EchoStar Corp (NASDAQ: SATS) surged 52% in after-hours trading following a Bloomberg report that President Donald Trump urged a resolution over the company’s wireless spectrum licenses. Trump reportedly met with EchoStar Chairman Charlie Ergen and phoned FCC Commissioner Brendan Carr, who later joined the White House meeting.
EchoStar is facing pressure from the Federal Communications Commission, which is reviewing the company’s compliance with its 5G buildout obligations. In May, the FCC questioned EchoStar’s extension request and mobile-satellite service operations, raising the possibility of revoking its licenses. EchoStar argues such actions would harm its wireless rollout and jeopardize satellite-based video and broadband services that millions rely on.
The company also claims that revoking previously granted spectrum rights—licenses it says cost billions in payments and investments—would break with long-standing regulatory precedent. EchoStar disclosed it had missed about $500 million in interest payments, attributing the lapse to the uncertainty surrounding the FCC probe.
DirecTV, which had agreed to acquire EchoStar’s satellite TV business last year, terminated the deal after a failed debt-exchange proposal. The unit includes Dish TV, a key rival in the U.S. satellite space.
Neither the FCC nor EchoStar provided comment to Reuters on Friday, while the White House also declined to issue a statement.
The outcome of the ongoing discussions could significantly impact EchoStar’s viability as a U.S. wireless provider and reshape the competitive landscape for mobile and satellite communications. With Trump’s direct involvement and the FCC’s scrutiny intensifying, the future of EchoStar’s multibillion-dollar spectrum assets remains uncertain—while markets respond with high volatility.