EchoStar considers bankruptcy in battle with FCC
EchoStar considers bankruptcy in battle with FCC
The company’s decision not to make a scheduled interest payment could mean Chapter 11 is just around the corner.
The parent company of DISH Network and Sling TV isn’t too happy with the Federal Communications Commission (FCC) these days. That company is EchoStar, which is blaming the FCC for its decision to skip a scheduled interest payment while a review of its wireless business is being undertaken. As of June 2025, The Wall Street Journal reports that EchoStar is even considering filing for bankruptcy.
Key Details:
- Spread the love: The FCC is reviewing EchoStar’s compliance with rules regarding its 5G network coverage.
- Pushing back: EchoStar cites the review as the reason for its decision not to make a previously-scheduled interest payment.
- Headed for Chapter 11?: EchoStar is reportedly considering a bankruptcy declaration.
The FCC informed EchoStar in early May that it would be conducting a review of the company’s compliance with regulations that require it to meet certain 5G guidelines as it continues to build out its Boost Mobile business across the United States. EchoStar maintains that it has complied with all rules regarding the offering of 5G services in its mobile expansion.
In response to that review, EchoStar elected not to make a cash interest payment of approximately $326 million that was due on May 30, and in a statement, the company made it clear that the FCC review was the main reason that it came to that decision.
“This uncertainty over our spectrum rights has effectively frozen our ability to make decisions regarding our Boost business, including continued network buildout and adversely impacts our ability to implement and adjust our overall business plan and requires us to re-evaluate the deployment of our resources,” EchoStar said.
The decision to skip the payment could be intended to help it build leverage against the FCC and the governmental organization’s chairman, Brendan Carr. It could push EchoStar closer to bankruptcy, a move that would further disrupt the already-fragile pay-TV ecosystem and lead to a long, drawn-out Chapter 11 process that EchoStar may never emerge from. WSJ exclusively reported that EchoStar is thinking about pursuing such a course of action as of June 9.
EchoStar has been counting on its wireless and broadband businesses to help it continue into a future where pay-TV is no longer its main source of revenue. That future is coming fast, and if EchoStar plans to succeed, it must prove to the FCC that it is meeting 5G benchmarks, or face possible bankruptcy proceedings.
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