FCC angers small carriers by helping AT&T and Starlink buy EchoStar spectrum

KrookedRooster

Ars Praetorian
510
Subscriptor
So now that the FCC is going on record for forcing companies to put money on Escrow to pay the workers to do the work that was required of them at some nebulous time they are going to go after the same from Verizon, Comcast and Optimum for all the Federally Mandated work that they have to pay out still ... right?

Oh, wait, those were cancelled and the money was returned to them because ... checks notes ... Biden.
 
Upvote
49 (49 / 0)

gooseslapper

Smack-Fu Master, in training
66
The ability of a company to "build out" infrastructure in keeping with the licenses it obtains from the FCC has been a thing since forever. Working for system operators using FCC licenses, it's always something that we had to keep in mind. From all appearances, Echostar tried to game this system setting it up for the shenanigans that are now unfolding.
 
Upvote
8 (11 / -3)

Fatesrider

Ars Legatus Legionis
25,272
Subscriptor
Of course they did, no bigger lap doggggg than Carr. This only benefits his billionaire buddies who paid into the regime.

The U.S has never ever been so corrupt.
Er...

Not in the last century, no. But god, you should check out the scandals that were going on during the Robber Baron days. The SCALE is bigger today, since it's global, and not just national, but the US economy was so FUBAR'd between 1870 and 1929 largely because wealthy white fucks were screwing the country it makes today look like the epitome of stability.

We're just not used to this level of government corruption, but historically, it is NOT unprecedented.
 
Upvote
49 (53 / -4)
It would appear that EchoStar told its vendors it was going to stiff them now that they're officially not going forward with the network buildout. One would imagine they would have had to actually pay those bills if they wanted to keep up the appearance of being able to complete the buildout in the time period required for the spectrum licenses.

If they put the money in escrow and the bills get paid or disputes get settled, presumably EchoStar gets back what's left over.
 
Upvote
7 (9 / -2)

SirOmega

Ars Tribunus Angusticlavius
6,217
Subscriptor++
For those who haven't been following spectrum the last 10+ years, this culminates the end-game for Charlie Ergen's play in wireless.

Over the last 10+ years he has been slowly acquiring wireless licenses, trying various ways (schemes?) to obtain licenses. He bought satellite spectrum and converted it into terrestrial spectrum with the FCC's approval. Bought adjacent spectrum to make it easier to aggregate together.

He also used a bunch of shell companies during the AWS-3 spectrum sale to try and get bidder discounts for small companies and new entrants.

It all finally came crashing down when the FCC finally called BS.

And now it seems he is trying to shaft all the tower and infrastructure companies who helped him build the Dish Mobile Network, so he can keep all the proceeds from the wireless licenses sale for himself.
 
Upvote
13 (17 / -4)
The ability of a company to "build out" infrastructure in keeping with the licenses it obtains from the FCC has been a thing since forever. Working for system operators using FCC licenses, it's always something that we had to keep in mind. From all appearances, Echostar tried to game this system setting it up for the shenanigans that are now unfolding.

Game the system how? Building out slower than planned because infrastructure is a bitch?

About 30 general contractors that are working with EchoStar to deploy its 5G network urged the FCC to leave its earlier decision in place. “Together, we have helped [EchoStar] deploy more than 24,000 cell sites and counting, covering more than 80 percent of the US population (268 million Americans)… EchoStar’s deployment has created many jobs in local communities across the countries—both at our companies and those in the broader wireless infrastructure ecosystem,” the filing said.

https://meincmagazine.com/tech-policy...-spectrum-licenses-draws-widespread-backlash/

I don’t know how true the claim of 80% is but it sounds to me like they were doing something.
 
Upvote
-2 (2 / -4)

blitzertidus

Smack-Fu Master, in training
97
Subscriptor++
Stuff like this always gives me pause because of the impact to cable networks. Many providers use the DOCSIS spectrum up to 1.8 Ghz and this means there's additional maintenance requirements to keep this clean and tight.

Glad a lot of companies are going fiber nowadays. Less impact to cable networks, customers, and smaller ISP's that have tighter maintenance teams/requirements.

I'm sure ATT & SpaceX totally really absolutely needed this spectrum. Totally.
 
Upvote
-6 (0 / -6)
Reading anything Carr has written or said, or God forbid, watching video of him talking, has honestly started to trigger the gag reflex with me. While others in this Administration are more evil, venal, and corrupt, it's hard to think of someone more contemptible, more risible than this smug, bootlicking factotum.
 
Upvote
13 (13 / 0)

real mikeb_60

Ars Tribunus Angusticlavius
13,092
Subscriptor
Reading anything Carr has written or said, or God forbid, watching video of him talking, has honestly started to trigger the gag reflex with me. While others in this Administration are more evil, venal, and corrupt, it's hard to think of someone more contemptible, more risible than this smug, bootlicking factotum.
Appropriate successor (once removed) to Ajit Pai, then. At least the Huge Cup is no longer in evidence...
 
Upvote
1 (1 / 0)

glutto

Ars Scholae Palatinae
757
Subscriptor++
Reading anything Carr has written or said, or God forbid, watching video of him talking, has honestly started to trigger the gag reflex with me. While others in this Administration are more evil, venal, and corrupt, it's hard to think of someone more contemptible, more risible than this smug, bootlicking factotum.

I have this reaction to anyone who starts talking with "Thanks to the leadership of President Trump".
 
Upvote
12 (12 / 0)
The ability of a company to "build out" infrastructure in keeping with the licenses it obtains from the FCC has been a thing since forever. Working for system operators using FCC licenses, it's always something that we had to keep in mind. From all appearances, Echostar tried to game this system setting it up for the shenanigans that are now unfolding.
Echostar behaved no worse than previous spectrum auction winners, at least in the PCS and AWS days, when extension after extension was granted and licensees were allowed to build just enough sites to arguably meet build out requirements while not actually using them for anything.

I am not saying that it was OK at the time, but absent some prior indication that the FCC was changing its stance and actually applying the rules equally this action stinks to high heaven especially since Echostar already had an approved extension. Selective enforcement looks pretty damn corrupt.
 
Upvote
4 (4 / 0)

Nahor

Smack-Fu Master, in training
65
Subscriptor++
America is leading the world again in next-gen technology

Indeed it's leading... in the race to the bottom

stronger competition

Competition to see who pays Trump the most and the fastest

innovative new offerings

Truth again, offerings of gold to the Trump god... so, well, maybe not the innovative part.
 
Upvote
4 (4 / 0)
“Thanks to President Fentanyl, America is leading the world in legalizing dangerous addictive drugs,” Carr said in his official statement. “As a result of President Fentanyl’s work, American children are now going to be able to purchase nicotine vape inhalers in the fruity flavors kids crave – providing a direct pathway to more lethal drug dependencies when these kids grow up.”
 
Upvote
5 (5 / 0)
Was this some of the spectrum T-Mobile gave to Dish Network in order for T-Mobile to buy Sprint, so EchoStar could become the “fourth cellular carrier” to replace Sprint?

Which administration allowed that catastrophe to happen? Oh, it was Trump.
Interesting, all the upvotes, except Dish was never given any FREE spectrum from T-Mobile. But rather under a 2019 Department of Justice (Do) agreement, T-Mobile was required to divest this spectrum (approximately 13.5 MHz) to Dish to ensure a fourth national wireless competitor. As part of the 2020 merger approval between T-Mobile and Sprint, Dish agreed to purchase Sprint's 800 MHz spectrum assets from T-Mobile for roughly $3.59 billion, not for free. However, when it came time to BUY the spectrum, Dish was running out of funds due to the huge amount of money spent on building out the network and due to lack of free cash flow from Dish (revenues started to diminish substantially). In 2023, Dish paid $100 million to T-Mobile to extend the deadline for this $3.59 billion purchase to April 1, 2024. Ultimately Dish could not BUY the spectrum and T-Mobile will not be able to keep it.
 
Upvote
2 (2 / 0)
It would appear that EchoStar told its vendors it was going to stiff them now that they're officially not going forward with the network buildout. One would imagine they would have had to actually pay those bills if they wanted to keep up the appearance of being able to complete the buildout in the time period required for the spectrum licenses.

If they put the money in escrow and the bills get paid or disputes get settled, presumably EchoStar gets back what's left over.
Don’t feel sorry for the tower companies as they have not directly lost any money other than their stock prices declined for a short time. The issue is that Dish (EchoStar) signed lease agreements for the use of 25,000 towers AND now the tower companies are suing for LOSE OF FUTURE REVENUES. Generally speaking this is valid but EchoStar is going through the legal challenges to probably strike a substantially reduced payout due to the forced selling of the spectrum (their argument). EchoStar is actively decommissioning all of their towers and transitioning to using AT&T facilities.

If some of the tower construction specialists have been shafted by EchoStar then that is a separate problem.
 
Upvote
1 (1 / 0)
Echostar behaved no worse than previous spectrum auction winners, at least in the PCS and AWS days, when extension after extension was granted and licensees were allowed to build just enough sites to arguably meet build out requirements while not actually using them for anything.

I am not saying that it was OK at the time, but absent some prior indication that the FCC was changing its stance and actually applying the rules equally this action stinks to high heaven especially since Echostar already had an approved extension. Selective enforcement looks pretty damn corrupt.
But Elon wanted that spectrum and Elon gets what he wants. AT&T benefited because they had a good working relationship with Dish (EchoStar) that translated into a good opportunity for them. Dish hated T-Mobile due to some big fights that the two companies had that caused Dish to strongly align with AT&T. Now Dish is very strongly aligned with AT&T and seems to be getting into bed with Elon.
 
Upvote
1 (1 / 0)
Echostar behaved no worse than previous spectrum auction winners, at least in the PCS and AWS days, when extension after extension was granted and licensees were allowed to build just enough sites to arguably meet build out requirements while not actually using them for anything.

I am not saying that it was OK at the time, but absent some prior indication that the FCC was changing its stance and actually applying the rules equally this action stinks to high heaven especially since Echostar already had an approved extension. Selective enforcement looks pretty damn corrupt.
Considering that EchoStar lost that spectrum that they played bidding games with, turned out to be a rather bad move on their part!
 
Upvote
1 (1 / 0)
For those who haven't been following spectrum the last 10+ years, this culminates the end-game for Charlie Ergen's play in wireless.

Over the last 10+ years he has been slowly acquiring wireless licenses, trying various ways (schemes?) to obtain licenses. He bought satellite spectrum and converted it into terrestrial spectrum with the FCC's approval. Bought adjacent spectrum to make it easier to aggregate together.

He also used a bunch of shell companies during the AWS-3 spectrum sale to try and get bidder discounts for small companies and new entrants.

It all finally came crashing down when the FCC finally called BS.

And now it seems he is trying to shaft all the tower and infrastructure companies who helped him build the Dish Mobile Network, so he can keep all the proceeds from the wireless licenses sale for himself.
You mean when Elon pushed for something he wanted! Things were not looking great for Dish (EchoStar) for quite a few years but until Elon pulled the rug out from under them, Dish was moving as fast as they could but was constrained by lack of funds (and some technical issues).
 
Upvote
0 (1 / -1)