By Kasper Foley 
EchoStar Skips $326M Interest Payment Amid FCC Probe, Jeopardizing 5G Expansion
EchoStar Corporation has withheld a $326 million interest payment on its senior notes due in 2029, citing uncertainty from an ongoing FCC investigation into its 5G obligations. This triggers a 30-day grace period, ending June 29, 2025, before the company risks default.
The FCC’s scrutiny revolves around EchoStar’s compliance with its 2 GHz spectrum buildout requirements. The investigation has effectively stalled the company’s 5G cell tower expansion and left its Boost Mobile operations in limbo. With $30 billion in debt and a debt-to-equity ratio over 700%, EchoStar faces mounting pressure despite holding $2.53 billion in cash and a $1.6 billion service backlog.
If the FCC rules against EchoStar, it could lose critical spectrum licenses or face fines—potentially pushing the company toward bankruptcy. A favorable outcome, however, could revive its buildout plans and stabilize investor sentiment.
EchoStar’s situation underscores the fragile intersection of regulatory oversight and infrastructure investment in the high-stakes 5G race.
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