EchoStar is skipping interest payments even as it commissions a new Dish TV satellite — citing “uncertainty” caused by a Federal Communications Commission (FCC) probe.
It’s potentially setting itself up for bankruptcy protection
While those payments are on hold, EchoStar, which Dish Network rejoined last year, is still investing in its TV business. It commissioned a new communications satellite for television, Maxar Space Systems announced yesterday. The satellite, EchoStar XXVI, is supposed to be completed by 2028 to support Dish TV coverage across 50 US states and Puerto Rico.
The FCC is investigating whether EchoStar is hitting requirements to deploy 5G that it’s supposed to meet in order to keep its spectrum licenses. Dish Network merged back with EchoStar — which also owns Boost Mobile — to try to compete in 5G, with the goal of trying to become a competitor with AT&T, Verizon, and T-Mobile. The FCC probe has led EchoStar to “freeze its decision-making” for Boost Mobile, the Wall Street Journal reports.
SpaceX is also a rival vying with EchoStar for spectrum licenses in the 2 GHz band. Elon Musk’s company conducted its own analysis of Dish’s cellular signals and called EchoStar’s use of the gigahertz band “de minimis at best” in an April filing to the FCC. EchoStar accused SpaceX of a “land grab” for spectrum the Wall Street Journal reported last month.
Neither Dish Network nor EchoStar responded immediately to a request for comment from The Verge.
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