FCC extends Dish's 5G deployment deadlines

The US telco watchdog has granted EchoStar's request for extensions ranging from 14-24 months to be applied to various of its 5G deployment deadlines.

In return, EchoStar has pledged to accelerate its rollout in certain parts of the country, and agreed to a more widespread launch of an affordable 5G service plan.

In a filing last Tuesday (PDF) EchoStar pleaded for the FCC to shift by 18 months the construction milestones pertaining to its AWS 4 (which falls in within the 2000-2020 MHz and 2180-2200 MHz bands), AWS H Block (which spans 1915-1920 MHz and 1995-2000 MHz), lower 700-MHz, and 600-MHz spectrum.

That would mean pushing back the deadline from 14 June 2025 to 14 December 2026.

EchoStar also asked that its rollout date for AWS-3 spectrum be changed from 27 October 2025 to 14 December 2026, and that its final completion deadline for its entire network be delayed from 14 December 2026 to 14 June 2028.

The FCC didn't hang about. By Friday it had agreed to all of EchoStar's requests, which certainly underscores its commitment to facilitating a fourth nationwide player to challenge AT&T, Verizon and T-Mobile.

"The updated framework enables EchoStar to optimise and enhance its coast-to-coast buildout of the world's first cloud-native Open RAN 5G Boost Mobile Network, while more efficiently deploying the network in new areas of the country," said EchoStar. "The pricing and innovation improvements from EchoStar's continued presence in the wireless market is a win for all American consumers."

In return, EchoStar has committed to covering 80% of the US population by the end of this year, up from the 70% threshold it met in June last year. It will also bring forward its final build-out milestones in more than 500 licence areas.

EchoStar has also agreed to launch an affordable 5G service plan nationwide, extending eligibility to MVNO customers as well as on-net Boost Mobile customers.

The deal with the FCC could give EchoStar a vital bit of breathing space.

As of the end of the second quarter, it still had not finalised a new financing package that will enable it to pay off $2 billion worth of debt due in November. CEO Hamid Akhavan merely stated that his company is in "constructive discussions to address necessary financing."

That won't do much to alleviate investor concerns about EchoStar's continued solvency.

Fresh speculation about a potential tie-up with DirecTV might offer some crumbs of comfort, but there have been so many rumours over the years, investors unlikely to believe it until they see it.

But if it can keep the wolves from the door in November, this deal with the FCC will enable it to spread the cost of its network over a longer time frame, and might just help it keep the lights on.

"EchoStar is proud of all it has already achieved in deploying a next generation cloud-native Open RAN network that supports 21st century innovations, including artificial intelligence and the many more advancements yet to come," EchoStar said. "EchoStar appreciates the opportunities afforded by the FCC's new framework for that work to continue efficiently and effectively."