EchoStar Makes Interest Payments, Avoiding Default
FCC Chairman Brendan Carr thinks the company's spectrum is underused.
WASHINGTON, July 31, 2025 – EchoStar made interest payments on Wednesday that were originally due July 1, avoiding a default that could have risked bankruptcy.
The company had missed more than $114 million in payments due July 1, triggering a 30-day grace period. It notified federal regulators it would be missing those payments as it made another $500 million in late (but not defaulted on) payments.
In both instances, EchoStar said it missed the payments because of the significant uncertainty around its business amid two reviews from the Federal Communications Commission.
The inquiries center on whether EchoStar has met the buildout obligations for some of its 5G spectrum licenses, and whether the company is efficiently using its mobile-satellite service (MSS) spectrum. The FCC has taken comments on whether it should revisit a Biden-era deadline extension for the 5G licenses and on how the agency might make more intensive use of the MSS spectrum at issue.
EchoStar “continues to work cooperatively with the FCC to facilitate its ongoing inquiries, including by providing responses and information at the FCC’s request,” the company wrote in a Wednesday filing with the Securities and Exchange Commission. “In parallel, the Company continues to progress wide-ranging efforts to explore alternative or complementary pathways that could, if successfully implemented, resolve the FCC’s stated concerns in a manner acceptable to the Company.”
The company specified that “no such resolution has been achieved, and it is possible that no such resolution will ultimately be achieved,” but said it determined it should still make the payments and avoid default.
Dish, now owned by EchoStar, was supposed to be a fourth national wireless carrier after T-Mobile bought Sprint in 2020, and purchased Sprint’s prepaid business and some spectrum licenses so the Department of Justice would approve the deal. FCC Chairman Brendan Carr has made clear he thinks the airwaves would be put to better use in the hands of another entity.
“What’s clear to me is that the status quo itself is just not acceptable,” he said at a press conference following the FCC’s July meeting. “We’re pushing hard to free up spectrum, and you have Dish effectively, over the years, sitting on a tremendous amount of spectrum that simply isn’t loaded.”
The company maintains it has met FCC requirements for both the 5G and MSS spectrum licenses. The company has 7 million mobile subscribers, 1.3 million of which are served by EchoStar's own infrastructure.
Bloomberg reported Wednesday that Carr had made a “best and final” offer to EchoStar, pushing the company to sell some of its AWS-4 licenses. In addition to its licenses for terrestrial 5G service, the company has the rights to use the same airwaves for MSS.
New Street Research policy advisor Blair Levin said in an investor note Thursday that the open proceeding on the band’s MSS use, in which Elon Musk’s SpaceX is pushing for other satellite companies to be allowed to share the band, could make the AWS-4 licenses less attractive to the major wireless carriers. EchoStar has said the airwaves effectively couldn’t be shared between separate 5G and satellite operators.
He said that it was possible Carr would close the docket if EchoStar agreed to sell the spectrum, but added that getting the company to sell or open up some of its airwaves quickly was likely a bigger priority for the FCC than any specific band.
EchoStar declined to comment beyond what the company said in its SEC filing. The company will hold its second quarter earrings call at noon on Friday.
Member discussion