Federal Communications Commission Initiates Examination of EchoStar's 5G and Satellite Frequency Allocation
Breaking: FCC Probing EchoStar's 5G and Satellite Spectrum Holdings
In a potential blow to EchoStar's ambitious plans to morph into a wireless powerhouse, the Federal Communications Commission has initiated an investigation into the company's 5G and satellite spectrum holdings. This news sent EchoStar's stock plunging in Tuesday's trading.
The FCC's Wireless Telecommunications Bureau issued a public notice, soliciting additional comments on a petition for reconsideration of last year's decision to extend EchoStar's construction deadlines for certain of its licenses during the 5G network buildout process. Additionally, the Space Bureau established SB Docket No. 25-173 to scrutinize EchoStar's usage of the 2,000-2,020 MHz (Earth-to-space) and 2,180-2,200 MHz (space-to-Earth) (2 GHz bands) for mobile-satellite service (MSS).
Addressing the investigation head-on, Chairman Charlie Ergen asserted, "We have invested tens of billions to deploy the world's largest 5G Open RAN network, primarily using American vendors, across 24,000 5G sites, to offer broadband service to over 268 million people nationwide."
The recent investigation stems from concerns over EchoStar's compliance with its federal obligations and potential underutilization of its spectrum bands. The FCC, led by Chair Brendan Carr, has purportedly accused EchoStar of falling behind in its commitment to build out 5G to at least 70% of its licensed geographical areas by June 14, 2025. In Carr's letter to Ergen, he alleges that EchoStar negotiated behind closed doors in September 2024 to avoid the consequences of failing to meet its obligations[3][4].
Moreover, Elon Musk's SpaceX contends that EchoStar barely uses the 2 GHz spectrum for 5G or any other service, amounting to less than 5% of the expected usage from a wireless network operator[3][4].
Meanwhile, an ongoing battle between Musk and Ergen over EchoStar's spectrum comes to the fore[5]. Carr has expressed a desire to expand 5G spectrum and expressed dissatisfaction with EchoStar's usage during a recent interview at the Milken Institute[5].
As the FCC investigation unfolds, EchoStar's strategic decisions concerning its Boost Mobile business and network expansion plans remain uncertain, even leading to a missed payment on its spectrum-secured notes due to the regulatory uncertainty[5].
Stay Updated with the Latest in TV Tech
Stay ahead of the curve in the professional video industry with our comprehensive newsletter. Sign up below!
[1] FCC Moves to Investigate EchoStar's 5G and Satellite Spectrum Holdings[2] EchoStar Criticized for Failing to Meet 5G Buildout Obligations[3] Elon Musk's SpaceX Accuses EchoStar of Underutilizing 2 GHz Spectrum[4] FCC to Review EchoStar's Spectrum License Compliance[5] FCC's Carr Expresses Desire to Expand 5G Spectrum and Dissatisfaction with EchoStar
- The Federal Communications Commission (FCC) has launched an investigation into EchoStar's use of the 2 GHz bands for mobile-satellite service (MSS), including the 2,000-2,020 MHz (Earth-to-space) and 2,180-2,200 MHz (space-to-Earth) bands.
- Elon Musk's SpaceX has accused EchoStar of underutilizing the 2 GHz spectrum for 5G or any other service, claiming that its usage amounts to less than 5% of the expected usage from a wireless network operator.
- The FCC's investigation stems from concerns over EchoStar's compliance with its federal obligations and potential underutilization of its spectrum bands, with Chair Brendan Carr alleging that EchoStar has fallen behind in its commitment to build out 5G to at least 70% of its licensed geographical areas by June 14, 2025.
- As the FCC investigation unfolds, EchoStar's strategic decisions regarding its Boost Mobile business and network expansion plans remain uncertain, even leading to a missed payment on its spectrum-secured notes due to the regulatory uncertainty.
