Tuesday, February 17, 2026

PRESS RELEASE: The FCC Should Not Allow Its Process to Be Abused to Avoid Legitimate Investment-Backed Expectations


Please see the FSF Perspectives published this morning by Free State Foundation President Randolph May regarding the FCC’s review of EchoStar’s proposed spectrum transaction. 

 
Below is the conclusion to the Perspectives:


In sum, I do not contend – and, to my knowledge, no one else contends – that assuming no other legal infirmities, the Commission ultimately should not allow EchoStar to complete assignment of the spectrum licenses at issue to AT&T Mobility and SpaceX. Those entities almost certainly will put the spectrum to productive use. But as long as the Commission's public interest authority continues to exist – if it means anything at all – it surely must mean that parties will not be allowed to use the Commission's processes to engage in shell games in a way that contravenes public policy and the public interest. Using the Commission's transaction review process as a means of escaping contractual obligations that are integral to much needed communications infrastructure build-outs cannot be consistent with the public interest. Commission precedent is clear on this point.

 

Thus, in the context of the review process involving EchoStar's licenses, it is incumbent on the Commission to exercise its authority in a way – through requiring an escrow, surety bond, guarantee, or some other means – that ensures that funds ultimately will be available to satisfy EchoStar's contractual obligations to the tower companies and other infrastructure suppliers. By no means is this important only, or perhaps even primarily, to protect those entities who may be impacted by the outcome of this particular matter. It is important because if the Commission acts in a way that defeats legitimate investment-based expectations created by contracts, as a result of the precedent established, it likely will become more difficult in the future to raise the capital necessary to fund the multi-billion-dollar broadband infrastructure build-outs that are the foundation of the "Build America Agenda."

 

Such a result certainly cannot be consistent with the public interest in securing America's economic prosperity and national security.
 
A PDF of the complete Perspectives is here.