EchoStar chose not to make a $326 million cash interest payment last week due to the Federal Communication Commission's (FCC) review into the company's usage of 5G and satellite licenses.

In an SEC filing last week, EchoStar stated that the FCC's review has caused uncertainty over its spectrum rights.

A couple of weeks ago, FCC Chair Brendan Carr wrote to EchoStar, noting that the agency would investigate EchoStar's use of 5G spectrum as the company continues its 5G build-out across the US.

The investigation wasn't well received from EchoStar, who hit back last week prior to the company's announcement that it would not pay the interest payment.

EchoStar said that the FCC's review has already harmed its ongoing deployment and "threatens its viability as a wireless provider as well as endangers the video and broadband satellite services upon which millions of consumers rely."

"These actions have created a dark cloud of uncertainty over EchoStar’s spectrum rights and its Open Radio Access Network (Open RAN) 5G network. This cloud has effectively frozen EchoStar’s decision making—it cannot reasonably invest more capital into a buildout if the Commission indicates it may take away its licenses through unprecedented actions," said EchoStar in response to the FCC's review.

Sure enough, two days later, EchoStar outlined that it wouldn't pay the interest payment.

"This uncertainty over our spectrum rights has effectively frozen our ability to make decisions regarding our Boost business, including continued network buildout, and adversely impacts our ability to implement and adjust our overall business plan and requires us to re-evaluate the deployment of our resources," wrote the company in its filing.

"In light of this uncertainty, we have elected not to make an approximately $326 million cash interest payment due on May 30, 2025, with respect to our 10.75 percent senior spectrum secured notes due 2029."

EchoStar acquired its Boost Mobile business as part of Dish Network’s role in the T-Mobile/Sprint merger, completed in 2021.

In 2023, Dish Network merged with EchoStar, leading to Boost Mobile becoming the brand name of the company's mobile network.

EchoStar was spun out from Dish back in 2008, as Dish held onto the TV business while shedding the satellite infrastructure that beamed content into them.

The company reiterated in the filing that it has met its 5G buildout milestones. For the first quarter of this year, EchoStar announced Boost Mobile added 150,000.

The company's president of technology and COO, John Swieringa, also stated that Boost Mobile now provides 5G to more than 80 percent of the country's population, meeting the June 14 target mentioned by Carr.