American Tower Corporation (ATC) has reiterated its argument that EchoStar was not forced to sell off significant spectrum assets, arguing the latter has chosen to do so.

In a court filing last week, as first reported by Broadband Breakfast, American Tower argued against EchoStar's claims that pressure from the Federal Communications Commission (FCC) effectively forced the company to sell spectrum to AT&T and SpaceX.

It comes as American Tower is suing EchoStar's Dish Wireless unit for trying to get out of its long-term contract.

The two companies signed a multi-year strategic colocation agreement (SCA) back in 2021, which American Tower claims "remains in full force and effect."

However, after EchoStar confirmed plans to sell $23 billion worth of 30 MHz of nationwide 3.45 GHz mid-band spectrum to AT&T in August, Dish sent letters to American Tower, stating that it was no longer obligated to lease space on the cell towers because Dish’s parent, EchoStar Corp., had been forced to sell valuable wireless spectrum.

Around a fortnight later, Elon Musk's SpaceX struck a $17 billion deal to snap up EchoStar's AWS-4 (Advanced Wireless Spectrum) and H-block spectrum licenses.

"Strategic decision" to sell, says American Tower

This hasn't washed with American Tower. In a court filing last week, American Tower said EchoStar's decision to sell the spectrum has been a "strategic decision."

"No such 'cataclysmic or unforeseen circumstances' exist here. To the contrary, Dish’s owner, the EchoStar Corporation (“EchoStar”), made the strategic and voluntary business judgment to enter into certain transactions that Dish now claims reduce its need for leased tower space," states American Tower, as per the court documents.

In the company's preliminary statement, American Tower notes that Dish is attempting to "evade its clear contractual obligations to American Tower."

While EchoStar said the FCC compelled it to sell the spectrum, American Tower claims this isn't the case, pointing out that EchoStar stated at the time of the AT&T sale that the sale would leave it “cash rich” and enable Dish to pivot Boost Mobile’s business and make it “way more competitive."

"This transaction puts our business on a solid financial path, further facilitating EchoStar's long-term success, and enhancing our ability to innovate and compete as a hybrid network operator," added Hamid Akhavan, CEO and president, EchoStar, at the time of the sale.

Earlier this month, EchoStar executives told the FCC that it previously had no plans to sell its spectrum, and said that "severe uncertainty" had forced it to do so.

"Due to severe uncertainty as to whether EchoStar could recoup its multibillion-dollar investments following potential commission investigations and forfeitures, EchoStar had to abandon its plans to grow its facilities-based MNO operations," said EchoStar.

American Tower isn't the only tower company to file a lawsuit against EchoStar, with Crown Castle also suing EchoStar over attempts to exit leasing agreements.

Dish sent two notices last month to Crown Castle informing the tower company that the sale of spectrum means its Master Leasing Agreement (MLA) and Master Product Agreement (MPA) held with the company "constituted force majeure."

Crown Castle called EchoStar's reasons "baseless," and said that Dish has "invented an excuse to try to avoid its contractual commitments."

WLA to FCC: Clarify your position on EchoStar

The backlash for EchoStar hasn't just come from tower companies.

In a letter to the FCC earlier this week, the Wireless Infrastructure Association (WIA) said that the regulator must ensure that EchoStar doesn't "enrich itself at the expense of the numerous infrastructure companies and other partners that have made the spectrum sales possible."

The WIA, which operates as a trade association for wireless providers and companies, noted that it had no issue with EchoStar selling the spectrum assets.

But the association wants clarity from the FCC on the situation for the tower providers.

"The Commission should clarify that it gave no such performance excuse to EchoStar. Allowing such an action would harm the wireless infrastructure ecosystem, including current 5G and future 6G deployment, and also the FCC’s spectrum assignment process," said the WIA in its letter.