EchoStar could face challenges meeting its financial commitments during the next two to three years, S&P Global said Friday as it assigned the company a CCC+ credit rating following the closing of the deal creating EchoStar/Dish Network (see 2401020003). EchoStar must raise substantial funds in the coming years for its capital spending, offsetting wireless losses and debt maturities, S&P said. Dish will likely need to raise about $1.5 billion this year to address $2 billion in debt that matures in November, and another $2.5 billion in 2025 "before a massive maturity wall approaches in 2026." While Dish needs success in its 5G wireless business to lower its cost of capital and service its debt, that success "is highly uncertain," it said. S&P predicted that Dish's 5G ambitions in the postpaid market will struggle as it tries to capture business in a mature wireless market with large, established competitors. It added that cable is already competing in the more price-sensitive segment of the wireless market through bundles of mobile and broadband service. Hurting Dish is a lack of meaningful contracts with large enterprise clients and a strategic partner that could help drive revenue growth. S&P said 5G private network adoption is progressing slowly, and the addressable market will be much smaller in 2025 than Dish management projected.

The EchoStar/Dish Network transaction consummated over the weekend, (see 2401020003) "buys Dish some time… but not much," MoffettNathanson wrote Thursday. A Dish bankruptcy remains likely as its direct broadcast satellite, streaming video and Boost wireless mobile virtual network operator businesses are losing subscribers and the latter two are losing money, it noted. Dish's 5G network plans would make it the fourth entrant in a mature market where carriers don't always earn their cost of capital, it said. While Dish has "immensely valuable" spectrum assets, the potential buyers all have balance sheet issues and there are prohibitions on spectrum sales to any of the major wireless carriers before 2027, it said. "And even then, it isn’t entirely clear that the FCC and DOJ would conclude that spectrum sales to any of those three buyers are in the public interest," it added.

FCC Commissioner Brendan Carr hired former senior counsel to the chief of the FCC’s Wireless Telecommunications Bureau Arpan Sura as his legal adviser. “Arpan is a true lawyer’s lawyer as well as an experienced advisor on a range of policy issues,” Carr said in a news release Thursday. In addition, he noted Sura's experience in “wireless, satellite, consumer protection, media, technology, and litigation issues,” Carr said. Before joining the FCC, Sura represented telecommunications and tech clients for Hogan Lovells. Sura has degrees from the University of Texas at Austin and William & Mary Law School, the release said.

FCC Chairwoman Jessica Rosenworcel touted the agency's 2023 achievements in a Friday note, saying the commission will "be remembered for ... the policies we advanced to reflect a world where high-speed connectivity is no longer a luxury but a necessity." Rosenworcel noted nearly 7 million households enrolled in the affordable connectivity program this year, bringing the total of enrolled households to more than 22 million. "But our progress here cannot slow down," she wrote, and "we need help from Congress to keep this groundbreaking program going." In her year-end review, Rosenworcel also cited the commission's work on broadband mapping, closing the homework gap and space innovation. "I am especially excited about our proposal to harness the power of satellites to enhance mobile phone operations in areas where there is no terrestrial mobile service," she said: "This connectivity can help facilitate life-saving rescues in remote locations and the innovative opportunities it presents will only grow." The FCC's initiatives on AI also "illustrate how the commission may be using some new tactics," Rosenworcel said, "but we remain focused on long-standing priorities like consumer protection and maximizing the opportunities we have with scarce spectrum resources."