- EchoStar shares rose 52% in after-hours trading after Trump got involved.
- FCC is checking if EchoStar is meeting its promise to build 5G service.
What happened: Trump pushes for deal as EchoStar faces FCC scrutiny
Former U.S. President Donald Trump asked EchoStar Chairman Charlie Ergen and FCC Chair Brendan Carr to make a deal about EchoStar’s spectrum licences. On Thursday, Trump met Ergen. Later, he called Carr, who then came to the White House to join the talk. News of this meeting caused EchoStar’s shares to jump 52% in after-hours trading.
Right now, the FCC is looking into whether EchoStar is doing what it promised. In May, it raised questions about the company’s request for more time to build its mobile-satellite service. EchoStar owns Dish Network. It also runs broadband and satellite TV services. The company says the FCC’s actions are making it harder to keep going. It also claims the review could cancel spectrum rights that cost billions.
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Why it’s important
This dispute is about wireless spectrum, which EchoStar needs to offer 5G and other services. The FCC wants proof that the company is using the spectrum as planned. Earlier, EchoStar said it missed $500 million in interest payments. It blamed this on not knowing what the FCC will decide.
Last year, a deal with DirecTV to buy EchoStar’s satellite TV unit failed. That deal fell apart after a debt-exchange plan broke down. Trump’s move adds pressure on the FCC. Carr, who joined the commission during Trump’s term, has often backed lighter rules for telecom firms.