Aiden Buzzetti: The FCC Should Make Sure EchoStar Creditors Are Paid Back Billions Owed

Somewhere between the marble halls of Washington and the steel skeletons of America’s cell towers, a very old story is playing out: a well-connected corporation makes promises to the government, ordinary Americans do the work, and when the bill comes due, a billionaire suddenly decides the rules don’t apply.

That is exactly what is happening with EchoStar and its subsidiary DISH Wireless - and why the Federal Communications Commission now finds itself at a crossroads that could shape the future of U.S. wireless infrastructure.

A few years ago, regulators blessed the blockbuster merger of T-Mobile and Sprint on one crucial condition: DISH would step up as a real, infrastructure-based fourth wireless carrier. In exchange, Washington handed DISH access to valuable wireless spectrum, along with clear buildout requirements meant to ensure competition, innovation, and jobs.

The deal sounded good - and for a time, it worked as intended. Tower companies erected new sites. Fiber was laid. Contractors hired workers. Local governments and rooftop owners signed leases. Billions of dollars in private capital flowed into building out a network that, on paper, would give Americans more choice and strengthen our digital backbone.

But somewhere along the way, DISH’s leadership decided that actually running a nationwide network was less attractive than cashing out and making the CEO even more rich than he already was.

Now, controlled by billionaire Charlie Ergen, EchoStar is moving to sell off its spectrum for a massive windfall - reportedly approaching $50 billion. That part isn’t necessarily a problem. The problem is what EchoStar is refusing to do with that money.

Rather than using a portion of those proceeds to pay the companies that built and managed its network, EchoStar is trying to walk away from an estimated $7–$10 billion in obligations owed to tower operators, fiber providers, contractors, and local communities. In other words, it wants all the upside of the deal and none of the responsibility.

The company’s argument relies on corporate gymnastics that would make a Wall Street lawyer blush. EchoStar and DISH were merged in 2023 under common control - effectively two sides of the same coin. Yet now, when it comes time to pay the bills, EchoStar insists that it bears no responsibility for DISH Wireless’s contracts.

Even more troubling, Charlie Ergen and EchoStar has begun telling its partners in writing that its obligations are “excused” because of regulatory review undertaken by the Trump Administration. Every spectrum holder knows that scrutiny is part of the process—Ergen argues it magically erases binding contracts.

If this sounds like a “corporate shell game,” that’s because it is.

What’s at stake goes far beyond one company or one transaction. America’s wireless towers are long-term infrastructure investments that rely on one basic assumption: when a company voluntarily restructures or sells assets, it doesn’t get to unilaterally shred its commitments.

If that assumption collapses, the cost of capital for future buildouts will rise. Higher costs mean slower deployment of 5G and 6G, fewer new competitors entering the market, and ultimately higher prices for consumers.

We are already seeing the fallout. Major tower companies have announced expedited restructuring and layoffs tied to DISH’s payment defaults, with other firms signaling similar pain. For small and mid-sized providers, these unpaid bills are existential.

No one is asking the FCC to referee individual contract disputes. But the agency does have both the authority and the responsibility to ensure that its license transfer process is not used as a loophole for unjust enrichment that creates long-term damage to the wireless infrastructure ecosystem.  FCC Chairman Brendan Carr’s leadership has centered on a Build America agenda and a clear expectation that FCC licensees act in the public interest.  EchoStar’s actions are an affront to both.
 
The FCC can condition approval of any spectrum sale on EchoStar setting aside an escrow for its contract obligations. While courts review the disputes, it would ensure funds are available in the event that DISH is ordered to pay its dues. The escrow would also be a strong message from the FCC that a routine investigation doesn’t wipe away contractual duties— and that corporate restructuring cannot be used to dodge commitments that were the very basis for receiving valuable public spectrum in the first place.

Free markets depend on companies keeping their word - especially when they benefit from taxpayer-backed deals. If EchoStar is allowed to pocket billions while stiffing the people who built its network, it will signal that promises only matter until they become inconvenient for the billionaire CEO.

The FCC now has a chance to say something very different - that when you take advantage of the public’s airwaves, you don’t get to pull an empty pocket out in one hand while your other is stuffed with cash.

Aiden Buzzetti is the President of the Bull Moose Project. As President of the Bull Moose Project, Aiden has advocated for policies that secure a dominant future for the United States in the technology, infrastructure, and manufacturing sectors, and is based in Washington, D.C. This Expert Opinion is exclusive to Broadband Breakfast.

Broadband Breakfast accepts commentary from informed observers of the broadband scene. Please send pieces to commentary@breakfast.media. The views expressed in Expert Opinion pieces do not necessarily reflect the views of Broadband Breakfast and Breakfast Media LLC.