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Trump Urges EchoStar, FCC Chair to Resolve Wireless Spectrum Dispute

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President Donald Trump personally urged EchoStar Chairman Charlie Ergen and Federal Communications Commission (FCC) Chair Brendan Carr to come to an agreement regarding the future of EchoStar’s wireless spectrum licenses, Bloomberg reported on Friday. Following the news, EchoStar’s shares surged 52% in after-hours trading.

The discussions included a meeting at the White House on Thursday with Ergen and a phone call to Carr, who later joined the meeting in person, according to Bloomberg. Neither the White House nor EchoStar commented on the report, and the FCC did not immediately respond to Reuters’ requests for comment.

EchoStar has been attempting to protect its portfolio of wireless spectrum licenses from potential revocation by the FCC amid ongoing regulatory scrutiny. Last year, satellite TV provider DirecTV abandoned its plan to acquire EchoStar’s satellite television business, which includes competitor Dish TV, due to a failed debt-exchange offer.

In May, the FCC announced it was investigating EchoStar’s compliance with obligations to provide 5G service in the United States, focusing on the company’s extension requests for network buildout and mobile satellite services.

EchoStar criticized the FCC’s actions, stating that the public disclosure of the investigation was harming its network deployment and threatening its viability as a wireless service provider. The company warned that reversing prior spectrum authorizations—licenses it paid billions for and invested heavily in—would contradict established FCC precedent.

Previously, EchoStar revealed it had missed approximately $500 million in interest payments, attributing the default to uncertainties caused by the FCC’s ongoing review.

EchoStar Considers Bankruptcy Amid FCC Spectrum Review

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EchoStar is preparing for a potential Chapter 11 bankruptcy filing as it seeks to protect its valuable wireless spectrum licenses from possible revocation by U.S. federal regulators, according to a report by the Wall Street Journal citing sources familiar with the situation. The telecommunications services company has not publicly commented on the report.

The Federal Communications Commission (FCC) launched an investigation last month into whether EchoStar is in compliance with federal requirements to provide 5G service across the United States. The FCC questioned EchoStar’s request for a buildout extension as well as its adherence to mobile-satellite service obligations.

In a recent regulatory filing, EchoStar stated that the FCC’s investigation has significantly constrained its ability to make strategic business decisions related to its Boost Mobile unit, hindering growth and investment. The uncertainty surrounding the FCC’s review has already led EchoStar to miss approximately $500 million in interest payments.

The financial pressures facing EchoStar have been mounting. Last year, satellite TV provider DirecTV canceled its agreement to acquire EchoStar’s satellite television business, which includes rival Dish TV, after a debt-exchange offer failed. The collapse of that deal removed a potential lifeline for the company.

EchoStar’s spectrum licenses are among its most valuable assets. A bankruptcy filing under Chapter 11 would allow the company to restructure its debt while attempting to shield these licenses from being revoked during the FCC’s ongoing review.

The situation underscores the broader challenges facing telecommunications companies as they navigate both financial strain and increasingly aggressive regulatory scrutiny, particularly as the rollout of next-generation 5G networks accelerates across the United States.