Reports from the US say that Charlie Ergen-backed EchoStar is being investigated by the Federal Communications Commission (FCC) over alleged compliance issues over federal requirements linked to EchoStar’s building of a nationwide 5G network.
The news hurt EchoStar’s share price which crashed 17 per cent (by $4.01) and in the words of lawyers from the law firm of Frank R Cruz in Los Angeles, “thereby injuring investors”. The law firm is looking to commence a Class Action on behalf of investors.
EchoStar, in a statement, insists it is in full compliance with the FCC’s requirements. EchoStar maintains that it has met all regulatory requirements, and that its 5G network covers more than 268 million people in this country.
EchoStar operates both the Boost Mobile budget telecom brand, and the Dish Network satellite pay-TV service and streaming service.
The WSJ reported on May 12th that the FCC notified company co-founder and chairman Charlie Ergen that it would investigate the company for compliance in building out a 5G network.
The FCC said: “The FCC structured the [5G] build-out 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.”
The full FCC statement said: “The 2 GHz bands are allocated on a co-primary basis for fixed, mobile, and mobile satellite services. In 2001, the Commission authorized eight satellite operators to provide MSS in the 2 GHz bands available in the US. Due to failures to meet milestones or licensees surrendering authorizations, by 2005 there were only two geostationary satellite orbit operators. In 2012, EchoStar acquired these two operators’ market access grants to provide MSS through its subsidiaries using the 2 GHz bands. For the same frequencies, in 2011-2012 the Commission adopted allocation and service rules for the Advanced Wireless Service (AWS-4) bands and thereafter authorized AWS-4 terrestrial operating authority. The current and sole licensee in these bands for both MSS and AWS-4 is EchoStar. To assist the Commission with building a record on the nature of the use of the 2 GHz band for MSS operations, we seek comment on the current status of EchoStar’s MSS operations in the 2 GHz band. In particular, we seek information on whether EchoStar is utilizing the 2 GHz band for MSS consistent with the terms of its authorizations and the Commission’s rules and policies governing the expectation of robust MSS. We also seek comment on steps the Commission might take to make more intensive use of the 2 GHz band, including but not limited to allowing new MSS entrants in the band.”
Advanced Television