar requests the FCC to deny the petition for reconsideration, reaffirm its compliance with the December 31, 2024, milestones, and confirm its exclusive licenses in the 2 GHz band. EchoStar disclosed that it currently has 1.3 million subscribers on net and added 88,000 wireless subscribers in April, contributing to its annual revenue of $15.7 billion.

This SEC filing is based on a press release statement.

In other recent news, EchoStar Corporation has been under review by the Federal Communications Commission (FCC) regarding its compliance with federal 5G service obligations in the United States. The inquiry, initiated by a letter dated May 9, 2025, also addresses EchoStar’s buildout extension from September 2024 and its use of the 2GHz band for Mobile Satellite Services. EchoStar’s Chairman, Charles W. Ergen, emphasized the company’s significant investments in deploying a 5G Open Radio Access Network and its commitment to fulfilling FCC obligations. EchoStar reported having 1.3 million subscribers and an addition of 88,000 wireless subscribers in April 2025.

In related developments, TD Cowen revised its outlook on EchoStar, reducing the stock price target to $28 from $32 while maintaining a Buy rating. EchoStar’s first-quarter performance showcased a record high in wireless subscriber additions, though it experienced a decline in PayTV subscribers. Despite this, the company maintained solid churn rates and plans to increase capital expenditures in 2026. TD Cowen expressed optimism about EchoStar’s prospects, particularly in the wireless segment, and noted potential regulatory changes that could benefit the company. These developments reflect EchoStar’s ongoing efforts to expand its network and address regulatory challenges.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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