The Federal Communications Commission (FCC) issued a formal order restricting EchoStar’s use of a $2.4 billion trust fund. The ruling mandates that these funds must exclusively reimburse suppliers and contractors involved in the company's 5G network buildout.
The FCC explicitly prohibited EchoStar from using the capital to repay inter-company loans. This decision blocks a strategy EchoStar previously suggested it might pursue within federal bankruptcy court.
Regulators established the trust fund as a mandatory condition for approving EchoStar's sale of wireless licenses to AT&T and SpaceX. The FCC stated the requirement ensures that the infrastructure companies responsible for building the network receive payment.
The Wireless Infrastructure Association (WIA) and the American Wireless Builders Coalition applauded the ruling. Both organizations stated the action protects infrastructure providers currently owed significant payments.