EchoStar Skips $183M Interest Payment Amid FCC Probe, Shares Fall 3.6%
ByAinvest
Monday, Jun 2, 2025 5:40 pm ET1min read
SATS--
The FCC initiated a review of EchoStar’s adherence to its federal commitments on May 9, 2025, focusing on its buildout extension from September 2024 and mobile-satellite service utilization in the 2GHz band. EchoStar responded to the FCC’s letter and public notices on May 27, which is publicly available on the FCC’s website.
The uncertainty surrounding EchoStar’s spectrum rights has hindered its decision-making capabilities, particularly for its Boost business, impacting network buildout and necessitating a reassessment of its business plan and resource deployment. Consequently, EchoStar chose not to make the interest payment to allow the FCC time to respond to its request for relief before the grace period ends.
EchoStar has affirmed in its SEC and FCC filings that it has met all necessary 5G buildout milestones. However, the current situation with the FCC has cast doubt on the company’s future operations, leading to a 3.6% decline in its stock price. The 7.75% note due 2026 dropped over 1 cent to 84 cents on the dollar.
The company aims to continue its network buildout and expand its Boost business and MSS service with confidence, pending the FCC’s decision. EchoStar is controlled by billionaire Charlie Ergen.
References:
[1] https://uk.investing.com/news/stock-market-news/echostar-stock-falls-amid-fcc-review-and-missed-payment-4112099
EchoStar Corp. is skipping interest payments on $183 million bonds due to "uncertainty" raised by an FCC review of its compliance with 5G network obligations. The company has a 30-day grace period to make the payment. Shares fell 3.6% and the 7.75% note due 2026 dropped over 1 cent to 84 cents on the dollar. EchoStar is controlled by billionaire Charlie Ergen.
EchoStar Corp. (NASDAQ: SATS) has decided to forgo an interest payment on $183 million of bonds due to uncertainty arising from an ongoing review by the Federal Communications Commission (FCC) regarding its compliance with 5G network obligations. The company has a 30-day grace period to make the payment.The FCC initiated a review of EchoStar’s adherence to its federal commitments on May 9, 2025, focusing on its buildout extension from September 2024 and mobile-satellite service utilization in the 2GHz band. EchoStar responded to the FCC’s letter and public notices on May 27, which is publicly available on the FCC’s website.
The uncertainty surrounding EchoStar’s spectrum rights has hindered its decision-making capabilities, particularly for its Boost business, impacting network buildout and necessitating a reassessment of its business plan and resource deployment. Consequently, EchoStar chose not to make the interest payment to allow the FCC time to respond to its request for relief before the grace period ends.
EchoStar has affirmed in its SEC and FCC filings that it has met all necessary 5G buildout milestones. However, the current situation with the FCC has cast doubt on the company’s future operations, leading to a 3.6% decline in its stock price. The 7.75% note due 2026 dropped over 1 cent to 84 cents on the dollar.
The company aims to continue its network buildout and expand its Boost business and MSS service with confidence, pending the FCC’s decision. EchoStar is controlled by billionaire Charlie Ergen.
References:
[1] https://uk.investing.com/news/stock-market-news/echostar-stock-falls-amid-fcc-review-and-missed-payment-4112099
Stay ahead of the market.
Get curated U.S. market news, insights and key dates delivered to your inbox.
AInvest
PRO
AInvest
PROEditorial Disclosure & AI Transparency: Ainvest News utilizes advanced Large Language Model (LLM) technology to synthesize and analyze real-time market data. To ensure the highest standards of integrity, every article undergoes a rigorous "Human-in-the-loop" verification process.
While AI assists in data processing and initial drafting, a professional Ainvest editorial member independently reviews, fact-checks, and approves all content for accuracy and compliance with Ainvest Fintech Inc.’s editorial standards. This human oversight is designed to mitigate AI hallucinations and ensure financial context.
Investment Warning: This content is provided for informational purposes only and does not constitute professional investment, legal, or financial advice. Markets involve inherent risks. Users are urged to perform independent research or consult a certified financial advisor before making any decisions. Ainvest Fintech Inc. disclaims all liability for actions taken based on this information. Found an error?Report an Issue
Comments
No comments yet