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EchoStar Corporation, along with its affiliates DISH Network (NASDAQ:DISH), Hughes Satellite Systems, and DISH DBS, disclosed a significant development in a recent SEC filing dated May 30, 2025. The company, currently valued at $5.8 billion in market capitalization with annual revenues of $15.68 billion, has chosen not to make a $326 million interest payment due on the same day, concerning its 10.75% senior spectrum secured notes due 2029. According to InvestingPro data, EchoStar operates with a significant debt burden, with total debt standing at $30.07 billion. This decision follows a letter from the Federal Communications Commission ( FCC (BME:FCC)) dated May 9, 2025, which initiated a review of EchoStar’s compliance with federal obligations related to 5G service provision in the United States.
The FCC’s review specifically questions EchoStar’s buildout extension granted in September 2024 and the utilization of the 2GHz band for mobile-satellite service (MSS). EchoStar responded to the FCC’s inquiries on May 27, 2025, seeking relief and maintaining that it has met all 5G buildout milestones.
EchoStar’s decision to withhold the interest payment is strategic, allowing time for the FCC to respond to their request for relief within the 30-day grace period provided by the indenture governing the 2029 Spectrum Notes. If the company fails to make the payment within this period, it will result in an Event of Default as per the indenture terms.
The company asserts that the uncertainty over its spectrum rights has stalled decision-making regarding its Boost business and affected its ability to continue network buildout and business plan adjustments. EchoStar remains confident in its compliance with the FCC’s 5G service requirements and has detailed its stance in filings with the SEC and FCC.
The information provided in this article is based on EchoStar’s SEC filing and reflects the company’s current situation as it navigates regulatory challenges and financial obligations. InvestingPro analysis indicates the stock is currently trading below its Fair Value, with additional insights available through the comprehensive Pro Research Report, which provides detailed analysis of EchoStar’s financial health and future prospects among 1,400+ top US stocks.
In other recent news, EchoStar Corporation has been actively addressing compliance concerns raised by the Federal Communications Commission (FCC) regarding its 5G service obligations in the United States. The company’s recent filings outline its response to the FCC’s inquiry about its buildout extension and Mobile Satellite Services (MSS) utilization in the 2GHz band. EchoStar has requested the FCC to deny the petition for reconsideration and confirm its compliance with the December 31, 2024, milestones. The company disclosed having 1.3 million subscribers and reported an addition of 88,000 wireless subscribers in April 2025. EchoStar’s Chairman, Charles W. Ergen, emphasized the company’s significant investments in deploying a 5G Open Radio Access Network (Open RAN) and its commitment to expanding its network. Ergen also highlighted EchoStar’s role in advancing Open RAN technology to maintain U.S. leadership in wireless technology. The company continues to work with the FCC, although the outcome of the review remains uncertain. This information is based on recent SEC filings and press release statements.
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