EchoStar In Spotlight Again! FCC Drops Review Of 5G Obligations After SpaceX Deal

EchoStar Corp. (SATS) has received notice from the Federal Communications Commission (FCC) that an ongoing regulatory review concerning its 5G service obligations in the United States has officially been closed. 

The latest development follows the company's announcement on Monday of a definitive agreement to divest a major portion of its wireless spectrum assets to Elon Musk’s SpaceX in a strategic transaction valued at approximately $17 billion. 

EchoStar stock traded 2% higher in Tuesday’s premarket. On Stocktwits, retail sentiment around the stock remained in ‘bullish’ territory, while message volume improved to ‘high’ from ‘normal’ over the past 24 hours. The stock experienced a staggering 6,933% explosion in user message count in 24 hours. 

The FCC initially launched its review in early May, raising concerns over EchoStar’s 5G rollout commitments, as well as its use of spectrum in the 2GHz band and its request for a buildout extension filed in September 2024. 

The agency stated that the buildout and deployment requirements are crucial to ensuring both rural and urban regions have equitable access to next-generation wireless infrastructure. The agency communicated its concerns in a letter dated May 9. But in a follow-up correspondence sent on September 8, the FCC chair confirmed that the staff had been instructed to end the investigation.

These include dismissing a petition from VTel that sought reconsideration, affirming that EchoStar holds exclusive terrestrial and Mobile Satellite Service (MSS) rights for the AWS-4 spectrum it currently operates under, and confirming that the company has met all associated buildout and performance obligations.

EchoStar stock has gained over 252% year-to-date and over 272% in the last 12 months. 

Also See: Apple iPhone 17 Event Today: What To Expect And Where To Watch ‘Awe Dropping’ Launch

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Share

·

Add us on