FCC to investigate Dish Network’s compliance with federal requirements to build a nationwide 5G network

In a letter to Charlie Ergen, the chairman and co-founder of network operator EchoStar, Federal Communications Commission (FCC) chairman Brendan Carr wrote that the agency’s staff would investigate the company’s compliance with requirements to build a nationwide 5G network as per the terms of its federal spectrum licenses. EchoStar owns both Dish Network and Boost Mobile’s wireless service. Dish has said its 5G network covers more than 268 million people and has met all of its regulatory requirements.

In 2019, the U.S. government set several construction milestones for Dish Network to maintain cellular licenses worth billions of dollars. The company agreed to meet specific buildout obligations in connection with a number of spectrum licenses across several different bands. In particular, the FCC agreed to relax some of EchoStar’s then-existing buildout obligations in exchange for EchoStar’s commitment to put its licensed spectrum to work deploying a nationwide 5G broadband network. EchoStar promised—among other things—that its network would cover, by June 14, 2025, at least 70% of the population within each of its licensed geographic areas for its AWS-4 and 700 MHz licenses, and at least 75% of the population within each of its licensed geographic areas for its H Block and 600 MHz licenses.

“The FCC structured the buildout obligations to prevent spectrum warehousing and to ensure that Americans would gain broader access to high-speed wireless services, including in underserved and rural areas.”

Ergen said that the company has worked collaboratively with FCC leaders since it launched its first pay-TV satellite more than 30 years ago. He added that EchoStar’s network creates American jobs and furthers a critical Trump administration priority of ensuring “the United States is at the forefront of wireless leadership and that our infrastructure is free of Chinese vendors.” Full text of his statement is below.

Ergen is reportedly working to pivot his satellite TV business from a declining pay-TV model to a “direct-to-device” business that connects smartphones from space, among other services. Carr laid out plans for the agency to seek public comment on how mobile-satellite services could use some spectrum that EchoStar currently holds. EchoStar is among a group of satellite companies that already hold licenses to provide mobile-device links, though they lack the dense network of modern satellites that Starlink has at its disposal.

SpaceX said in an April letter that EchoStar’s spectrum in the 2 Gigahertz band “remains ripe for sharing among next-generation satellite systems.” The company urged the commission to launch a new rule-making process to add new competitors to the band. EchoStar has accused SpaceX of a spectrum land grab.

Separately, Dish Network has spent years wiring thousands of cellphone towers to help Boost become a wireless operator that could rival AT&T, Verizon and T-Mobile, but the project has been slow-going. Boost’s subscriber base has shrunk in the five years since Ergen bought the brand from Sprint so it is not at all competitive with its big three U.S. cellular rivals.

Dish Network under FCC microscope, Art by Midjourney for Fierce Network

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Charlie Ergen’s Statement in Response to FCC Letter:

“We have worked collaboratively with FCC leaders since we launched our first DBS satellite more than 30 years ago. Today, we are proud to have invested tens of billions to deploy the world’s largest 5G Open RAN network – primarily using American vendors – across 24,000 5G sites, to offer broadband service to over 268 million people nationwide. Through this deployment, which is possible thanks to scores of tower climbers, engineers, and partners, we have met or exceeded all of the commitments we have entered into with the FCC to date. And our work is not yet finished as we continue to deploy and invest in our network. Not only does our network create American jobs and a competitive alternative to incumbent wireless carriers, it also furthers another critical Trump Administration priority: deploying Open RAN to ensure the United States is at the forefront of wireless leadership and that our infrastructure is free of Chinese vendors. Thanks to our nationwide pricing model and agreements with partner carriers, Boost Mobile is available at affordable prices to Americans across the country – including in rural and hard to reach communities. Indeed, our new buildout deadlines – which are consistent with FCC practice under the past two Administrations where the Wireless Bureau granted hundreds of buildout extensions – came with additional, substantial pro-competitive commitments that EchoStar has fulfilled. As we continue to invest in and expand our terrestrial network deployment, we are also working to provide Open RAN direct-to-device satellite technology, bringing additional connectivity to all Americans in the U.S. and around the world.

EchoStar worked tirelessly to establish 3GPP NTN standard for D2D. With D2D 3GPP standards now complete, EchoStar has the global capability in terms of expertise, spectrum, and ITU priority to bring this to fruition. We are now testing new S-band services in both North America and Europe, and this year we launched a LEO satellite with several more planned in the coming months. We look forward to continuing this important work to help the Administration and FCC continue to deliver for the American people.”