By Colin Kellaher
EchoStar shares fell sharply on Friday after the network operator skipped a $326 million cash interest payment due on some of its notes amid a U.S. regulatory review of its use of cellular and satellite spectrum licenses.
EchoStar shares were recently changing hands at $17.75, down 12%.
The Federal Communications Commission earlier this month told EchoStar that the agency's staff would investigate the company's compliance with federal requirements to build a nationwide 5G network.
EchoStar, which owns the Dish Network pay-TV brand and Boost Mobile's wireless service, on Friday said the uncertainty over its spectrum rights caused by the probe has frozen its ability to make decisions regarding its Boost business, including continued network buildout, and is forcing the company to re-evaluate the deployment of its resources.
The Englewood, Colo., company this week filed a response with the FCC stating that the agency's actions have created "a dark cloud of uncertainty" and asking the agency to confirm that the company has satisfied its commitments.
EchoStar's decision to skip the interest due Friday on its 10.75% senior spectrum secured notes due 2029 kicks off a 30-day grace period before the non-payment constitutes a default. The company said the move allows time for the FCC to provide the relief requested in its response prior to the expiration of the grace period.
Write to Colin Kellaher at colin.kellaher@wsj.com
(END) Dow Jones Newswires
May 30, 2025 09:57 ET (13:57 GMT)
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