Satellite communications firm EchoStar announced on Monday that it expects to hold $24.1 billion in total cash after using proceeds from its spectrum license sales to repay debt. This move aims to strengthen its balance sheet and support future growth in the wireless, satellite, and technology sectors.
The announcement comes after the Federal Communications Commission (FCC) questioned EchoStar’s compliance with its network buildout extensions. In response, the company sold some of its wireless spectrum licenses to AT&T for $23 billion and to SpaceX for about $17 billion.
At the World Space Business Week in Paris, EchoStar CEO Hamid Akhavan stated that the cash proceeds from these recent transactions will total $31.2 billion, with $11.4 billion allocated to debt repayment. As of June 30, the company had $4.33 billion in cash on hand.
Last week, the FCC confirmed it would terminate its investigation into EchoStar over its slow deployment of 5G services following the deals with AT&T and SpaceX.
Akhavan also noted that a portion of the spectrum will remain with the company, including the AWS-3 band. EchoStar plans to focus on growing its Boost Mobile hybrid MVNO (mobile virtual network operator) by using AT&T’s network and integrating satellite connectivity through Starlink’s direct-to-cell service.
The transactions with AT&T and SpaceX are still subject to FCC approval. While continuing to operate its satellite TV services, Dish TV and Sling, EchoStar will shift its Hughes internet service to focus on enterprise customers.
