FCC Chairman Brendan Carr has issued what Bloomberg reports as a “best and final” offer to Dish’s parent company EchoStar’s Chairman Charlie Ergen, urging the company to sell its AWS-4 spectrum holdings, according to a report published Wednesday. While the specifics remain unclear, it is uncertain whether Carr’s proposal demands a full or partial divestiture of EchoStar’s AWS-4 spectrum, which operates in the 2GHz band (2000-2020 MHz and 2180-2200 MHz). This development marks a critical juncture in the ongoing saga surrounding EchoStar’s spectrum licenses and its federal 5G obligations.
The FCC’s push comes amid an active investigation into whether EchoStar has met its commitments to deploy 5G services using the AWS-4 spectrum. Adding pressure, Elon Musk’s SpaceX has entered the fray, alleging that EchoStar’s efforts in the AWS-4 band have been insufficient. SpaceX is aggressively lobbying the FCC to grant it access to the same spectrum, arguing that it could make better use of the valuable frequencies to advance its satellite and broadband ambitions.
Carr’s recent remarks align closely with SpaceX’s position. In an interview with CNBC last week, he emphasized that discussions with EchoStar are ongoing but pointedly noted that Ergen controls “a lot of spectrum there that, frankly, has not been put to its highest and best use in terms of loading the spectrum.” Carr’s comments signal a growing impatience within the FCC, which is tasked with ensuring that licensed spectrum is utilized efficiently to meet the nation’s connectivity needs.
For EchoStar, the pressure is mounting. The AWS-4 spectrum is a critical asset, and any forced sale or revocation could significantly impact its business strategy and market position. Meanwhile, SpaceX’s involvement highlights the intensifying competition for spectrum resources, particularly as demand for 5G and satellite-based internet surges. The outcome of Carr’s offer and the FCC’s investigation could reshape the telecommunications landscape, determining who controls a key piece of the nation’s wireless future.
As the situation unfolds, industry observers are watching closely. Will EchoStar comply with Carr’s ultimatum, or will it risk losing its spectrum licenses altogether? The clock is ticking for Ergen to respond.
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