The Federal Communications Commission (FCC) clarified Friday that EchoStar’s $2.4 billion trust fund is reserved for 5G network suppliers and contractors. The agency explicitly barred the company from using these funds to repay an $8.8 billion intercompany loan.
EchoStar previously suggested the loan repayment option in a federal bankruptcy court filing. The FCC order ensures the money reaches the entities that built the network rather than paying the company itself.
This restriction was a condition of the FCC’s approval for EchoStar to sell spectrum to AT&T and SpaceX.
The Wireless Infrastructure Association and the American Wireless Builders Coalition supported the move. They stated the decision protects payments owed to infrastructure providers.