SpaceX continues to pursue access to EchoStar’s 2 GHz spectrum

SpaceX recently reiterated its efforts to persuade the Federal Communications Commission (FCC) to grant access to EchoStar’s 2 GigaHertz band. Following a meeting last week, Jameson Dempsey, SpaceX’s director of satellite policy, expressed frustration over what he sees as EchoStar’s failure to utilize the band for mobile-satellite services, depriving consumers of this service for over ten years.

In response to SpaceX’s petition, the FCC has initiated an inquiry into EchoStar’s spectrum usage efficiency. Additionally, the FCC is reviewing a decision made in 2024 to extend 5G buildout deadlines for some of EchoStar’s licenses. These inquiries have created uncertainty for EchoStar, leading to missed interest payments totaling $114 million. While EchoStar narrowly averted bankruptcy by making delayed payments within the grace period, its financial future remains tenuous.

SpaceX is advocating for the FCC to open up the 2 GigaHertz band for sharing among multiple companies. EchoStar argues that such an arrangement would render its license worthless due to potential interference issues that would be challenging to address. EchoStar currently uses the same band for terrestrial 5G services and insists that internal coordination is crucial for effective operations.

Despite not currently offering any American services in the band, EchoStar has kept two operational satellites to comply with FCC regulations. Moreover, the company has launched an additional satellite to test U.S.-based services, with further launches planned. Other satellite providers are eager to access the band, but voices supporting EchoStar, including conservative think tanks and former FCC Commissioner Nathan Simington, have sided with the company in their comments to the agency. They argue that the regulatory proceedings against EchoStar are disproportionate and cast uncertainty over the spectrum licenses of other operators.

Recently, EchoStar disclosed that President Donald Trump intervened in the dispute following a meeting between EchoStar Chairman Charlie Ergen and FCC Chairman Brendan Carr. Trump urged a resolution that would prevent EchoStar from going bankrupt. At a recent meeting, Carr assured that the FCC would take action “soon” regarding this issue, emphasizing the necessity of efficiently utilizing valuable public spectrum resources.

SpaceX, led by entrepreneur Elon Musk, has faced tension with Trump, who is disappointed by Musk’s public opposition to the Republican budget bill. Trump has even contemplated terminating Musk’s government contracts and subsidies. Despite these challenges, SpaceX continues to advocate for broader access to spectrum resources for competitive use and innovation in the satellite industry.