EchoStar Faces Bankruptcy Amid FCC Probe and Mounting Debt

EchoStar Corporation, a major U.S. telecommunications provider and parent of Dish Network, is reportedly facing potential bankruptcy due to escalating financial pressure and an ongoing investigation by the Federal Communications Commission (FCC).

On May 30, 2025, the company announced it would not make a $326 million interest payment on its senior spectrum-secured notes. EchoStar cited uncertainty linked to the FCC’s investigation into its 5G network rollout as the primary reason. The regulatory inquiry, led by FCC Chairman Brendan Carr, questions whether EchoStar met its licensing obligations to provide nationwide 5G service using allocated spectrum.

The investigation has reportedly hindered EchoStar’s ability to restructure its Boost Mobile business and explore strategic options. Industry analysts speculate that the bankruptcy warning may serve as a negotiating tactic in the face of regulatory and financial roadblocks.

EchoStar’s declining pay-TV businesses—namely Dish TV and Sling TV—have also contributed to its revenue drop. A proposed merger with DirecTV, intended to consolidate debts and restructure assets, fell through due to bondholder opposition and legal disputes.

Though the company has not filed for bankruptcy as of June 1, it has confirmed that all legal options remain on the table.