The transaction builds on the $17 billion agreement the companies entered into in September which sold AWS-4 and H-block spectrum licences to Elon Musk-owned SpaceX. The deal will close after receiving customary regulatory approvals.

Hamid Akhavan served as president and CEO of the company but is now chief of EchoStar Capital with former chair Ergen resuming the roles of president and CEO of EchoStar.

EchoStar Capital will be responsible for investing new capital from the recent spectrum transactions “in order to fuel future growth opportunities for EchoStar Corporation”.

Ergen now assumes the operating responsibility for the pay-TV and wireless business units.

“EchoStar will soon be in the unique position of having substantial available capital, vastly changing its scope of opportunities,” Akhavan stated. “Through EchoStar Capital we will fuel EchoStar’s growth into new and complementary arenas, beyond its successful pay-TV, wireless and enterprise business units.”

Akhavan noted the latest transaction with SpaceX, in addition to previously announced spectrum transactions and commercial agreements, “will strengthen EchoStar’s ability to develop new business opportunities and growth in value for our shareholders”.

 “The combination of AWS-3 uplink, AWS-4 and H-block spectrum from EchoStar with the rocket launch and satellite manufacturing capabilities from SpaceX accelerates the realisation of powerful and economical direct-to-cell service offerings for consumers and enterprises worldwide, including our Boost Mobile customers,” he stated.

Tim Farrar, an analyst at TMF Associates, told Mobile World Live the deal gives SpaceX more terrestrial options with Band 70 and it also might make it easier for Verizon to buy EchoStar’s paired AWS-3.

He said the rumour SpaceX will buy Apple-backed Globalstar for $10 billion seems less likely now. Bloomberg reported 30 October Globalstar was exploring a potential sale and held early discussions with SpaceX.

Q3 earnings
In its Q3 earnings results, the company reported a $16.5 billion impairment charge from decommissioning parts of its 5G network that are no longer needed for its Boost Mobile service following spectrum sales to AT&T and SpaceX.

The Federal Communications Commission ended its investigation into EchoStar’s use of spectrum after those sales. EchoStar stated it was moving to a hybrid MNO model after selling off the spectrum licences.

EchoStar added 232,000 Boost Mobile wireless subscribers in the quarter compared to a loss of 297,000 a year ago. Revenue for the wireless business came in at $938 million, compared to $898 million.

AT&T chair and CEO John Stankey stated on the company’s Q3 earnings call the company it was starting to see more of EchoStar’s Boost Mobile wireless customers moving to its network.

The post EchoStar strikes $2.6B spectrum deal with SpaceX appeared first on Mobile World Live.

The strategic pivot comes after EchoStar sold its 3.45GHz and 600MHz spectrum licences to AT&T for $23 billion in August and later offloaded its AWS-4 and H-block spectrum to SpaceX for $17 billion last week. “If you transacted on either one of those pieces of spectrum, you were forced to do the second transaction,” Akhavan said today (15 September).

The spectrum sales effectively ended EchoStar’s ambition to become the fourth major US mobile network operator. During the presentation, the CEO described the shift as “a forced pivot,” explaining that while the company believed its holdings could deliver more value over time, FCC pressure made action unavoidable. “Once you start losing a critical mass of spectrum… you are no longer competitive”, added Akhavan.

The result is an EchoStar that will no longer operate a traditional wireless network, instead pivoting to a hybrid MNO/MVNO model, taking advantage of partnerships with AT&T and SpaceX. Boost Mobile will remain the primary customer-facing brand under this approach, with Akhavan emphasising that the company is committed to expanding its mobile phone business and sees it as a central growth driver: “We have great hopes for Boost.”

Ignorant
Also speaking at the event, co-founder and chairman Charlie Ergen indicated EchoStar now has both the experience and capital to expand Boost more aggressively. “We actually know what we’re doing now. We were the most ignorant people in wireless four or five years ago… we’ve learned a lot of hard lessons,” noted Egren.

Despite exiting network ownership, Akhavan highlighted the company’s long-standing focus on connectivity. “That’s been the core alley and runway for the past 40 years. We won’t give up any of that heritage,” he said. Pointing to EchoStar’s long-standing commitment to mobile tech, he stated, “you should hope to see an expansion of that if we are successful in implementing the strategy we’re talking about here.”

Akhavan also confirmed EchoStar’s corporate brand will remain purely a holding company identity and will not be consumer-facing. Customer-facing operations will continue under their established standalone brands, including Boost Mobile, Dish, Sling and HughesNet.

The transactions, which brought in billions in cash and equity, including $8.5 billion in SpaceX stock, mark a financial reset. Ergen framed the SpaceX equity as a long-term play: “If I could make one investment other than ourselves, it would be in SpaceX because they’ve got 90 per cent of the launch capability in the world today,” he stated, citing the Elon Musk-owned company’s sophisticated manufacturing capabilities. “We were going to try to interface with them anyway.”

The post EchoStar charts asset-light future after spectrum sales appeared first on Mobile World Live.

In May, the FCC called out EchoStar’s lack of use of its AWS-4 spectrum licences and 5G network build out following a complaint by SpaceX.

SpaceX appeared to have an ally in FCC chair Brendan Carr, who pressed EchoStar to part with spectrum it wasn’t using.

EchoStar stated in a filing the same month the FCC probe effectively froze its ability to make decisions regarding the company’s Boost Mobile business

A meeting between EchoStar co-founder and chair Charlie Ergen, Carr and US President Donald Trump proved to be a tipping point for the satellite player selling spectrum which SpaceX maintained was underutilised.

Carr wrote in a letter to Ergen yesterday (8 September) which stated he directed FCC staff to bring the agency’s investigation to a conclusion.

He also noted EchoStar has met the agency’s network buildout requirements, although EchoStar is now shutting down all but the core of its open RAN-based 5G network.

The FCC chair also directed the staff to confirm EchoStar’s exclusive terrestrial and MSS rights over the AWS-4 spectrum it is selling to SpaceX for $17 billion.

EchoStar noted in a filing today (9 September) the deals with AT&T and SpaceX continue to remain subject to FCC approvals.

The post FCC drops EchoStar probe after Starlink, AT&T deals appeared first on Mobile World Live.

The deal followed AT&T striking a deal worth $23 billion last month with EchoStar for the former’s 3.45GHz and 600MHz spectrum licences.

“The great spectrum reshuffle, culminating in the EchoStar/SpaceX transaction, has irrevocably altered the competitive landscape of the US telecommunications and satellite industries,” stated Roger Entner, founder and analyst at Recon Analytics, in a research note today (8 September).

“It has created clear winners and losers, solidified a new market structure, and set the strategic trajectories for every major player for the remainder of the decade.”

SpaceX will pay EchoStar $8.5 billion in cash and up to $8.5 billion in stock shares. It also agreed to fund a total of about $2 billion in cash interest payments on EchoStar’s debt through to November 2027.

Ahead of the AT&T and SpaceX deals, EchoStar faced a debt load of approximately $26.4 billion.

SpaceX and EchoStar will also enter into a long-term commercial agreement, which will enable EchoStar’s Boost Mobile subscribers to access SpaceX’s Starlink direct-to-cell (D2C) service. 

The deal also appears to blow up EchoStar’s $13 billion contract with MDA Space to build low Earth orbit (LEO) birds for a new non-terrestrial network (NTN) for its direct-to-device (D2D) satellite constellation.

Here’s a breakdown of the perceived winners and losers related to the EchoStar and SpaceX deal and some of the cascading effects

Winners
Entner noted SpaceX and EchoStar co-founder and chair Charlie Ergen are the clear winners from the deal.

For Ergen, cash-strapped EchoStar gets a lifeline for paying off its debt while benefitting from a D2C service for its Boost Mobile customers.

Entner stated the cash and stock structure is “a work of strategic financial engineering” because SpaceX did not need to go into debt to build out its Starlink satellite constellation.

“Furthermore, by accepting a significant equity stake in one of the world’s most valuable private companies,” Ergen “has transformed what could have been a simple liquidation of assets into a long-term investment”, he noted.

Entner explained the deal is “a stunning financial victory” for Ergen borne from the ashes of the company’s failure to become the fourth largest operator in the US.

SpaceX has been in hot pursuit of EchoStar’s AWS-4 spectrum, contending earlier this year Ergen was squatting on the licences with no immediate plan to use them, a position backed by Federal Communications Commission (FCC) chair Brendan Carr.

While the H-block licenses are a valuable addition for SpaceX, Entner said the AWS-4 spectrum is widely considered the “golden band” for D2C services since it was originally allocated for mobile satellite service (MSS).

T-Mobile US is providing SpaceX’s Starlink birds with its PCS G-block which is currently being used for the operator’s T-Satellite satellite-based text messaging service.

“This acquisition is transformative, enabling SpaceX to develop and deploy a next-generation Starlink D2C constellation capable of moving beyond the limitations of the current text-only service,” he explained. “With dedicated, purpose-built spectrum, SpaceX can now credibly pursue its roadmap of offering reliable voice, streaming-grade data, and robust IoT capabilities directly to unmodified smartphones, a quantum leap in service capability.”

Entner also cast T-Mobile as a winner in the deal since it will have access to near-total coverage across the US if the agreement gains regulatory approvals.

“T-Mobile will soon be able to market a service that offers virtually seamless connectivity, eliminating terrestrial dead zones for core voice and data services,” Entner noted. “This ‘ubiquity ‘feature becomes a formidable competitive moat.”

“It creates a stickier service that could significantly reduce customer churn, particularly among high-value subscribers in rural areas, outdoor enthusiasts, and enterprise clients in sectors like logistics, agriculture, and transportation.”

The expanded service could also lead to AT&T and Verizon’s mobile customers churning over to T-Mobile.

Tim Farrar, an analyst at TMF Associates, said in his research note the EchoStar deal has now made it much harder for Starlink competitors, such as AST SpaceMobile, Globalstar and Lynk Global, “to move forward when they can’t possibly compete with SpaceX’s speed in bringing new satellites to market.”

As a further competitive advantage, Entner noted Starlink also benefits from access to SpaceX’s rockets which deliver its birds into low-earth orbit (LEO.)

Losers
Verizon and AT&T’s ambition to provide D2C services to their customers through partnerships with AST SpaceMobile using their US 850MHz spectrum is now at risk for falling farther behind.

Farrar noted AST SpaceMobile is struggling with delays, including the launch of its prototype FM1 satellite last month ahead of future deployments of its second-generation Block2 Bluebird satellites.

“And AST needs to raise over $400M in the next few weeks to make the $420M payment due to Viasat at the end of October,” Farrar stated.

He explained the one piece of good news for AST SpaceMobile related to the EchoStar deal with SpaceX is the former may no longer retain its European Union 2GHz licence ”though there will undoubtedly be litigation if it is cancelled”.   

If it is cancelled, he noted AST SpaceMobile and partner Vodafone Group will be in competition with SES and Lynk Global for “what will presumably be a paired 10MHz licence, assuming Viasat retains its own paired 15MHz licence”.

Farrar explained the deal also came before tomorrow’s (9 September) launch of Apple’s device launch.

He cited a story published by The Information in June which reportedly said Apple employees working on the company’s direct-to-cell project with satellite partner Globalstar expressed concern the iPhone maker could opt to partner with SpaceX instead.

Globalstar announced plans for its new C-3 satellite system in November 2024, a strategy which included Apple paying the company up to $1.1 billion to boost non-terrestrial connectivity to iPhones. Farrar noted Globalstar’s new satellites have been delayed.

“While this might not be on the agenda tomorrow, decisions about the future of the Apple/Globalstar partnership and the new C-3 constellation will be on everyone’s minds,” he said. “The cancellation of the EchoStar D2D constellation was already a major blow for MDA, but any decision by Apple to pull back from the C-3 constellation would be even more devastating.”

He explained SpaceX wants Apple to cooperate instead of pursuing the C-3 constellation because the H-block and AWS-4 spectrum is not supported by current phones.

If Apple does not decide to abandon its partnership with Globalstar in favour of an arrangement with SpaceX, Farrar stated the latter could opt to develop its own mobile device, which Elon Musk has previously teased.

Farrar noted Musk has discussed Tesla building the phone and providing satellite connectivity through Starlink.

“He has publicly toyed with the idea on social media at times, but he has also made it clear he doesn’t want to deal with the headaches of such a monumental effort,” Farrar explained.

“Finally, I think we can now look to EchoStar to gradually wind down the rest of its operations and sell off its remaining spectrum. The remaining major block is AWS-3, which Verizon might pick up in the next few months, potentially at a discount to the $10 billion EchoStar paid.”

Entner stated AT&T and Verizon’s D2C success now depends on them finding a third-party partner since “they are starting from behind,” or they could opt to join the Starlink camp “under the premise of ‘if you can’t beat them, join them’.

The post Analysis: EchoStar, SpaceX deal resets satellite, mobile sectors appeared first on Mobile World Live.

It will pay EchoStar $8.5 billion in cash and up to $8.5 billion in SpaceX stock. SpaceX also agreed to fund a total of about $2 billion in cash interest payments on EchoStar’s debt through to November 2027.

Prior to reaching a $23 billion deal with AT&T last month, EchoStar faced a debt load of approximately $26.4 billion, according to Roger Entner, founder and analyst at Recon Analytics.

SpaceX coveted EchoStar’s AWS-4 spectrum for its Starlink satellite-based broadband service. It contended the spectrum owned by Charlie Ergen-backed EchoStar was underutilised.

Matters came to a head in May when the Federal Communications Commission (FCC) called out EchoStar’s use of  AWS-4 spectrum licences. SpaceX had a strong ally in FCC chair Brendan Carr, who presented EchoStar’s Ergen with his “best and final offer” following a meeting by both with President Donald Trump in June.

The impact for SpaceX is massive, according to Entner. He posted on LinkedIn the real winner of EchoStar’s decision to shutter most of its open RAN-based network is Starlink and partner T-Mobile US.

“A partnership between Starlink and T-Mobile using this 40MHz block would create a massive, ubiquitous network’ that blows competitors’ satellite strategies completely out of the water and cements T-Mobile’s speed advantage for years,” he stated.

While Starlink enjoys an exclusive US partnership with T-Mobile, Musk posted on X last year the satellite operator will seek deals with rival mobile service providers.

As part of the deal, SpaceX and EchoStar will enter into a long-term commercial agreement, which will enable EchoStar’s Boost Mobile subscribers to access SpaceX’s Starlink direct-to-cell service. 

The agreement also calls into question EchoStar’s $13 billion contract with MDA Space to build low Earth orbit (LEO) birds for a new non-terrestrial network (NTN) for its direct-to-device (D2D) satellite constellation. EchoStar seemingly no longer needs those birds due to the partnership with SpaceX.

The two companies stated the deal will close once it receives customary regulatory approvals.

The post SpaceX snags EchoStar spectrum for $17B appeared first on Mobile World Live.

Indeed, Semafor reported last week (26 August) T-Mobile previously expressed interest in all of EchoStar’s spectrum before AT&T struck its $23 billion deal for rights to the satellite player’s 3.45GHz and 600MHz licences. It is reportedly still interested in some of the remaining assets.

The news agency reported T-Mobile, AT&T and EchoStar were in preliminary talks which would have allowed the operators to split the satellite player’s spectrum holdings.

SpaceX covets EchoStar’s AWS-4 spectrum for use on its low Earth orbit (LEO) satellites as part of a goal of providing its own coverage to mobile devices outside of partnerships with operators such as T-Mobile.

EchoStar co-founder and chair Charlie Ergen is a well-known hoarder of spectrum, but his company’s decision to shutter its greenfield, open RAN-based network, along with a $22 billion debt load, marks the beginning of spectrum sales.

Tim Farrar, an analyst at TMF Associates, explained in a research note EchoStar still owns 30MHz of 3.45GHz spectrum and approximately 20MHz of 600MHz spectrum, both of which were purchased in government auctions.

The crown gem of EchoStar’s spectrum is AWS-4 in the 2GHz band, which SpaceX contends is underutilised.

“Going forward it is therefore quite likely that there will be further transactions, perhaps just between AT&T and T-Mobile, or perhaps involving EchoStar’s key midband holdings in AWS-3 and AWS-4,” Farrar stated.

“However, we are highly skeptical about suggestions SpaceX would bid for the AWS-4 2GHz MSS spectrum, or that SpaceX wants to run a terrestrial wireless network, at least at a price level that EchoStar would take remotely seriously.”

He noted AT&T is less specific about its plans for the 600MHz band, which he previously thought would be of more interest to T-Mobile.

“However, it is not implausible to think that AT&T might want to use the 600MHz spectrum as leverage for a trade with T-Mobile to allow AT&T to acquire T-Mobile’s 3.45GHz and C-band spectrum,” he explained.

AWS-4
In May, the Federal Communications Commission (FCC) called out EchoStar’s lack of use of its AWS-4 spectrum licences following a complaint by SpaceX.

SpaceX appeared to have an ally in FCC chair Brendan Carr, who pressed EchoStar to part with spectrum it wasn’t using. A meeting between Ergen, Carr and US President Donald Trump may have smoothed the path for the sale to AT&T.

“AWS-4 is the elephant in the room,” stated LightShed Partners analyst Walter Piecyk in a research note. “For SpaceX, access to AWS-4 could be transformative. The spectrum would supercharge Starlink’s direct-to-device ambitions, potentially enabling streaming-grade sat-to-phone services.”

Farrar estimated the AWS-4 spectrum to be worth around $20 billion but Semafor reported Ergen values it at $30 billion.

“SpaceX may see AWS-4 as critical to its sat-to-phone roadmap, but SpaceX is unlikely to pay anything close to $25 billion,” Piecyk stated. “Instead, its leverage lies with the FCC”.

“A sympathetic regulator could push for shared use or apply pressure on EchoStar by threatening to revoke rights.”

Farrar posted on X Verizon should buy EchoStar’s AWS-3 and lease AWS-4 in urban areas, while continuing to hold onto the latter to build its non-terrestrial network (NTN) for a direct-to-device (D2D) satellite constellation.

“But if TMUS [T-Mobile] wins the bidding this would change,” he said on X.

He explained if T-Mobile bought all of EchoStar’s AWS-4 the latter will likely abandon its D2D constellation while allowing the mobile operator to provide more spectrum to partner Starlink for its satellite service.

“AT&T has already used portions of AWS-4, briefly lighting up spectrum during Covid,” Piecyk stated. “That suggests AT&T radios can handle at least half the band without new capex. In a spectrum-scarce world, that’s a significant edge that neither T-Mobile nor Verizon currently enjoys.”

He noted while Verizon is not an obvious first mover for EchoStar’s remaining spectrum, “it has a history of opportunistic spectrum grabs at high prices”.

 “It should now feel some additional pressure given AT&T’s moves.”

Peter Adderton, the founder of Boost Mobile and now CEO and founder of operator MobileX, told The New York Post another scenario could include the Trump administration taking a stake in SpaceX in return helping it acquire EchoStar’s AWS-4 spectrum.

The post Analysis: Scramble for EchoStar spectrum ramps up appeared first on Mobile World Live.

Piecyk stated on LightShed Partners’ site a decision by EchoStar to decommission its open RAN network and convert Boost Mobile to a hybrid MNO running on AT&T’s network “is just the first step and the process is far from complete”.

He noted AT&T’s $23 billion deal to buy EchoStar’s 3.45GHz and 600MHz spectrum licences excluded the latter’s AWS-4 spectrum which is coveted by SpaceX.

FCC chair Brendan Carr appeared to take up SpaceX’s spectrum cause in May, when he met with EchoStar co-founder and chair Charlie Ergen and President Donald Trump to discuss spectrum rights.

Piecyk stated Carr played a “critical role in helping to resolve the EchoStar mess”, but noted “there is much more work to be done and Carr will continue to play a lead role”.

“Regardless of who ends up with EchoStar’s remaining spectrum, there is an opportunity emerging for SpaceX to enter the mobile wireless business in the US.”

“SpaceX’s strong brand and the perception that Starlink can deliver ubiquitous coverage position Elon Musk to credibly enter the US wireless market.”

He explained with industry margins approaching 60 per cent, “the sector is an attractive target for new competition, particularly from a player with Musk’s scale and consumer reach”.

Grease
Piecyk suggested the FCC could smooth SpaceX’s mobile path by securing favourable wholesale terms for an MVNO arrangement, which would lower the barrier to entry.

“Musk could pursue such a deal directly with EchoStar, which continues to discuss launching its own LEO constellation, or deepen SpaceX’s existing partnership with T-Mobile [US], where the companies are already collaborating to extend satellite coverage to mobile subscribers.”

Either avenue could employ SpaceX’s reputation for innovation “to challenge incumbents in a market that has long been defined by high margins and limited disruption”.

“Can you imagine a Starlink phone hitting the market powered by a Grok Assistant?”

With EchoStar expected to sell more of its spectrum, the analyst speculated the administration of President Trump could take an equity stake as part of a broader resolution.

“Such an outcome could also further strengthen Commissioner Carr’s standing with Trump by demonstrating his ability to deliver another strategic minority stake into the US coffers.”

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Under the auspices of Dish Network, the concept of becoming the fourth network operator was borne out of T-Mobile US’ deal to buy Sprint in 2019. Dish Network agreed to pay $5 billion to acquire assets from both of those operators as part of a plan which was supposed to provide additional competition in the market.

After several delays, Dish Wireless launched its greenfield, open RAN network in Las Vegas in 2022.

The struggle bus had many stops as the company under the EchoStar brand faced a mounting debt load while also failing to find its footing in the MNO sector.

Matters came to a head in May when the Federal Communications Commission (FCC) called out EchoStar’s 5G network buildout and its AWS-4 spectrum licences after SpaceX questioned the latter’s use.

FCC chair Brendan Carr presented EchoStar co-founder and chair Charlie Ergen with his “best and final offer” following a meeting by both with President Donald Trump in June. Trump encouraged the two sides to reach a deal to help EchoStar avoid bankruptcy.

EchoStar stated in a filing the uncertainty over its spectrum rights effectively froze its ability to make decisions about its Boost Mobile phone business, including the build out of its 5G network.

EchoStar stated its spectrum deal with AT&T will result in it decommissioning elements of its open RAN network over time as it moves forward as a hybrid MNO using the latter’s network.

The deal with AT&T is expected to close in mid-2026. Roger Entner, founder and analyst at Recon Analytics, told Mobile World Live (MWL) it will likely gain regulatory approval after both Carr and Ergen met with Trump at the White House.

“This is de facto the end of the road as the fourth network operator,” he said.

Here’s a look at how the deal impacts EchoStar and AT&T.

Vendor fallout
Entner explained the decision to shutter the open RAN network impacts the vendors which were supporting the 5G service and buildout. Samsung struck a deal three years ago to provide radios and other gear for use on the 5G network.

“It probably effects Samsung the most,” Entner noted.

AvidThink founder and principal Roy Chua told MWL the decision to shut down the open RAN network made sense to ensure EchoStar can remain viable going forward.

“It’s unfortunate for the innovative technology platform they built with their partners and the overall open RAN movement,” he said. “It’s a negative for the vendors involved in powering the Boost RAN network, including Samsung, Mavenir and a host of other players.

“Unfortunate as well for Wind River, which just took over from Broadcom/VMware the OS/CaaS layer at the edge.”

He noted Amazon Web Services will most likely continue to host the Boost Mobile 5G core.

Government contracts
The future of EchoStar’s Open RAN Centre for Integration and Deployment (ORCID) faculty to test and validate components from various vendors on its 5G cloud-native network seems uncertain as does a $50 million grant from the US Department of Commerce’s National Telecommunications and Information Administration (NTIA) to help establish the centre.

Tower companies
LightShed analyst Walter Piecyk noted EchoStar’s net debt was $22 billion before it struck the deal with AT&T.

“Dish paid $13.5 billion for the spectrum now getting sold for $23 billion. There are likely other elements to this deal and tower counts look to decline not increase,” he said on X.

Indeed, MoffettNathanson senior MD Craig Moffett explained EchoStar is still saddled with roughly $15 billion in debt related to its tower lease agreements.

He noted the deal with AT&T provides a near-to-medium cushion for EchoStar to pay its tower leases.

Moffett said it also bodes well “for the thesis that EchoStar is now in full liquidation mode”.

“More spectrum sales will surely follow,” he stated. “The likelihood of EchoStar remaining a facilities-based carrier are dwindling.”

Satellite play
In the face of a possible bankruptcy filing, EchoStar announced earlier this month it reached an agreement with MDA Space to build low Earth orbit (LEO) birds for a new non-terrestrial network (NTN) for its direct-to-device (D2D) satellite constellation.

EchoStar stated the delivery of satellites is planned for 2028 with a commercial service starting the following year. It estimates the total cost of the LEO constellation is comprised of a one-time investment of $5 billion.

Tim Farrar, an analyst at TMF Associates, explained to MWL EchoStar could use some of the money from the AT&T deal to build its satellite constellation.

Farrar stated in a research note it is doubtful Ergen views D2D as a major opportunity and instead is more focused on building a network to fend off the spectrum challenge from SpaceX’s Starlink and preserve exclusivity in the AWS-4 spectrum within the US.

“As such, we remain doubtful that EchoStar will ultimately invest the full $5 billion required for 200 satellites, and instead near term contract commitments, such as for launch, will focus on the initial 100 satellite constellation and an investment of $2 billion to $2.5 billion.”

Entner also doesn’t see EchoStar making a D2D play.

“With AST SpaceMobile, Kuiper and Starlink, how many competing satellite systems do we need? Charlie Ergen investing more money in satellite-based communications is throwing good money after bad money.”

AT&T
AT&T stated the addition of EchoStar’s spectrum will enable it to offer its fixed wireless access (FWA) service in more areas where it currently does not have fibre.

Compared to rivals Verizon and T-Mobile, AT&T’s FWA rollout has been slower to date, but it could be more aggressive with the new spectrum in hand.  

Entner stated combining FWA with AT&T prepaid brand Cricket Wireless will “go at the jugular” vein of cable operators.

He said the spectrum deal also allows AT&T “to play offence in a lot more places and a lot more markets” while also transforming “a good enough network into a real contender”.

Moffett views the spectrum deal as “incremental negative” and noted the additional debt AT&T will incur “yields little to no incremental revenue”.

He also stated AT&T’s decision to continue its share repurchase programme instead of prioritising debt reduction related to the deal “doesn’t leave much margin for error”.

The post Analysis: EchoStar network dream crashes and burns appeared first on Mobile World Live.

AT&T will gain 50MHz of spectrum in the arrangement, which is subject to regulatory approval, assets it noted cover almost every market in the US.

In a statement, EchoStar explained its mobile unit would continue to compete in the US wireless market using its cloud-native 5G core and AT&T’s cell sites, having signed an amended service agreement with the operator.

Boost Mobile customers will initially retain access to T-Mobile US’ network to ensure there are no service issues.

Elements of Boost Mobile’s RAN are set to be decommissioned over time as a result of the deal.

Probes
Earlier this year the Federal Communications Commission (FCC) began probes into Boost Mobile’s network build, which started under the guise of Dish Wireless, and spectrum usage.

EchoStar explained the AT&T deal is part “ongoing efforts to resolve” the FCC’s inquiries, noting the sale would enable “rapid deployment of the purchased spectrum to US consumers across the country, as AT&T has the option to lease the spectrum, pending the closing of the spectrum sale”.

Co-founder and chair of the company Charlie Ergen said he is “enormously proud of the EchoStar team for deploying the world’s first open RAN network in record time, despite industry scepticism and in the face of the many challenges raised by the Covid-19 pandemic”.

“EchoStar and Boost Mobile have met all of the FCC’s network buildout milestones. However, this spectrum sale to AT&T and hybrid MNO agreement are critical steps toward resolving the FCC’s spectrum utilisation concerns.”

The satellite company plans to spend the proceeds on “retiring certain debt obligations”, and funding its continued operations and “growth initiatives”.

CEO Hamid Akhavan noted it would “continue to evaluate strategic opportunities for our remaining spectrum portfolio in partnership with the US government and wireless industry participants”.

The post AT&T acquires EchoStar spectrum assets for $23B appeared first on Mobile World Live.

Bloomberg reported the company hired Akin Gump Strauss Hauer & Feld following a decision at the end of May to skip a cash interest payment on its 10.75 per cent senior spectrum notes due in 2029.

EchoStar noted in the filing it has a 30-day grace period to make the interest payment “before such non-payment constitutes an Event of Default”.

FCC chair Brendan Carr wrote to EchoStar on 9 May.

As part of a public notice, the FCC is determining whether EchoStar plans to use its mobile satellite services (MSS) operations in the 2GHz band after SpaceX questioned it.

In a separate public notice, the FCC is also looking into EchoStar’s compliance with its 5G build milestones.

The regulator’s actions have “effectively frozen EchoStar’s decision making, it cannot reasonably invest more capital into a buildout if the Commission indicates it may take away its licences through unprecedented actions,” the company wrote in an FCC filing.

EchoStar billionaire Charlie Ergen repeatedly made attempts to schedule a meeting with Carr dating to 2024 before he became chair earlier this year, the company stated in a filing on 6 June.

In a letter to Carr dated 12 May, Ergen stated he “tried on several occasions to meet with you to update you on our significant progress, including new momentum with acquiring customers and upgrading our network”.

Bloomberg previously reported EchoStar has debt maturities of approximately $7 billion.

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In a filing today (30 May) with the US Securities and Exchange Commission, Charlie Ergen-controlled EchoStar stated it won’t make the cash interest payment on its 10.75 per cent senior spectrum notes due 2029.

EchoStar noted in the filing it has a 30-day grace period to make the interest payment “before such non-payment constitutes an Event of Default”.

FCC chair Brendan Carr sent a letter to EchoStar on 9 May. As part of a public notice, the FCC is determining whether EchoStar plans to utilise its mobile satellite services (MSS) operations in the 2GHz band after SpaceX questioned its use.

In a separate public notice, the FCC is also looking into EchoStar’s compliance with its 5G buildout milestones.

“This uncertainty over our spectrum rights has effectively frozen our ability to make decisions regarding our Boost business, including continued network buildout and adversely impacts our ability to implement and adjust our overall business plan and requires us to re-evaluate the deployment of our resources,” EchoStar explained in today’s filing.

EchoStar also stated it is confident the company has met and fully demonstrated “all applicable 5G buildout milestones”.

In a 90-page filing on 27 May with the FCC, EchoStar stated the agency’s “actions have created a dark cloud of uncertainty” over its spectrum rights and open RAN 5G network.

“This cloud has effectively frozen EchoStar’s decision making—it cannot reasonably invest more capital into a buildout if the Commission indicates it may take away its licences through unprecedented actions,” according to the FCC filing.

Bloomberg reported EchoStar has debt maturities of approximately $7 billion through 2026.

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The company combines its prepaid and post-paid subscribers under the Boost Mobile brand and saw its mobile customer churn improve by 7.2 per cent.

It now has approximately 7.2 million wireless subscribers, down from 7.3 million.

EchoStar president and CEO Hamid Akhavan attributed the wireless subscriber gains to the company’s consistent marketing efforts and larger contributions from sales on its digital channels.

“We expanded the benefits of our prepaid and post-paid offerings to both our branded stores and digital sales channels,” he said on the earnings call. “We also increased our marketing spend and offers during the important tax return window, which seasonally increases demand for new devices and upgrades.”

“These activities helped anchor our first quarter subscriber growth and positioned us well for additional opportunities in 2025.”

Total wireless revenue increased 6.4 per cent to $973. million, driven by 3.3 per cent ARPU growth and higher handset sales.

OIBDA for the wireless segment came in at a loss of $415 million, a 14.2 per cent increase

EchoStar’s revenue of $3.8 billion was down 3.6 per cent and its net loss grew from $107.3 million to $202.6 million.

Network update
John Swieringa, president of technology and COO, said on the call the company met a Federal Communications Commission requirement to deploy 3GPP Release 17 across its network by 14 June.

He said Release 17 is a key enabler for 5G-Advanced.

“Also, we now have more than 24,000 5G sites on air, more than one month prior to our commitment date.”

Akhavan stated about 75 per cent of the company’s new subscribers are being served by its greenfield 5G network.

Dish Network launched the 5G network in 2022 and subsequently merged with EchoStar. It has MVNO agreements in place with T-Mobile US and AT&T.

“I think having the owner economics of having the customers be on our own MNO network is probably one of the biggest improvements we can make in cost and you see that trend will continue,” the CEO said.

The post EchoStar boosts wireless subscribers, profit slips appeared first on Mobile World Live.

Independent non-profit BBB National Programmes’ National Advertising Division (NAD) found while EchoStar’s Boost Mobile claims its 5G network is available across 99 per cent of the US, it is not the case.

NAD found 98 per cent of the service is enabled by Boost Mobile’s 5G network combined with MVNO agreements.

It noted Boost Mobile’s greenfield 5G network covers 80.8 per cent of the US.

NAD stated in areas where Boost Mobile subscribers switch to AT&T and Verizon’s networks through roaming agreements, it does not count as 5G coverage due to parts of them still using 4G.

NAD also found “the evidence detailing the benefits of the network built by Boost Mobile did not support the full breadth of comparative benefits” it claimed in adverts.

The arbitrator called on Boost Mobile to “discontinue the challenged claims or modify its advertising to avoid conveying unsupported messages” about its coverage “and comparative benefits”.

NAD noted nothing in its decision would preclude Boost Mobile from making other truthful and non-misleading comparative and monadic claims about service availability or the benefits of the network it built.

Dish Network launched the 5G network in 2022 and subsequently merged with EchoStar.

Quality
EchoStar and Dish Network executives have long promoted the open-RAN based 5G network as being superior to older networks from rivals including T-Mobile, AT&T and Verizon.

NAD recommends Boost Mobile no longer describe its network as “new” or “newest” even though the operator identified several features and benefits.

The arbitrator concluded Boost Mobile’s new claims exceed the US Federal Trade Commission’s guidance limiting use of the term to a period of six months and “its America’s newest claim conveys a comparative performance superiority message that the evidence did not support”.

In an advertiser statement, Boost Mobile explained it would comply with NAD’s recommendations and incorporate them into future advertising despite disagreeing with some of them.

The post Arbitrator backs T-Mobile US in Boost Mobile 5G advert spat appeared first on Mobile World Live.

AvidThink founder and principal Roy Chua told Mobile World Live (MWL) the commercial in-service handover is likely the first, but noted there have been multiple tests between different vendor radios.

“This is a handoff between two operating gNodeB nodes from different vendors on a production network,” he explained.

Interoperability between open RAN vendors is a critical element for enabling operators to use equipment from multiple companies.

Open RAN also holds the promise of reducing dependency on a single vendor and lowering costs through the multi-vendor approach.

Mavenir and Boost Mobile explained the 3GPP Xn interface eases “communication between RAN nodes from different vendors, ensuring uninterrupted call continuity and a smooth user experience”.

They noted RAN with proprietary interfaces require operators to rely on single-source networks across regional deployments.

The Xn interface enables interconnection across open and closed RAN nodes, providing “greater interoperability and vendor flexibility across the same region”.

A Boost Mobile representative told MWL the Xn interface is live across the operator’s entire network.

The commercial in-service handover included an unnamed third-party vendor.

Mavenir was named one of Dish Wireless’ first open RAN vendors in 2020.

The announcement with Boost Mobile is another recent sign of Mavenir’s progress in the open RAN sector, including a deal with AT&T.

The post Mavenir, Boost Mobile hail first open RAN handover appeared first on Mobile World Live.

FYUZ24 found a new home in the Republic of Ireland’s capital city Dublin, a move placing the event closer to the heart of a major urban centre than its original location on the outskirts of Madrid and enabling local speakers to attest to the benefits of digitalisation enabled by more ready access to connectivity.

But it was perhaps the tangible, albeit apparently quiet, progress being made by the open RAN community as a whole which gave the event more bite than the culinary-themed original in 2022 or the mastication of key challenges in 2023.

A prime example of the progress of open RAN as a whole came in a panel featuring speakers from AWS, Boost Mobile and Accenture, which addressed the nuts and bolts of a real-world deployment and the lessons learned.

Hands on
AWS was Boost Mobile-owner Dish Networks’ provider of choice when it began building its cloud-native 5G network, so Kaniz Mahdi, director technology at AWS Industries (pictured, far right), and Satish Sharma, EVP network development with Boost Mobile (pictured, second from left), offered insight into their progress and how open RAN is working out in a real-world deployment.

Mahdi explained AWS now operates 19 sites with a centralised RAN serving distributed users: “it’s working, so it is the reality, the future is now and we are now building the next chapter”.

The executive noted this is a far cry from prior TIP and other events on the subject, where “mostly you see demonstrations, experiments”, progress which is helping to define the next steps.

She identified “speed, scale and security” as challenges for which “AI and data have been very helpful” in addressing.

Mahdi conceded AWS’ work with Dish Network had not been smooth: “we did it in a rather scrappy way”, she said, noting the companies even identified some gaps in network observation capabilities on the day of the presentation.

She explained hindsight is always 20:20, stating if the companies were to commence the task today, they would focus more on the ecosystem and “ironing out the kinks” before placing anything in the cloud.

The expert noted working with standards bodies including the O-RAN Alliance is, of course, a key element, but added preparing for the next “iteration of RAN evolution” should ideally involve creating “communities like this where we are having a multi-sector discussion” and implementation, so “the cloud providers and the workloads that go on the cloud” are grouped together to enable companies to activate services with a flick of a switch without teething troubles.

“I would say the most important thing would be crowdsource innovation and bring multiple sectors together in the same community.”

Intrinsic
Sharma asserted Dish Networks’ progress in its greenfield 5G deployment was better today than it would have been using more traditional methods, branding it “one of the largest deployments” of open RAN in the world.

The network has 250 million Points of Presence, a feat only achievable because it lacks “any legacy” equipment. Sharma said the progress is “mind blowing”.

It faces several challenges in delivering on the potential of open RAN: Sharma pointed to operating costs as a primary consideration, along with efficiency in terms of how best to employ the vast volume of data generated by its open interface.

“There are multiple layers of insights”, Sharma said, explaining this feeds into network performance, but also the customer experience provided.

Of course operators are keen to work out how to generate revenue from open RAN infrastructure: “all that talk about technology and, as an operations person I can speak about operations, but unless we get the revenue”, a growing, satisfied customer base and an ability to “demonstrate different use cases to enterprises” in a large-scale way, “until that, it’s just a story”.

AI comes into play here, in terms of how the operator connects elements including the RIC, rAPPs and xAPPs “and everything else that is coming together”, to then take it to the next level and enable monetisation “in a big way”.

The next three-to-five-years will see the company focus on ecosystem development, ensuring technology and products truly become plug and play.

“For that to happen, there’s a level of work that the stakeholders’ group, the OEMs, the people who provide the product and technology really need to spend time making…mature enough” for operators to run out of the box.

Boost Mobile is keen to see a “larger ecosystem” of partners take “software to a level of maturity and resiliency that, once we put it in production, really works”.

AI
Mahdi agreed AI is pivotal to best employing network data in distributed networks which may span several nations and regions of the world.

The technology can be used to deliver a “control plane” which goes beyond the RAN by incorporating the “intelligence that is driving the network as well as the user” to provide a quality service.

One factor which could come into play is the investment cycle anticipated when 6G begins to become a reality, though Mahdi argued there is still time for open RAN to be prioritised before the next-generation technology begins to take shape.

Jefferson Wang, CSO, cloud first at Accenture (pictured, second from right) argued AI is emerging as an important element in terms of extracting maximum value from open RAN deployments, opening the door to smoothing repetitive network processes and a shift “from reactive monitoring to proactive and predictive maintenance”.

There is also a role for AI in accelerating development and deployment of xAPPs, Wang said, pointing to the potential to cut the time taken to test RIC software.

Wang said fresh challenges are coming to the fore, with edge processing of open RAN posing questions around which elements would be handled on site compared with being passed to the centralised cloud.

Security remains a key consideration for any disaggregated network play and, again Wang sees a role for AI to address questions around network segmentation and assess the “blast radius” before committing to any changes.

Wang highlighted some more concrete problems involving operating models, because the increasing number of players involved, “whether it’s third parties” or others, is resulting in “incredibly complex” structures.

Ironically, the technology advances mean the skills of staff remain as important to a successful open RAN deployment as the infrastructure itself, Wang added, explaining just hiring new people is not necessarily the best way to accrue the skills required.

Accenture views this more as a “kind of talent creation, where you’re going to actually have to take a network engineer and train them more on software versus going the other way” by trying to teach a software specialist how networks operate.

Wang believes creating a testing environment focused on interoperability “is the first big important piece that we hope to accelerate” in future, though also highlighted the compute and storage power required to fully employ AI, along with arguing the whole movement cannot be solely centred around the cost of ownership.

The panel may have highlighted plenty of current and emerging challenges remain around adoption of open RAN and broader network disaggregation moves, but the vibrancy of FYUZ24 also highlighted the progress to date and how the community itself seems to truly be finding its feet.

The post Feature: FYUZ fuses, sparks open RAN reignition appeared first on Mobile World Live.

The test at US Army base Fort Bliss in the state of Texas is aimed at exploring the advantages of near real-time control of the RAN using a RIC. It includes trialling RIC-based software applications for use across military networks.

The 5G Open RAN prototype equipment will be installed at Fort Bliss to operate a temporary network for evaluation purposes.

That network will transition to serve as part of the Hughes commercial network supporting both DoD and commercial customers in and around the Army base.

The prototype project is a joint effort between the US Army, the DoD Chief Information Officer (CIO), and the Office of the Under Secretary of Defense for Research and Engineering.

Dan Rasmussen, SVP, North American Enterprise at Hughes Network Systems, stated the Fort Bliss programme “will pave the way for further RIC exploration, enhancing network performance for both US government and commercial applications”.

Hughes is the primary contractor for the project, which includes demonstrating, qualifying, and integrating a RIC into the test network across the open RAN infrastructure. The programme will also use engineering expertise and 5G spectrum from EchoStar-owned Boost Mobile.

The primary use case is testing the ability to change spectrum at the 5G control node. Hughes noted that capability has “real world relevance to resilient communications for a mobile command post”.

The prototype programme will serve as a testing ground for developing new open RAN RIC tactical applications ahead of applying them across additional installations. It will also create a training site for both civilian and military technical staff.

In March, EchoStar won contract extensions from the DoD for open RAN-based private 5G networks across several military installations.

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CFO and EVP Paul Orban cautioned on the company’s Q1 earnings call in May that it was facing $2 billion in debt maturing on 24 November after it covered a $1 billion payment in March.

At the time, he stated the company didn’t have the cash on hand to pay off the maturing debt.

Through a series of transactions and balance sheet restructuring, EchoStar now has the funding in place to meet its commitment and to continue building its open RAN 5G network.

The transactions include around $5 billion in debt restructuring and the addition of “$5.2 billion of fresh capital” to its balance sheet for “investment in [a] nationwide open RAN 5G network and other general corporate purposes”.

It also announced, “the successful completion of various transformative strategic transactions positioning its business for the further enhancement of its nationwide open RAN 5G Network”.

“We ended the third quarter with over $2.7 billion of cash remarkable securities, including our restricted cash,” Orban said on the earnings call. “We will fund the $2 million of debt return this week from this restricted cash.”

EchoStar previously stated the sale of its Dish TV satellite business and Sling TV streaming division to DirecTV combined with $2.5 billion in new financing from investment company TPG Angelo Gordon provided the needed cash to pay down the debt maturity.

Akhavan expects the deal with DirecTV will close in late 2025, but even if it doesn’t “we now have a more robust foundation to operate and grow EchoStar’s business, independent of the exchange outcome”.

MoffettNathanson senior MD Craig Moffett previously predicted EchoStar-owned Dish Network could go bankrupt by the end of 2024.

He stated in a research note EchoStar’s Q3 results “were predictably awful,” and that there is no certainty the DirecTV deal will close. DirecTV, which is being sold to TPG, will assume about $9.7 billion of Dish’s net debt if the deal goes through

Q3 metrics
Wireless subscribers, excluding the government’s Affordable Connectivity Programme (ACP), rose by 62,000 year-over-year, totalling 6.98 million.

However, net subscribers decreased by 297,000, up from a loss of 225,000 last year primarily due to the end of ACP funding on 1 June 2024. Wireless churn rate of 3.9 per cent improved by 29 per cent.

EchoStar combined its prepaid and post-paid Boost brands under the single umbrella of Boost Mobile in July.

Retail wireless revenue of $895 million increased from $890 million while revenue from its greenfield 5G network rose to $43.2 million compared to $29.9 million.

Akhavan said more than 50 per cent of all new device sales in Q3 are being activated on the Boost Mobile network. It also reached a deal with Apple in Q3 to allow its customers to purchase and activate the Boost Mobile service through Apple retail stores, Apple’s website and its app store.

John Swieringa, president of technology and COO, stated Boost Mobile will provide 5G broadband access to more than 80 per cent of the US population by year-end

EchoStar has MVNO agreements in place with AT&T and T-Mobile, which it stated enables coverage to 99 per cent of the US population.

“Today, the Boost Mobile network covers over 250 million Americans with 5G broadband and more than 208 million Americans with 5G voice,” Swieringa said.

EchoStar will expand its 5G Voice over New Radio (VoNR) service to three additional markets over the coming weeks to bring its coverage to more than 216 million by year-end.

Revenue of $3.9 billion was down 5 per cent from a year ago. EchoStar posted a net loss of $141.8 million compared to $133.3 million.

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The long-rumoured merger between the two satellite video companies includes DirecTV acquiring the Sling TV streaming division and the Dish TV satellite business.

DirecTV will assume about $9.7 billion of Dish’s net debt in a deal that is expected to close in Q4 2025.

The two companies are proposing an exchange offer at a discounted rate for the debt to help extend the maturities.

EchoStar stated the sale of its video business combined with $2.5 billion in new financing from investment company TPG Angelo Gordon will provide the cash needed to pay off about $2 billion in debt maturity by November and “provide interim liquidity”.

MoffettNathanson senior MD Craig Moffett previously predicted EchoStar-owned Dish Network could go bankrupt by the end of 2024.

Roger Entner, founder and analyst at Recon Analytics, stated on X the arrangement pulls EchoStar’s head out of a noose while giving it a few more years of runway.

The proposed deal is projected to cut EchoStar’s total consolidated debt by $11.7 billion and decrease its refinancing needs by approximately $6.7 billion through to 2026.

Along with the DirecTV transaction, EchoStar announced it will issue $5.1 billion of new senior secured notes maturing in 2029 from existing stakeholders to build out its  Boost Mobile nationwide 5G open RAN network

“Today’s strategic actions will advance our ability to aggressively compete in the US wireless market,” stated Hamid Akhavan, president and CEO of EchoStar.

AT&T to offload DirecTV
In a separate deal, AT&T reached an agreement with TPG Capital to sell its remaining stake in DirecTV by the second half of 2025. The operator expects to generate $7.6 billion through cash payments from TPG Capital for its 70 per cent stake in DirecTV. TPG Capital currently owns the remaining 30 per cent.  

In 2021, AT&T spun off its DirecTV, AT&T TV and U-verse video services into a separate entity co-owned by TPG Capital but increased competition from streaming services such as Hulu, Netflix and Amazon’s Prime Video led to a loss of subscribers over the years.  

AT&T stated the sale allows  it “to focus on being the leading wireless 5G and fibre connectivity company in America”.

The post EchoStar to unload Dish to DirecTV for $1 appeared first on Mobile World Live.

The aggregate asset purchase price of $255 million is to be paid in four annual installments, with the first $95 million paid yesterday (4 September) when the completion was announced.

Liberty Latin America aims to fund the transaction through “local liquidity sources including cash on hand, cash generated from operations and/or revolving credit facilities”.

Balan Nair, president and CEO of Liberty Latin America, said it acquired more than 100MHz of spectrum along with the opportunity “to drive fixed-mobile convergence penetration from current levels of around 25 per cent”.

EchoStar needs to pay off $2 billion in debt maturity by 24 November, but at least one analyst predicts it will go bust.

The post Liberty LatAm wraps up deal to buy spectrum from EchoStar appeared first on Mobile World Live.

The demonstration involved remote network orchestration, wide area network (WAN) resiliency and secure RAN sharing between standalone private 5G networks operating at the US Navy Air Station at Whidbey Island in Washington and a base located in Hawaii.

Their goal was to help the US Department of Defence (DoD) evaluate 5G applications for military uses, along with LEO and GEO satellite communications resiliency.

In March, EchoStar won contract extensions from the DoD for open RAN-based private 5G networks across several military installations.

Boost Mobile provided its open RAN-based 5G networking technologies to enable standalone 5G at each location.

Hughes chipped in its intelligent network orchestration capabilities, smart network edge mission-planning technology and network management system. Combined, the companies stated their technologies can maintain communications in contested and congested environments.

Rajeev Gopal, VP of advanced programmes for the defence division at Hughes, explained the test “demonstrated a flexible and resilient mission network that dynamically switched communications paths to ensure uninterrupted situational awareness” across the bases.

Hughes stated its technology can process new service requests in less than five seconds to accommodate new threats in a wartime theatre and automatically distribute information across paths orchestrated by Hughes SNE.

The companies claimed EchoStar’s private 5G open RAN network can maintain secure connectivity for devices and applications when users travel outside of naval bases.

A device running on the Whidbey Island NAS 5G network can travel to another location and still securely access applications that reside at the first, enabling the Navy to use the access for missions requiring a user to move from one base to another.

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“We see EchoStar’s odds of success as a wireless operator to be vanishingly small,” he stated in a research note.

EchoStar president and CEO Hamid Akhavan explained on a Q2 earnings call that his company is currently in “constructive” discussions to address the financing needed to pay off $2 billion in debt maturity by 24 November.

“We’re going to have sufficient cash on hand to pay all of our bills as they become due through the day before we actually have the $2 billion due,” added EchoStar CFO and EVP Paul Orban. “We’d love to raise the money as soon as possible, but we have latitude to wait till basically the day beforehand if we have to.”

Akhavan noted the bulk of EchoStar’s wireless spectrum that it gained after a merger with Dish Network is unencumbered, meaning it could be sold off, auctioned or used as collateral to pay down the debt load.

“We have significant ability to lever our spectrum and create liquidity for many, many years to come,” Akhavan stated.

Moffett noted that while EchoStar’s spectrum holdings have enormous intrinsic value, “intrinsic value has historically been a poor indicator of auction prices.”

“We also think a liquidation would take a very long time, introducing significant time value of money considerations,” he noted.

The bottom line is Moffett foresees bankruptcy for EchoStar over the course of the next four to six months after making a similar prediction the previous quarter.

Q2 numbers
There is a slender ray of hope for the company’s wireless business following the combination of its prepaid and post-paid Boost brands under the single umbrella of Boost Mobile in July.

Wireless subscribers decreased by 16,000, compared to 188,000 a year ago, but the Boost numbers would have increased by 32,000 if not for the government’s Affordable Connectivity Programme coming to an end.

It finished the quarter with 7.2 million Boost subscribers while churn was down to 2.93 per cent compared to 4.54 per cent. Akhavan is bullish retail wireless net additions will be positive for the year.

Retail wireless revenue of $891.3 million dropped from $928.2 million while revenue from its greenfield 5G network increased to $35.5 million compared to $19.3 million.

Orban stated EchoStar invested $237 million in its 5G network deployment, down from $802 million.

Revenue fell 9 per cent to $3.952 billion from $4.356 billion a year ago. EchoStar posted a net loss of $205.6 million versus net income of $212.7 million a year earlier.

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Prior to its merger with EchoStar, Dish Network bought Boost Mobile from Sprint in 2020 as part of a deal that allowed T-Mobile to acquire Sprint. Dish Network launched a nationwide beta of its Boost Infinite in late 2022.

Both the prepaid Boost Mobile and post-paid Boost Infinite services have struggled to resonate with subscribers which led to layoffs last year.

EchoStar president and CEO Hamid Akhavan acknowledged on the company’s Q1 2024 earnings call in May its “initial approach to the market was rushed”, due to the operator focusing on launching a 5G service by building a greenfield open RAN network.

Akhavan stated the company planned to improve its Boost Infinite offerings and execution in the post-paid space in H2 of 2024.

The decision to combine prepaid and post-paid under the single brand of Boost Mobile did not sit well with Wave7 Research principal Jeff Moore, who told Mobile World Live putting both under one banner introduces more confusion for consumers.

“Boost Mobile is a wonderful brand in and of itself, and its highly appealing in urban America,” he explained. “Customers understand that they get a lot of value from Boost Mobile, but it’s not a post-paid brand. To use to the Boost Mobile brand for post-paid sales is a mistake.”

Boost Mobile positioned the new branding as a way “to deliver better value to customers through a holistic approach and strategic vision in a singular experience”.

New tariffs
Boost Mobile is also touting new 5G tariffs that start at $25 per month for unlimited data. It is also offering unlimited data plans with monthly costs of $50, $60 and $65 per line that come with various perks. The new tariffs include a “forever” price lock when customers sign up with autopay.  

The tariffs are only available online. Moore stated not offering them through the 3,500 Boost retail stores is a blow to the dealers.

“Retail stores are where a lot of urban America does its business,” he noted.

The rebranding effort includes a new logo and a programme that allows customers to try the service risk-free for 30 days. If they aren’t satisfied with coverage during that period they can get their money back from Boost Mobile.

The company had 7.3 million wireless subscribers at end-Q1. In addition to its own network, it has MVNO agreements in place with AT&T and T-Mobile, which it stated enables coverage to 99 per cent of the US population.

The post EchoStar resets Boost Mobile brand appeared first on Mobile World Live.

While open RAN purports to eliminate vendor lock-in from large companies by enabling operators to create an ecosystem of vendors, the movement has been slow to gain widespread adoption due to ongoing issues in areas such as interfaces.

EchoStar stated ORCID will help drive the open RAN ecosystem from the lab to commercial deployments through collaboration with partners such as Fujitsu, Mavenir and VMware, the same vendors used in its greenfield 5G network.

Charlie Ergen, co-founder and chairman of EchoStar, said ORCID represents “a significant milestone in both EchoStar and the US’s journey to drive and lead the adoption of open and interoperable radio access networks”.

The test facility is located in EchoStar’s data centre in Cheyenne, Wyoming.

In January EchoStar subsidiary Dish Wireless won a $50 million grant from the US Department of Commerce’s National Telecommunications and Information Administration (NTIA) to help establish the centre.

One of the NTIA’s current goals is to prove the viability of open RAN through interoperability testing and validation.

Last year, NTIA director for the Public Wireless Supply Chain Innovation Fund Amanda Toman told Mobile World Live the organisation is also developing methodologies to prove to operators open RAN has performance parity with existing RAN and potentially cost parity as well.

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Boost Mobile merged 100MHz of spectrum across four channels to accelerate data rates. Dish Network achieved peaks of 1Gb/s during trials of the set-up conducted with Samsung and Qualcomm in 2023.

It noted data rates could vary based on RF conditions, spectrum availability and the number of users in a location.

For now, the faster speed is only available on the Samsung Galaxy S24 family with additional devices to follow.

A representative for EchoStar told Mobile World Live Dish Network conducted 4CA interoperability tests on RAN equipment from Mavenir and Samsung Networks using a device running a Qualcomm Snapdragon X75 chipset.

Samsung’s device team enabled the 4CA feature across its Galaxy S24 range once Dish Network released the software on its network.

The post Dish Network claims carrier aggregation Boost appeared first on Mobile World Live.

In a research note issued yesterday (8 May) after EchoStar revealed earnings for Q1, Moffett stated a bankruptcy within the next four-to-six months was the most likely outcome for the company.

A little over four months after EchoStar and Dish Network merged to provide the latter with financial stability, it is still in dire financial straits.

EchoStar CFO and EVP Paul Orban stated on the earnings call it will be required to pay off $2 billion in debt maturing on 24 November after it covered a $1 billion payment in March with cash on hand.

“We do not currently have necessary cash on hand, or projected future cash flows, to fund fourth quarter operations or the” debt maturing in November, Orban said. “We are in discussions with funding sources at all levels in our capital structure”.

Moffett stated EchoStar would struggle to find additional sources of funding and cannot sell the bulk of its wireless spectrum before the end of 2026.

He explained while Dish Network was an active bidder against rivals T-Mobile US, AT&T and Verizon in previous spectrum auctions, it mainly drove up prices as a fourth bidder.

With its rivals spending heavily on previous spectrum auctions, Moffett stated they may not be financially positioned to buy Dish Network’s spectrum, particularly AT&T and Verizon.

“To state the obvious, none are in the position to spend aggressively on new spectrum”.

He also noted spectrum transactions take years to clear regulatory hurdles and even longer if they are part of a bankruptcy proceeding.

EchoStar president and CEO Hamid Akhavan addressed the company’s refinancing efforts during the earnings call, stating it had fielded a variety of offers while “pursuing those which can support our long-term objectives”.

Dish Network’s next Federal Communications Commission target is to cover 75 per cent of each of its spectrum licence areas with 5G by 2025, which Akhavan noted would require additional capital.

Numbers
EchoStar lost 81,000 Boost Mobile prepaid phone customers, matching its Q1 2023 performance.

Akhavan and Orban said Boost Mobile was net positive for subscriber growth for March and they expect additions to ramp in the second half of the year.

While Dish Network launched a nationwide beta of its Boost Infinite post-paid 5G service in late 2022, Akhavan stated its “initial approach to the market was rushed”, with the company focused on building a greenfield open RAN network.

“We realise we have work to do to improve our offerings and execution in a post-paid space,” which is “a key objective” for H2.

John Swieringa, president of technology and COO at EchoStar and Dish Wireless, stated five out of ten devices it activated in Q1 could connect to its 5G network alongside its MVNO partner’s set-ups, with three of five directly connected to its infrastructure.

“We are actively transitioning existing customers with network compatible devices”, along with adding new users, he said.

The company had 7.3 million wireless subscribers at end-Q1, with retail wireless revenue falling from $974.9 million to $905.8 million.

EchoStar reported a net loss attributable to shareholders of $107.4 million compared with a $253.5 million profit, with revenue down 8.5 per cent to $4 billion.

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Bloomberg reported Dish Network, which merged with EchoStar earlier this year, received at least one proposition of more than $1 billion for financing which would be tied to an unrestricted subsidiary.

The news agency describes an unrestricted subsidiary as a unit that is free to incur debt.

Roger Entner, founder and analyst at Recon Analytics, told Mobile World Live while $1 billion is a lot of money, “Dish EchoStar needs a lot more than a billion dollars to make a significant impact in the mobile market”.

A Bloomberg analyst stated EchoStar has a debt load of almost $22 billion.

Bloomberg reported one of the options under discussion for Dish Network’s debt reduction is using the company’s spectrum as collateral.

MWL previously reported EchoStar cannot sell some of Dish Network’s spectrum to Verizon, AT&T or T-Mobile US until late 2026 due to a US Department of Justice agreement relating to the operator’s involvement in the acquisition of Sprint by T-Mobile.

In January, EchoStar formed a subsidiary for some of its wireless spectrum licences as part of a plan to unlock financial and operating flexibility.

On an earnings call, EchoStar CFO and EVP Paul Orban stated financing will be required to pay off $2 billion in debt maturing on 24 November.

Orban noted the company was in active discussions with numerous parties to secure financing to meet its future obligations.

The post Dish receives financing offers from credit companies appeared first on Mobile World Live.

It stated the awards are for the continued deployment of standalone (SA) 5G networks using open RAN components at Joint Base Pearl Harbor-Hickam (JBPHH) in Hawaii and at the Naval Air Station Whidbey Island (NASWI) in Washington.

The goal of the projects is to help the DoD evaluate 5G applications for military uses cases as well as LEO and GEO satellite communications resiliency.

EchoStar stated it first won a contract from the DoD for NASWI in 2021 followed by an additional expansion in Huawei a year later.

The newest contracts run until 2025 with the promise of “additional 5G enhancements,” according to EchoStar.

EchoStar satellite subsidiary Hughes is the primary contractor for the DoD deployments, which include network elements such as radio access, edge cloud, and a packet processing core along with a “zero trust architecture”.

The multi-vendor ecosystem also includes: transport routers, switches, and firewalls from Cisco; computing infrastructure from Dell Technologies; RAN gear from JMA Wireless; edge cloud stack and Intel Xeon processors from Intel; and site survey and network installation services from Boingo Wireless.

The deployments are using EchoStar’s 5G spectrum, which it acquired through its merger with Dish Network earlier this year.

EchoStar did not reveal how much the contracts are worth. The company is struggling to stay afloat after building its own greenfield, open RAN-based commercial 5G network.

Earlier this month, auditors stated in an SEC filing there is “substantial doubt about its ability to continue as a going concern” and highlighted an expectation by the company that it will “use a substantial amount of cash in the next 12 months”.

In January, EchoStar subsidiary Dish Wireless won a $50 million contract from a separate US agency to build an open RAN test centre in Cheyenne, Wyoming.

The post EchoStar wins DoD extensions for private 5G appeared first on Mobile World Live.

Dish Network picked Allot Communications’ network intelligence and security-as-a-service products in 2021 to provide customer cybersecurity on its 5G network.

In preliminary unaudited financial statements published on 11 January, the Israel-based company revealed it received “a notice from Dish Network alleging that the software provided to it by Allot Communications failed to meet certain specifications as required in the contract”.

It said Dish Network is demanding it rectify the alleged default and “provide compliant software and related support services”.

Allot Communications argued Dish Network has levelled “allegations that are without merit”, adding the US company is behind on certain payments.

It believes it provided compliant software and related support services “in a timely manner”, meaning there is no basis for Dish Network’s action.

Allot Communications plans to “vigorously pursue its rights to obtain full payment of all amounts due in accordance with the contract”.

The company still expects 2023 revenue to be within a guidance range provided on 16 November 2023.

A representative for Dish Network told Mobile World Live it made a contractual warranty claim against Allot Communications based on performance issues with its software.

Dish Network also took “additional compensatory steps” to ensure the security of its service.

The post Allot, Dish lock horns over security service payments appeared first on Mobile World Live.

Dish Network transferred some of its unencumbered wireless spectrum licences including AWS-4, H-Block, CBRS, C-Band, 12GHz, LMDS, 24GHz, 28GHz, 37GHz, 30GHz and 47GHz, into EchoStar Wireless Holding.

The operator retained licences covering 600MHz, 700MHz, 3.45GHz and AWS-3.

Loans valued at approximately $4.7 billion will now be paid by Dish Network to EchoStar subsidiary EchoStar Intercompany Receivable.

Bloomberg reported Dish Network accumulated around $21 billion of debt, primarily related to its 5G network build.

Analysts have speculated Dish Wireless faces an uphill climb to a sustainable mobile business, due in part to the cost.

EchoStar stated it retained financial and legal advisers to assist in evaluating potential strategic alternatives, which could include selling some of its spectrum.

Hamid Akhavan, president and CEO of EchoStar, stated the asset allocation enables it “to more optimally position the necessary resources for the execution of its strategic goal of becoming the premier provider of terrestrial mobile, satellite connectivity and content services”.

Recon Analytics founder and analyst Roger Entner told Mobile World Live EchoStar cannot sell some of Dish Network’s spectrum to Verizon, AT&T or T-Mobile US until late 2026, due to a US Department of Justice agreement relating to the operator’s involvement in the acquisition of Sprint by T-Mobile.

“EchoStar needs other people’s money so they have to knock on a lot of doors and potentially sell [spectrum] or get a strategic investor,” Entner said, adding the moves could also include more funds from the debt market.

He described the debt move as “financial engineering”, enabling EchoStar to protect the majority of the company in the event of a default.

In a research note, MoffettNathanson senior MD Craig Moffett stated EchoStar’s moves may be related to a new financing situation “or perhaps a securitisation”, with the “bewilderingly complicated” announcement more about protecting its assets while it seeks additional funding.

The post EchoStar shuffles spectrum appeared first on Mobile World Live.

ORCID will allow participants to test and validate hardware including radio units, software, and distributed and centralised units against a commercial-grade open RAN network deployed by Dish Wireless.

The test facility will be located at the operator’s site in Cheyenne, Wyoming.

It will be supported by consortium partners Fujitsu, Mavenir and VMware, and technology partners Analog Devices, ARM, Cisco, Dell Technologies, Intel, JMA Wireless, Nvidia, Qualcomm and Samsung.

The US Department of Commerce’s National Telecommunications and Information Administration (NTIA) awarded the grant, the largest to date for its Public Wireless Supply Chain Innovation Fund. The pot was awarded $1.5 billion from the CHIPS and Science Act, which was passed in 2022 partly to help accelerate the adoption of open and interoperable networks in the US.

Dish Wireless’ centre taps an NTIA goal to prove the viability of open RAN through interoperability testing and validation.

ORCID will combine laboratory and field testing, and evaluation activities against Dish Wireless’ live open RAN stack.

The plan also includes ORCID participants tapping into the operator’s combination of low-, mid- and high-band spectrum to enable the field testing and evaluation. The open RAN elements will be evaluated using a mix of vendor offerings instead of products from a single supplier, in line with Dish Wireless’ multi-vendor ecosystem approach for its greenfield 5G network.

Charlie Ergen, co-founder and chairman of EchoStar, stated ORCID “will serve a critical role in strengthening the global open RAN ecosystem and building the next generation of wireless networks”.

In 2023, NTIA director for the Public Wireless Supply Chain Innovation Fund Amanda Toman told Mobile World Live the organisation is also developing methodologies to prove to operators open RAN has performance parity with existing RAN and potentially even costs as well.

The post Dish Wireless awarded $50M for open RAN test centre appeared first on Mobile World Live.