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FCC threatens EchoStar licenses for spectrum that SpaceX wants to use
SpaceX alleged EchoStar is barely using spectrum, said it's "ripe for sharing."
Federal Communications Commission Chairman Brendan Carr has threatened to revoke EchoStar licenses for radio frequency bands coveted by rival firms including SpaceX, which alleges that EchoStar is underutilizing the spectrum.
"I have directed agency staff to begin a review of EchoStar's compliance with its federal obligations to provide 5G service throughout the United States per the terms of its federal spectrum licenses," Carr wrote in a May 9 letter to EchoStar Chairman Charles Ergen. EchoStar and its affiliates "hold a large number of FCC spectrum licenses that cover a significant amount of spectrum," the letter said.
Ergen defended his company's wireless deployment but informed investors that EchoStar "cannot predict with any degree of certainty the outcome" of the FCC proceedings. The letter from Carr and Ergen's statement is included in a Securities and Exchange Commission filing submitted by EchoStar today. EchoStar's stock price was down about 8 percent in trading today.
