The future of EchoStar Corporation and its controversial hold on valuable 5G spectrum licenses is now under serious scrutiny, as the U.S. Federal Communications Commission (FCC) intensifies its investigation into whether the company has met federally mandated requirements to develop its wireless network. The high-stakes regulatory probe, which has rattled EchoStar’s stock and brought new attention to the company’s compliance record, highlights the shifting power dynamics and fierce competition in the satellite and wireless sectors.

FCC Chairman Brendan Carr officially launched an investigation on May 12, 2025, into EchoStar’s use of key spectrum licenses, citing concerns—amplified by filings from Elon Musk’s SpaceX—that significant tranches of the 2 GHz and AWS-4 bands remain largely underused. According to the Wall Street Journal, the probe marks a critical turning point for EchoStar Chairman Charlie Ergen, whose leadership over several decades has transformed the company into a major telecom and satellite player.

EchoStar’s predecessor, Dish Network, has long held these spectrum licenses, many of which were acquired as part of the regulatory deal that cleared the T-Mobile/Sprint merger and were later rolled up into EchoStar’s operations. The company’s Boost Mobile unit was expected to leverage these frequencies to build a competitive 5G network. The FCC, however, imposed strict buildout targets as a condition of the deal—a point now at the heart of the current investigation.

The Wall Street Journal reports that SpaceX has aggressively challenged EchoStar’s claims of compliance, arguing in FCC filings that the terrestrial use of the 2 GHz spectrum “is de minimis at best” and pointing to satellite measurements of power spectral density that suggest operations are running at just 1% to 5% of expected levels. In public comments, SpaceX has called for the FCC to reclaim and reallocate the spectrum—a move that would allow more robust satellite-to-mobile services, including those SpaceX has been developing in partnership with T-Mobile.

EchoStar, for its part, has pushed back. Charlie Ergen stated that the company has “met or exceeded all [its] FCC commitments to date” and is planning to expand both its terrestrial network and pursue new direct-to-device (D2D) satellite communications services. This emerging technology would let standard smartphones connect directly to satellites—a sector that SpaceX and other rivals also seek to dominate, according to reporting from Ars Technica and TVNewsCheck.

Yet the FCC’s method for assessing compliance is itself under review. Historically, the Commission has relied on drive test results to verify terrestrial network buildout rather than the satellite-based measurements SpaceX employs. As the investigation unfolds, the agency has also initiated a formal proceeding to solicit public comment on the overall scope of EchoStar’s spectrum use and whether the company has lived up to its mobile satellite service obligations.

The regulatory development has not gone unnoticed by financial markets. According to The Motley Fool, EchoStar’s stock took a sharp dive as investors reacted to the increased uncertainty and potential for license loss. Law firm Bronstein, Gewirtz & Grossman, LLC, announced it is investigating potential damages on behalf of shareholders, focusing on the steep stock price drop that followed public revelations of the FCC’s probe, as reported by KSNT.

The outcome of this investigation carries implications far beyond EchoStar. If the FCC determines that the company has failed to deploy its spectrum adequately, these frequencies could be reassigned—potentially shifting the competitive landscape for wireless and satellite providers. As the Wall Street Journal notes, this reflects a growing willingness by regulators to revisit legacy spectrum allocations in the face of fast-moving technological change and evolving industry ambitions.

For now, EchoStar’s future—and that of the valuable spectrum it holds—hangs in the balance, as the FCC weighs technical evidence, industry lobbying, and the broader public interest in a rapidly converging market for wireless and satellite connectivity.