How Airwave Research Can Help Debt Holders Navigate a Dish EchoStar Bankruptcy

With speculation that EchoStar may pursue bankruptcy protection, attention is turning to the company’s most strategic assets: its radio frequency spectrum holdings. Much of EchoStar’s debt is backed by various wireless licenses, spanning a range of bands and regulatory conditions. For creditors and bondholders, understanding the actual value and potential monetization of those licenses is essential to assess recovery prospects.

Airwave Research provides stakeholders real-time, comprehensive valuation capabilities tailored for the U.S. wireless spectrum market.

Providing Context to the Mobile Spectrum Landscape

EchoStar accounts for 12.4% of total mobile spectrum (by MHz-Pop) in the USA. This analysis utilizes the Airwave Research Platform, which can perform the calculations in seconds. It can consider all pending approved transactions and generate an MHz-pop analysis, focusing only on spectrum below 7 GHz, as this is what was requested by the spectrum filtering. Millimeter wave frequencies are excluded to ensure the results reflect what is currently essential to the industry.

Why Spectrum Valuation Matters in Bankruptcy

In traditional bankruptcy proceedings, tangible assets, such as real estate or equipment, are relatively straightforward to value. Spectrum, however, is an intangible, non-depletable, and highly technical asset class. It doesn't depreciate in a traditional sense, and its value depends heavily on:

• Propagation characteristics (frequency, power, band)

• Geographic license boundaries

• FCC regulatory conditions and impairments

• Ecosystem maturity and device compatibility

• Spectrum screens and ownership concentration

This complexity creates an informational imbalance for debt holders—one that Airwave Research helps solve.

How Airwave Research Supports Debt and Shareholders

Airwave Research provides stakeholders with a comprehensive, real-time valuation and strategic screening environment for wireless licenses. Here’s how it can be leveraged:

1. Granular Spectrum Valuation Framework

Airwave Research uses a methodology that goes beyond MHz-Pop heuristics. The platform accounts for:

• Band-specific propagation and uplink/downlink balance

• Market-based adjustments using auction data and secondary sales

• Impairments, like sharing obligations or coordination zones

The platform also has a database of both auction and secondary market transactions which can be used to generate your own comp’s or calculate cost basis of a portfolio.

The valuation framework is outlined in the Airwave Research white paper, which can be found here, and applied through the platform. Access for the platform can be accessed here.

2. Collateral Clarity for Securitized Spectrum

EchoStar has pledged spectrum as collateral across multiple tranches of debt. Airwave can visualize which licenses are tied to which debts, assess their utility and restrictions, and determine which may be most attractive to potential acquirers.

3. Spectrum Screen Analysis for Sale Scenarios

A critical question in any asset sale: Can this spectrum be sold without triggering regulatory hurdles?

Airwave’s spectrum screen module evaluates potential buyers against the FCC’s spectrum screen thresholds, flagging when enhanced review would be required. The tool can screen for:

• Geographic overlaps

• Band-specific caps

• Market concentration using HHI

This allows debt holders and legal teams to identify clean sales candidates, improving transaction viability.

4. Buyer Universe Mapping

Airwave maintains an up-to-date map of spectrum ownership by operator, band, and geography. This helps assess:

• Who are the logical buyers?

• Who lacks a footprint in these bands or markets?

• Which operators are approaching spectrum screen limits?

Knowing the likely buyers before an auction or court-approved sale enables the development of proactive deal modeling and negotiation strategies.

5. Entity-level analysis

Users can swiftly search spectrum holdings by FCC-registered entities. This allows stakeholders to precisely track EchoStar’s spectrum assets and any internal asset transfers, critical for understanding true asset values and obligations.

A Real-Time Tool for a Real-Time Crisis

In bankruptcy scenarios, time and transparency are critical. Unlike static consultant reports or dated FCC spreadsheets, Airwave Research offers:

• Live updates from ULS and a history of secondary market transactions, as well as auction databases that are used to index specific licenses or calculate cost basis.

• Visual overlays of license boundaries and impairments

• Custom valuation and spectrum screen modules

• Transaction history and trend analysis

Debt holders, trustees, and legal teams can use this data to:

• Push back against undervaluation

• Propose rational liquidation or restructuring scenarios

• Compare asset value vs. current market comparables

Conclusion

As EchoStar's debt holders brace for what could be a highly complex asset restructuring, the need for precise and clear spectrum intelligence has never been more vital. Airwave Research provides this and more, available today.