SpaceX and EchoStar Push Back on Spectrum Deal Conditions
SpaceX and EchoStar are pushing back on opposition to SpaceX's purchase of EchoStar's AWS-3, AWS-4 and AWS-H block licenses, arguing in filings posted Monday (docket 25-302) that no one has explained how the transaction hurts the public interest. The companies' comments were in response to various calls for conditions on the spectrum deal (see 2512160006).
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Critics "raise narrow, speculative, and legally flawed arguments [and] are generally either looking for handouts or raise issues that are not cognizable as part of a license assignment proceeding," SpaceX said. The deal will boost mobile wireless competition in the U.S., because all mobile carriers will have access "to true mobile broadband from satellites." In addition, SpaceX said, the sale will strengthen EchoStar, which will continue to provide terrestrial service while being able to offer satellite service to mobile devices as well.
SpaceX also said arguments against its requested waiver of terrestrial buildout requirements are trying to weaken the transaction. "While broadband from satellite will transform the ways the public can connect, an incremental terrestrial service may not even be noticed."
Some EchoStar suppliers have said the spectrum deal should be predicated on first getting the company's Dish Wireless to pledge that it will fulfill its contractual obligations to tower and fiber vendors (see 2512260005).
However, EchoStar said infrastructure companies have no connection to the spectrum licenses being sold to SpaceX, and the FCC should stay out of private contractual disputes. Addressing such disagreements "will be a complex and long undertaking that the Commission is ill equipped to undertake." Also, conditions on EchoStar don't make sense, the company argued, as it won't be the licensee of the spectrum once the licenses transfer.