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.