EchoStar's ongoing payment disputes with several US tower companies could cost the tower industry an estimated $9 billion.

A report commissioned by the Wireless Infrastructure Association (WIA) last week, via the Brattle Study Group, revealed that Dish's decision to default on payments to tower operators, could lead to towercos increasing tower rental fees for existing tenants by as much as 10.7 percent.

The WIA operates as a trade association for wireless providers and companies.

It stems from EchoStar's decision last year to sell $40 billion worth of spectrum to AT&T and SpaceX.

The company maintains that it was forced to sell the spectrum under pressure from the Federal Communications Commission (FCC) chairman Brendan Carr amid concerns over the pace of its 5G buildout obligations.

Because of this, EchoStar told tower companies that the company believed its long-term master lease agreements were “excused." This has led to EchoStar defaulting on tower payments to Crown Castle, American Tower, and SBA Communications. All three companies have since filed lawsuits against EchoStar.

EchoStar maintains that it owes nothing to the tower companies, citing the spectrum sale as "force majeure."

The company sold 30 MHz of nationwide 3.45 GHz mid-band spectrum and roughly 20 MHz of nationwide 600 MHz low-band spectrum to AT&T for $23bn. Just two weeks later, Elon Musk's SpaceX struck a $17bn deal to snap up EchoStar's AWS-4 (Advanced Wireless Spectrum) and H-block spectrum licenses.

Towercos counting the cost

WIA estimates that Dish's leases account for approximately 5.1 to seven percent of annual rental revenues across the industry.

Crown Castle is notably pursuing $3.5bn from EchoStar. Last month, Crown Castle revealed plans to cut 20 percent of its workforce, blaming its dispute with Dish for accelerating the cuts.

In response to the growing uncertainty, the WIA has warned that further jobs could go if this situation is not resolved soon.

In a letter to the FCC in December, the 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."

“This is a pivotal moment,” said Patrick Halley, WIA president and CEO. “The data makes clear what could happen if EchoStar’s shell game plays out – potential job cuts, higher costs for consumers, delayed wireless investments - especially in rural areas - and a risk to America’s leadership in wireless.”

The WIA warns that unpaid obligations "could be permanently shifted onto workers, vendors, and consumers."

This could lead to a slowdown in the rollout of 5G networks, delay further upgrades, and also constrain rural expansion across the US.