The Federal Communications Commission (FCC) has launched a review of EchoStar’s spectrum licensing, potentially threatening the company’s ability to operate in certain frequency bands. FCC Chairman Brendan Carr has directed an examination of the company’s compliance with its obligations to provide nationwide 5G service. EchoStar, which acquired Dish Network in 2023 and operates Boost Mobile, faces scrutiny over its spectrum usage amid growing competition from firms like SpaceX, which has called for more aggressive spectrum allocation to support 5G and satellite systems.
EchoStar Chairman Charles Ergen has defended the company’s wireless deployment, but acknowledges the uncertainty of the FCC’s proceedings. The company’s stock dropped by approximately 8% in response to the news, reflecting investor concerns about the potential impact on its business. SpaceX’s recent push for spectrum reallocation highlights intense competition in the telecommunications sector, where efficient use of available frequencies is critical for expanding 5G services. The FCC has set strict deadlines for comments on the issue, with the first round of submissions due on May 27 and reply comments by June 6.
The FCC’s inquiry focuses on whether EchoStar is properly utilizing the 2 GHz band for its mobile satellite services (MSS) in accordance with regulatory requirements. The agency is also considering measures to encourage more intensive use of the band, including allowing new entrants. SpaceX has argued that the 2 GHz spectrum remains underused and could benefit satellite systems that aim to expand connectivity for consumers and first responders. EchoStar, however, contends that SpaceX’s demands represent a strategic move to secure additional spectrum, asserting that its terrestrial deployment adheres to population-based milestones it has consistently reported.