When the FCC allowed T-Mobile to buy Sprint for $26.5 billion, it reduced the number of major U.S. carriers to three from four. Well, that made the regulatory agency concerned since less competition could lead to higher prices for consumers, especially at this level of the wireless industry. So, a plan was hatched that would result in Dish Network purchasing Boost Mobile and becoming the nation's fourth facilities-based carrier.
After selling most of its spectrum to AT&T and SpaceX, EchoStar/Dish stopped work on a standalone 5G network
Without the spectrum it sold, Dish was forced to stop work on what would have been a standalone 5G network. Dish Wireless' Boost Mobile is now a hybrid MVNO and relies on the AT&T network in most areas, and the T-Mobile network in some other locations. There's more. When EchoStar sold most of its spectrum, it stopped making lease payments for cell towers that it leased from American Tower. The latter is one of the largest owners and operators of cell towers in the U.S. and Dish had leased some space on those towers.
Dish says that force majeure is in effect
Dish stopped making lease payments to American Tower, claiming that it had been forced to sell the aforementioned spectrum to AT&T and SpaceX. Back in October, we told you that American Tower sued Dish. This past Wednesday, American Tower (which trades on the NYSE under the ticker symbol AMT) filed an SEC Form 8-K to disclose that Dish Wireless had defaulted on Tower rental payments that were due as part of a March 2021 agreement between the two. Dish had warned American Tower last fall that it might stop making payments.
American Tower mentions the default by Dish in a form 8-K filed with the SEC. | Image credit-SEC
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American Tower had previously told Dish that the agreement between them was still in effect. While EchoStar claims that it was forced by the FCC to sell its spectrum, American Tower called the sales a "strategic and voluntary business judgement" that resulted in billions of dollars in proceeds paid to EchoStar. Dish says that force majeure should be in effect. This is a provision in contracts that allows one of the parties to back away from performing their contractual obligations because of an unforeseeable event whether it is an Act of God or an Act of Man.
Crown Castle is in a similar situation as American Tower
American Tower says that Dish Wireless' actions will not have much impact when it reports its fourth quarter 2025 and full year 2025 results on February 24th. The company will not say how much it will lose from the default by Dish.
Another tower leasing company that is involved in a similar situation with Dish is Crown Castle. The latter said earlier this month that Dish had defaulted on cell tower payments and is also suing the company. New Street Research analyst David Barden told clients in a Research Note that the value of the payments owed to American Tower by Dish Wireless is close to the $3.5 billion that Crown Castle earlier claimed was owed it by Dish.
American Tower closed out the trading week on Wall Street at $179.27, up .30% for the week. It is closer to the 52-week low of $166.88 than the $234.33 52-week high. Crown Castle also trades on the NYSE under the ticker CCI. It closed for the week at $86.81, down .24% for the week. Its shares are much closer to the $83.21 52-week low than the $115.76 52-week high. EchoStar closed Friday at $113.22, down a sharp 10.5% for the week after reporting earnings. The stock has been extremely volatile with a 52-week high of $132.25 ad a 52-week low of $14.90.
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Alan, an ardent smartphone enthusiast and a veteran writer at PhoneArena since 2009, has witnessed and chronicled the transformative years of mobile technology. Owning iconic phones from the original iPhone to the iPhone 15 Pro Max, he has seen smartphones evolve into a global phenomenon. Beyond smartphones, Alan has covered the emergence of tablets, smartwatches, and smart speakers.
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