DISH Could Be in Major Trouble

telcodad

DISH Network is facing potential trouble as its parent company, EchoStar, comes under scrutiny from the FCC as it questions the company’s use of its cellular and satellite spectrum licenses:

DISH Could Be in Major Trouble as The FCC Probes Parent Company’s 5G Compliance
By Luke Bouma, Cord Cutters News - May 13, 2025
https://cordcuttersnews.com/dish-could-be-in-major-trouble-as-the-fcc-probes-parent-companys-5g-compliance/

The FCC has launched an investigation into EchoStar’s compliance with federal requirements to build a nationwide 5G network, raising questions about the company’s valuable cellular and satellite spectrum licenses. This probe could jeopardize EchoStar’s ambitious wireless plans and threaten the financial stability of DISH ….

According to a recent report from The Wall Street Journal, the FCC’s investigation centers on whether EchoStar has met the construction milestones set by the U.S. government in 2019 to maintain cellular licenses worth billions of dollars: https://www.wsj.com/business/telecom/fcc-threatens-charlie-ergens-hold-on-satellite-5g-spectrum-licenses-e2913889

telcodad

EchoStar, the parent company of DISH Network, Hughes Satellite Systems, and DISH DBS, is teetering on the edge of bankruptcy after announcing it will not make a $326 million interest payment that was due today:

DISH & Sling TV Face Bankruptcy as It Misses $326M Interest Payment
By Luke Bouma, Cord Cutters News - May 30, 2025
https://cordcuttersnews.com/dish-sling-tv-face-bankruptcy-as-it-misses-326m-interest-payment/

EchoStar Corporation, the parent company of DISH Network, Hughes Satellite Systems, and DISH DBS, is teetering on the edge of financial distress after announcing it will not make a $326 million interest payment due today on its 10.75% senior spectrum secured notes due in 2029. The decision, disclosed in a press release, comes as the Federal Communications Commission (FCC) intensifies its review of EchoStar’s compliance with federal 5G service obligations, casting a shadow over the company’s future and raising the specter of bankruptcy.

EchoStar, with a market capitalization of $5.8 billion and $1.56 billion in EBITDA over the past year, is grappling with a staggering $30.1 billion debt load, according to InvestingPro data. While the company maintains a current ratio of 1.26, indicating adequate short-term liquidity, the missed interest payment marks a critical default under the terms of its debt indenture. EchoStar has a 30-day grace period to make the payment before it escalates into an Event of Default, which could accelerate creditor actions and push the company toward Chapter 11 bankruptcy. ….

telcodad

Also on the Light Reading site:

EchoStar could threaten bankruptcy over FCC inquiry
EchoStar said it won’t make an interest payment because of the ‘uncertainty’ sparked by an FCC investigation. The situation could increase pressure against FCC Chairman Brendan Carr.
By Mike Dano, Light Reading - May 30, 2025
https://www.lightreading.com/open-ran/echostar-could-threaten-bankruptcy-over-fcc-inquiry

EchoStar said it won’t make an interest payment because of an FCC inquiry into its 5G network. The move could potentially set the stage for EchoStar to seek Chapter 11 bankruptcy protection – and blame the FCC for it.

That’s because FCC Chairman Brendan Carr earlier this month launched “a review of EchoStar’s compliance with its federal obligations to provide 5G service throughout the United States per the terms of its federal spectrum licenses,” Carr wrote in a letter to EchoStar’s Charlie Ergen, who oversees EchoStar and its Boost Mobile business. …

Zer0Cool

rip

telcodad

DISH is Reportedly Preparing For Bankruptcy as FCC License Threat Looms, & It Stops Debt Payments
By Luke Bouma, Cord Cutters News - June 6, 2025
https://cordcuttersnews.com/dish-is-reportedly-preparing-for-bankruptcy-as-fcc-license-threat-looms-it-stops-debt-payments/

Dish’s parent company EchoStar Corporation is weighing a Chapter 11 bankruptcy filing as a defensive maneuver to safeguard its valuable wireless spectrum licenses from potential revocation by the Federal Communications Commission, according to sources familiar with the matter told the Wall Street Journal: https://www.wsj.com/articles/echostar-prepares-potential-bankruptcy-filing-amid-fcc-review-36d6be50
:
In the past week, EchoStar has opted to miss two significant interest payments on its debt, initiating a 30-day grace period. Failure to remit payment before this period expires in July would trigger a default on its bonds. In securities filings, EchoStar directly attributed its actions to the FCC’s review, stating the commission’s threats had “effectively frozen our ability to make decisions” about strategic investments, particularly in its Boost Mobile wireless business.

telcodad

FCC threat to revoke EchoStar spectrum licenses draws widespread backlash
FCC threatens “legal stability” of wireless market, Free State Foundation says.
By Jon Brodkin, Ars Technica – June 10, 2025
https://arstechnica.com/tech-policy/2025/06/fcc-threat-to-revoke-echostar-spectrum-licenses-draws-widespread-backlash/

The Federal Communications Commission is facing widespread criticism after threatening to revoke EchoStar licenses for spectrum bands that rival firms, including SpaceX, want to take over. Opposition to license revocations came from conservatives, telecom consumer advocates, and some industry groups.

The Free State Foundation, a free-market group that has generally supported Republican priorities at the FCC, filed comments saying that “arbitrary” decisions would create instability in the market for wireless broadband deployment: https://www.fcc.gov/ecfs/document/1060658425016/1

EchoStar is now facing regulatory uncertainty less than a year after obtaining deadline extensions for its wireless network buildout … As previously reported, FCC Chairman Brendan Carr directed agency staff to investigate EchoStar’s compliance with obligations to provide nationwide 5G service under the terms of its spectrum licenses. EchoStar bought Dish Network in December 2023 and offers wireless service under the Boost Mobile brand. ….

telcodad

Op-Ed: EchoStar is in a bleak place right now
By Monica Alleven , Fierce-Network - June 13, 2025
https://www.fierce-network.com/wireless/oped-echostar-bleak-and-ironic-place-right-now

In an astonishing turn of events this week, a former Republican FCC commissioner slammed fellow Republican and FCC Chairman Brendan Carr for making a “dangerous mistake” in threatening to take away EchoStar’s spectrum licenses.

“The FCC threatens such severe sanctions that they put EchoStar’s financial viability in question and threaten to kill the company,” newly ex-FCC commissioner Nathan Simington wrote in an opinion piece. “This places every holder of a spectrum license in a riskier position and will raise consumer prices by forcing every licensee, not just EchoStar, to charge higher risk premiums.” https://www.realclearpolicy.com/articles/2025/06/10/the_fccs_dangerous_echostar_mistake_1115716.html

He’s right, and every license holder in the wireless industry should be concerned. But Simington’s curiously timed Op-Ed – less than a week after he left the FCC – is just the latest turn of events in what has been a catastrophic mess for EchoStar, the parent of Dish Network and Boost Mobile. ….

telcodad

Trump presses FCC and EchoStar to cut spectrum licenses deal – report
EchoStar shares got a big boost following a report that President Trump is encouraging FCC Chairman Brendan Carr and EchoStar to resolve a dispute centered on EchoStar’s spectrum licenses.
By Jeff Baumgartner, Senior Editor, Light Reading - June 16, 2025
https://www.lightreading.com/regulatory-politics/trump-presses-fcc-and-echostar-to-cut-spectrum-licenses-deal-report

EchoStar shares soared nearly 50% Monday after Bloomberg reported late last week that President Donald Trump has stepped in to urge EchoStar and FCC Chairman Brendan Carr to resolve a dispute over EchoStar’s federal 5G obligations and spectrum licenses.

Bloomberg said EchoStar Chairman Charlie Ergen and Carr met last Wednesday (June 11), with Carr telling Ergen that EchoStar needs to start selling some of its spectrum licenses or risk losing them. Ergen met with Trump the next day, with the president intimating that he did not want to see EchoStar go bankrupt on his watch, and then summoned Carr to join the meeting. …..

telcodad

EchoStar and Dish Will Skip Multi Million Dollar Interest Payments Due July 1 As Bankruptcy Fears Grow
By Jess Barnes, Cord Cutters News - June 27, 2025
https://cordcuttersnews.com/echostar-and-dish-will-skip-making-interest-payments-due-july-1/

EchoStar and Dish are making payments today on scheduled interest originally due on May 30, 2025 for 2029 Spectrum Notes, and scheduled interest payments originally due on June 2, 2025 on DBS Notes. These payments are within the 30-day grace period and are being made to avoid an Event of Default.
A 30-day grace period will again be invoked. ….
Edited for CG length rules

Also on the Light Reading site now:

EchoStar resumes interest payments, avoids Chapter 11… for now
EchoStar has averted a possible Chapter 11 filing after agreeing to make delayed interest payments. The company delayed the payments to provide time to reach an agreement with the FCC over its 5G obligations and spectrum licenses.
By Jeff Baumgartner, Senior Editor, Light Reading - June 27, 2025
https://www.lightreading.com/5g/echostar-resumes-interest-payments-avoids-chapter-11-for-now

r81984

ATT wont let the spectrum go anywhere else. It was obvious the long term plan was for DISH to buy spectrum and get spectrum that ATT was not allowed to own. DISH would get rich and ATT would get the spectrum.
But with Carr running the FCC as a lapdog, ATT could get DISH bankrupt so they can buy the spectrum for cheaper than they originally planned.
ATT is the only thing keeping DISH alive with their 10 year $5 billion deal. Dish took on all debt for the spectrum that it purchased. The Directv/DISH debt exchange merger was only canceled after Trump won the election. ATT knows they can play dirty now to get DISH spectrum assets. They dont need to make DISH rich anymore to get it.

telcodad

Latest update on EchoStar’s financials:

EchoStar’s ‘going concerns’ warning returns as it sparks $5B direct-to-device LEO project
Facing an ongoing cash crunch and lingering questions about future financing, EchoStar has again warned that there is ‘substantial doubt about our ability to continue as a going concern.’ Meanwhile, the company is pursuing a $5 billion LEO-powered direct-to-device network.
By Jeff Baumgartner, Senior Editor, Light Reading - August 1, 2025
https://www.lightreading.com/5g/echostar-s-going-concerns-warning-returns-as-it-sparks-5b-direct-to-device-leo-project

Replaying a warning that was raised last March, EchoStar is again ringing the warning bell that its financials are in hot water.

“We currently do not have the necessary cash on hand, projected future cash flows or committed financing to fund our obligations over the next twelve months, which raises substantial doubt about our ability to continue as a going concern,” EchoStar noted in the 10-Q filing.

EchoStar added that it’s in “active discussions with funding sources to raise additional capital and/or restructure our outstanding debt.”

New Street Research Analyst Phillip Burnett said in a research note (registration required) that EchoStar’s going-concern disclosure is not all that surprising given the company’s current cash situation and the $3.4 billion of debt coming due in the next year. But the disclosure arrives soon after the company made a delayed interest payment that kept the company out of default, replaying a similar situation that occurred last month that had EchoStar on the brink of filing for Chapter 11 protection. …..

telcodad

FCC Chairman Brendan Carr is pressuring EchoStar’s Chairman Charlie Ergen to sell its AWS-4 spectrum:

FCC Chairman Urges Dish To Sell Some Of Its Spectrum That It’s “Not Putting to the Best Use”
By Luke Bouma, Cord Cutters News - August 4, 2025
https://cordcuttersnews.com/fcc-chairman-urges-dish-to-sell-some-of-its-spectrum-that-its-not-putting-to-the-best-use/

FCC Chairman Brendan Carr has issued what Bloomberg reports as a “best and final” offer to Dish’s parent company EchoStar’s Chairman Charlie Ergen, urging the company to sell its AWS-4 spectrum holdings, according to a report published Wednesday. While the specifics remain unclear, it is uncertain whether Carr’s proposal demands a full or partial divestiture of EchoStar’s AWS-4 spectrum, which operates in the 2GHz band (2000-2020 MHz and 2180-2200 MHz). This development marks a critical juncture in the ongoing saga surrounding EchoStar’s spectrum licenses and its federal 5G obligations.

The FCC’s push comes amid an active investigation into whether EchoStar has met its commitments to deploy 5G services using the AWS-4 spectrum. Adding pressure, Elon Musk’s SpaceX has entered the fray, alleging that EchoStar’s efforts in the AWS-4 band have been insufficient. SpaceX is aggressively lobbying the FCC to grant it access to the same spectrum, arguing that it could make better use of the valuable frequencies to advance its satellite and broadband ambitions. …

Zer0Cool

wow dish did nearly everything wrong the past 25 years its insane how they went on such a nose dive while direct is still walking along. i had dish for most of my childhood so its surreal to see it dying

Splitpair

telcodad DISH Network is facing potential trouble as its parent company, EchoStar, comes under scrutiny from the FCC as it questions the company’s use of its cellular and satellite spectrum licenses:

By committing to nationwide cellular they bit off way more than they could chew.

Getting into cellular requires a large amount of capitol outlay and some serious engineering expertise.

It is also a fairly saturated market with the major three that are already in the business.

Splitpair

telcodad FCC Chairman Brendan Carr is pressuring EchoStar’s Chairman Charlie Ergen to sell its AWS-4 spectrum:

And if they fail to comply the FCC can claw back the licenses leaving EchoStar with nothing.

HFB1217

Aside from this issue Dish has failed to renew program contracts with 15+ network shows like CNN, PBS, Some HBO, SyFy, Disney, and a plethora of others.

VerizonLover

And it was all for nothing.

r81984

VerizonLover
This was all part of the original plan. Dish bought spectrum that ATT was not allowed to buy. Eventually they were going to transfer all of it to ATT. ATT was funding Dish and their “cell” network to keep them from bankruptcy.
ATT probably paid Trump off so now is the right time to take over all that spectrum.
Its pay to play now. ATT is already getting $8 billion in tax breaks from trumps garbage bill.
Dish was never going to compete as a new carrier.

Also, TPG bought Directv from ATT and TPG also bailed out DISH by refinancing them to not go bankrupt in 2024 and buying their TV distribution.
All of this is ATTs long con to prevent competition.

AT&T snatches up wireless spectrum licenses from EchoStar for $23 billion
https://www.msn.com/en-us/money/other/at-t-snatches-up-wireless-spectrum-licenses-from-echostar-for-23-billion/ar-AA1LfP53

Crazy Carr is working with ATT on all of this.

Splitpair

r81984 This was all part of the original plan. Dish bought spectrum that ATT was not allowed to buy. Eventually they were going to transfer all of it to ATT. ATT was funding Dish and their “cell” network to keep them from bankruptcy.

Do you have any links to back that up with?

AT&T is a publicly traded company and such is required to reveal any such dealings in their filings with the SEC but I have never heard of or read any such of those actions in any of their SEC filings.

Also if AT&T was not allowed to bid on such frequencies Dish could not transfer them to AT&T without FCC approval which would never happen, Dish could only surrender them back to the FCC to be re-auctioned at a major loss to Dish.

r81984 AT&T snatches up wireless spectrum licenses from EchoStar for $23 billion

Low and Mid-Band Frequencies unrelated to the ones AT&T was not allowed to bid on and that deal was approved by the FCC as AT&T already holds licenses in those bands.

In other words totally above board and a desperate move by Dish to stay afloat.

r81984

Splitpair
This was the obvious plan from day one. DISH went bankrupt buying spectrum it could not afford and building a network that it never intended to operate. ATT has been keeping them going, an inch from bankruptcy in exchange for DISH holding this spectrum. Now is the right time for ATT to take advantage of Trump and Crazy Carr to get approvals for something that never was supposed to be allowed. I bet ATT rents out an entire floor in Trump tower.
The owner of DISH has always allowed his company to be used by ATT in exchange for a decent amount of money.

ATT was not allowed to own these frequencies so there would be competition.
The crazy part is they are doing it all out in the open without any fear of getting sanctions or charged with crimes. And the FCC will now approve what was never supposed to be allowed. Crazy Carr is being corrupt like we all knew he would be.