TLDR
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EchoStar ($SATS) stock rose 13.16% to $28.81 on June 27.
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The company is making over $500M in delayed interest payments, averting immediate default.
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Trump urged FCC Chair Carr and EchoStar to reach an agreement on wireless licenses.
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FCC is reviewing EchoStar’s compliance with 5G service rollout rules.
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EchoStar may still delay a $114M payment due July 1 amid ongoing regulatory talks.
EchoStar Corporation (NASDAQ: SATS) closed at $28.81 on June 27, surging 13.16% after the company confirmed it is making delayed interest payments.
This move helped ease market fears of default and followed reports of political intervention in its regulatory conflict with the FCC. Year-to-date, SATS has returned 25.81%, significantly outperforming the S&P 500’s 4.96% return.
FCC Review Sparks Regulatory Tensions
The Federal Communications Commission (FCC) is reviewing EchoStar’s use of spectrum licenses, particularly its compliance with 5G buildout deadlines and mobile-satellite service obligations. EchoStar had asked for an extension and warned that any change in previously approved conditions, such as the 2 GHz band sharing rules, could threaten both current operations and future wireless plans.
This scrutiny casts a shadow over EchoStar’s ability to deploy its services, and the company argues the review harms its viability as a wireless and satellite service provider.
Trump’s Quiet Push for Resolution
In a noteworthy development, EchoStar revealed that former President Donald Trump met with its chairman Charlie Ergen and contacted FCC Chair Brendan Carr. Trump reportedly encouraged both sides to find an “amicable resolution.” Though the White House declined to confirm the June 12 meeting, the company included this detail in a public filing, signaling high-level political interest in the outcome.
Chair Carr, while not directly commenting on the meeting, has stated that “the status quo needs to change,” adding urgency to negotiations.
Delayed Payments Avert Default For Now
EchoStar withheld roughly $500 million in debt payments due on May 30 and June 2, citing uncertainty from the ongoing FCC investigation. These payments are being made within their 30-day grace periods, avoiding technical default for the time being.
EchoStar Making Delayed Interest Payments, Averting Default https://t.co/UY9r2plvWf
— WSJ Business News (@WSJbusiness) June 27, 2025
However, the company disclosed it will not make a $114 million payment due July 1, tied to its 2026 and 2028 senior notes. While this payment also has a grace period, further delays remain possible as EchoStar continues to assess its strategic options.
Earnings Outlook and Financial Stability
While the exact next earnings date remains unconfirmed in the filing, investors will likely be watching closely for updates on payment timelines, regulatory decisions, and any shifts in EchoStar’s wireless ambitions. The company’s recent performance, up 62.04% over the past year, signals investor optimism, but long-term uncertainty around its spectrum assets may continue to weigh on risk assessments.
EchoStar emphasized its efforts to act in good faith during this period and stressed the importance of regulatory clarity to secure its position in the 5G and satellite markets.
