EchoStar Sues to Block AWS-3 Auction Rules, Fears Shortfall Payment
If the re-auction brings in less than about $3.3 billion, EchoStar is on the hook for the difference.
WASHINGTON, Sept. 2, 2025 – EchoStar is suing to block the Federal Communications Commission’s rules for an upcoming spectrum auction, arguing they could leave the company on the hook for billions in penalty payments.
Echostar Petition for Review
Addopted in July, the auction rules “potentially place EchoStar on the hook for a default payment penalty of billions of dollars” following the auction, the company wrote in a Friday petition. The company sued in the U.S. Court of Appeals for the Tenth Circuit in Denver.
The auction at issue is a re-auction of 200 licenses in the AWS-3 band, the vast majority of which were returned by Dish, now owned by EchoStar. The FCC found two smaller companies that actually did the bidding – so-called designated entities that received a discount because of their size – were financially too close to EchoStar. The company handed them back rather than pay the full price and was hit with a $515 million fine.
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