DISH/SATS: FCC Carpet Burn or Rug Pull?

FCC letter to SATS: Carpet Burn or Rug Pull? After EchoStar just reported 1Q25 earnings and issued another $150 million of spectrum-backed debt (fulfilling a prior obligation), FCC chairman Brendan Carr has fired a shot across the bow at DISH, stopping short of calling the company a “spectrum warehouser” but clearly calling into question whether the company has been effective at building out a 5G network. The letter identified three actions: 1) review whether DISH has met buildout requirements, 2) consider nullifying the recent extension provided by the Biden FCC and 3) weigh whether there is a better use case for DISH’s MSS spectrum.

We don’t know the answer but neither feels good. It is difficult to know the FCC’s end game but our concern is more around the FCC’s now unpredictable approach to dealing with EchoStar’s position. This wouldn’t be the first time someone has called out Ergen for “hoarding” spectrum but would be the first time that the FCC seems to be directly challenging him. We note that any sale or lease of the spectrum would require said FCC approval, introducing some uncertainty on that front.