Home / EchoStar News: Spectrum Sales, MDA Space LEO Project & Q2 Earnings

EchoStar News: Spectrum Sales, MDA Space LEO Project & Q2 Earnings

By: Jasmin Espinas

Updated: September 15, 2025

Published: August 27, 2025

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EchoStar, a satellite communications and wireless infrastructure company, is pushing forward on several fronts as it continues to reposition itself in a consolidating telecom sector. In recent EchoStar news, the company expects to hold $24 billion in cash from spectrum sales.

Separately, EchoStar has selected MDA Space as the lead contractor for its planned low Earth orbit direct-to-device satellite project.

EchoStar to Hold $24 Billion in Cash After Spectrum Transactions

EchoStar expects to retain $24.1 billion in total cash following recent spectrum license sales and debt repayment, according to comments made by CEO Hamid Akhavan during the World Space Business Week event in Paris.

The satellite communications company sold spectrum assets to AT&T for $23 billion and to SpaceX for $17 billion, totaling $40 billion in announced transaction value.

However, the company stated the actual cash proceeds from these deals will amount to $31.2 billion after adjustments.

Of that total, EchoStar will use $11.4 billion to pay down existing debt.

The remaining $19.8 billion, combined with current cash on hand, is projected to bring EchoStar’s post-transaction liquidity to $24.1 billion.

The sales follow scrutiny from the U.S. Federal Communications Commission (FCC), which had questioned EchoStar’s pace in meeting deployment milestones tied to its mobile-satellite service spectrum licenses.

After the sale agreements were announced, the FCC said it would end its investigation into the company’s 5G deployment delays.

The transactions are still pending FCC approval.

EchoStar News: AT&T Buys Spectrum Licenses for $23B

On August 26, 2025, EchoStar announced it had agreed to sell its 3.45 GHz and 600 MHz spectrum licenses to AT&T for $23 billion.

The deal covers 50 MHz of nationwide mid- and low-band spectrum and is still subject to regulatory clearance. It also includes a revised network services agreement, transitioning the companies into a hybrid mobile network operator arrangement.

This move follows recent FCC inquiries into EchoStar’s spectrum holdings and represents a shift toward resolving those concerns while reallocating capital.

AT&T, in turn, gains immediate access to critical spectrum for expanding its 5G capacity.

Under the agreement, AT&T can begin leasing the spectrum before the sale formally closes, which accelerates deployment timelines.

This development, part of broader EchoStar news this quarter, impacts the company’s spectrum strategy but does not affect the operations of its other units.

Services under DISH TV, Sling, and Hughes will continue without changes. The transaction is expected to close once regulatory approvals and other conditions are finalized.

EchoStar News: MDA Space Tapped for Open RAN LEO Network Launch

EchoStar has selected MDA Space as the lead contractor for its upcoming low Earth orbit satellite project.

The $1.3 billion agreement covers the design, manufacturing, and testing of the first set of more than 100 software-defined AURORA D2D satellites.

As part of this EchoStar news, the company confirmed that MDA Space will carry out all satellite production at its manufacturing facility.

The system will also support connected vehicles and sensors through the same infrastructure.

In addition, satellite deliveries are scheduled for 2028, and commercial service is expected to launch next year. Total investment in the project is projected at $5 billion.

EchoStar Q2 Earnings Meet High Growth Expectations

In other EchoStar news, EchoStar reported $3.72 billion in total revenue for the second quarter of 2025 and $7.60 billion for the first half of the year, reflecting measurable progress across its wireless, pay TV, and broadband segments.

The wireless unit added 212,000 net subscribers and lowered churn to 2.69%, improving 24 basis points from the same period last year.

It also delivered the highest prepaid average revenue per user in the sector, with a 4.1% year-over-year increase.

In pay TV, EchoStar posted the lowest DISH TV churn rate in over ten years, excluding the pandemic.

Enterprise growth in broadband and satellite services was led by an 8% increase in order backlog, now at $1.6 billion. Most of this came from additional wins in the commercial aviation connectivity market.

Conclusion

EchoStar’s moves this quarter signal a clear financial reset.

With $24.1 billion in cash expected after the spectrum deals and debt repayment, the company is in a stronger position to manage operating costs while funding upcoming network projects.

Its current focus appears to be maintaining operational stability and allocating capital toward strategic infrastructure tied to its direct-to-device satellite plans.

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