FCC threat to revoke EchoStar spectrum licenses draws widespread backlash
FCC threatens "legal stability" of wireless market, Free State Foundation says.
The Federal Communications Commission is facing widespread criticism after threatening to revoke EchoStar licenses for spectrum bands that rival firms, including SpaceX, want to take over. Opposition to license revocations came from conservatives, telecom consumer advocates, and some industry groups.
The Free State Foundation, a free-market group that has generally supported Republican priorities at the FCC, filed comments saying that "arbitrary" decisions would create instability in the market for wireless broadband deployment. EchoStar is now facing regulatory uncertainty less than a year after obtaining deadline extensions for its wireless network buildout, the Free State Foundation said:
There is widespread agreement that constructing and operating wireless broadband networks depends on significant private market investment. Legal stability is a necessary ingredient for the operation of any marketplace conducive to competition and growth, including today's dynamic wireless market. Before risking their money in commercial ventures, private investors reasonably seek assurance that their interests and rights will be protected from changes in the rules or agency actions that are arbitrary or unforeseen... Rescission of deadline extension orders granted months earlier undoubtedly creates a type of regulatory uncertainty.
As previously reported, FCC Chairman Brendan Carr directed agency staff to investigate EchoStar's compliance with obligations to provide nationwide 5G service under the terms of its spectrum licenses. EchoStar bought Dish Network in December 2023 and offers wireless service under the Boost Mobile brand.
