FCC OKs EchoStar Spectrum Sale, With Conditions

UPDATE The FCC on Tuesday approved EchoStar’s (NASDAQ: SATS) sale of DISH spectrum to AT&T (NYSE: T) and SpaceX, with conditions. The deals, which the agency says collectively surpass $40 billion in value, involve approximately 65 MHz of spectrum to SpaceX and an additional 50 MHz to AT&T. “These two decisions promise to accelerate internet speeds, strengthen competition, and bolster rural service while allowing America to lead the world in next-gen connectivity, including new high-speed offerings direct to smartphones from low-earth orbit satellites,” says the FCC. 

As a condition of its approval, the FCC is requiring EchoStar to establish an escrow account of $2.4 billion that can be drawn upon for qualifying claims. It says, “This encourages the resolution of outstanding claims while leaving the merits of any dispute to the parties or outside fora,” meaning forums.

EchoStar is selling approximately 50 MHz of its spectrum to AT&T for its 5G network. AT&T will acquire approximately 30 MHz of 3.45 GHz mid-band spectrum and approximately 20 MHz of 600 MHz low-band spectrum. 

EchoStar is selling about 65 MHz of its spectrum to SpaceX for Starlink’s next-gen D2D offering. SpaceX will acquire approximately 15 MHz of unpaired, AWS-3 spectrum, 40 MHz of AWS-4 spectrum, and 10 MHz of H-Block spectrum. 

Before Tuesday’s approval, EchoStar told the FCC any conditions on the pending sale of DISH spectrum could scuttle the deals and its purported benefits to the public interest. 

That’s in response to WIA, its members, NATE: the Communications Infrastructure Contractors Association, and its members, as well as other companies, who are part of the American Wireless Builders Coalition. The coalition is composed of more than 40 businesses such as infrastructure providers, communications service providers, contractors, equipment manufacturers, property owners and trade associations. It has been urging the FCC to condition approval of EchoStar’s spectrum deals on EchoStar fulfilling its obligations to affected entities, including the possible use of an escrow account, Inside Towers reported. 

EchoStar called a “mandatory” multi-billion-dollar escrow condition a “transparent attempt to aid the chances of WIA’s members, primarily large tower companies American Tower and Crown Castle, in private contract litigation they have brought against DISH Wireless.” EchoStar said the proposed escrow condition “illegal, unprecedented, and unmanageable.”

The government can’t “put its finger on the scale of disputes” that should rightly be addressed in court, according to the company. If the FCC does this, EchoStar asserts, “it would set a damaging precedent that will open the floodgates for litigants to seek redress against companies with business in front of the Commission while prosecuting their cases in court.”

The coalition has told the Commission that DISH stopped paying its vendors, and that means so far, they’re on the hook for the multi-millions of dollars they spent building the DISH 5G wireless network. They say DISH has been telling tower companies and others that it can exit contracts because the FCC effectively forced EchoStar to sell DISH’s spectrum, amounting to an unforeseeable “force majeure” event leaving DISH unable to pay its vendors.

EchoStar disputes this version, telling the agency the claims that DISH Wireless has not paid its 5G network vendors are “untrue.” EchoStar stated, “They ignore the reality that, since DISH Wireless sent force majeure notices to vendors in September 2025, it has settled disputes with hundreds of those vendors,” EchoStar states. It also says DISH “made hundreds of millions of dollars in payments to them [meaning vendors], including payments for services rendered, as well as formal settlement agreements to address future claims.”

EchoStar further disputes the coalition’s position that the wireless infrastructure industry will be significantly harmed without an escrow condition, saying that ignores statements from members such as Crown Castle have been making to Wall Street. “We have continuous conversations with AT&T and all of our customers. I think we’re very eager for that spectrum that DISH had, to be put to work,” said Crown President/CEO Christian Hillabrant, according to a transcript of Crown’s recent Q1 earnings call. “It’s a good thing for Crown and for the industry as a whole. We have ongoing commercial conversations with nothing to share at this time.”

EchoStar said this means “the company is already working to secure rents on tower space DISH Wireless is no longer able to use. These optimistic prognostications make sense since DISH Wireless was simply leasing space on tower company facilities that were already built for, and used by, other wireless carrier tenants,” EchoStar asserts. “Tower companies did not construct new towers for DISH Wireless, and they are reportedly in talks with new tenants to lease the space.”

Upon the news of the approval, WIA President/CEO Patrick Halley said in a statement, “Today, the FCC put Build America into action. America’s world-leading networks are built on wireless infrastructure and EchoStar’s refusal to honor its obligations threatened that foundation. Chairman Carr listened. Today’s decision ensures critical wireless spectrum is put to its highest use, while supporting the infrastructure providers that make connectivity possible.”

NATE applauded Carr’s “decisive action to free up additional spectrum — strengthening America’s wireless networks, accelerating next-generation connectivity, and reinforcing U.S. leadership in wireless innovation and direct-to-device services. NATE’s member contractors are on the front lines of turning spectrum into connectivity for communities nationwide. Putting more spectrum to work will drive infrastructure deployment, expand broadband in rural and underserved areas, and support the skilled workforce that builds and maintains these networks.”

NATE specifically commended, “Carr and the FCC for requiring a $2.4 billion escrow account to address obligations owed to tower owners, contractors, and infrastructure providers. As a member of the American Wireless Builders Coalition, NATE stood with WIA to ensure companies harmed by unpaid DISH and EchoStar obligations are made whole.” 

“More spectrum. Stronger networks. Workers paid what they’re owed. That’s a win for American connectivity,” the association concluded.