By David Shepardson WASHINGTON (Reuters) – The U.S. Federal Communications Commission will terminate its investigation into EchoStar’s 5G buildout obligations in the country, according to a letter from the agency’s chair released by the company on Tuesday. The expected move follows EchoStar’s $17 billion deal to sell wireless spectrum to billionaire Elon Musk’s SpaceX and […]
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FCC to end EchoStar probe into 5G, spectrum obligations after AT&T, SpaceX deals
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By David Shepardson
WASHINGTON (Reuters) – The U.S. Federal Communications Commission will terminate its investigation into EchoStar’s 5G buildout obligations in the country, according to a letter from the agency’s chair released by the company on Tuesday.
The expected move follows EchoStar’s $17 billion deal to sell wireless spectrum to billionaire Elon Musk’s SpaceX and two weeks after it announced a $23 billion spectrum sale to AT&T.
FCC Chair Brendan Carr wrote in a letter to EchoStar Chairman Charles Ergen on Monday that he had asked the agency staff to close the investigation and conclude that EchoStar has satisfied its buildout obligations.
Carr told EchoStar in May that the FCC was investigating the company’s compliance obligations to provide 5G service in the United States, questioning EchoStar’s buildout extension and mobile-satellite service.
Carr said in his letter that “the FCC’s buildout obligations are designed to ensure that communities in rural and urban America have a fair shot at next-generation connectivity.”
Carr said he also directed the staff to confirm EchoStar’s exclusive rights to a key spectrum block for ground and satellite use.
Carr did not immediately respond to a request for comment Tuesday.
EchoStar, co-founded by telecommunications entrepreneur Ergen, faced the probe over slow deployment of 5G services.
SpaceX had also asked the FCC to review EchoStar’s spectrum holdings, saying the telecommunications company might be “warehousing” valuable spectrum, which is not used to provide services.
The transactions with AT&T and SpaceX are still subject to FCC approval.
In June, President Donald Trump prodded Dish TV parent EchoStar and Carr to reach an amicable deal over the fate of the company’s wireless spectrum licenses.
U.S. satellite TV provider DirecTV terminated its agreement to acquire EchoStar’s satellite television business last year, which includes rival Dish TV, over a failed debt-exchange offer.
(Reporting by Jaspreet Singh in Bengaluru; Editing by Vijay Kishore and Franklin Paul)