Boost Mobile is cutting jobs.

EchoStar has faced some challenges recently. Following its acquisition of Dish Network at the end of 2023, Boost Mobile, an EchoStar subsidiary, was expected to take Sprint's place as the fourth major wireless carrier. T-Mobile's acquisition of Sprint in 2020 had reduced the number of major U.S. carriers to three, a move that concerned both the FCC and DOJ due to lessened competition.

The FCC, led by Chairman Brendan Carr, has pressured EchoStar, accusing them of holding onto spectrum licenses with the intention of selling them for substantial profits. This pressure prompted EchoStar to sell 50MHz of spectrum to AT&T for $23 billion. AT&T gained 20MHz of 600MHz low-band spectrum for its nationwide 5G service, called AT&T 5G, as well as 30MHz of 3.45GHz mid-band spectrum for its faster AT&T 5G+ service.

The sale of this spectrum dashed EchoStar's hopes of Boost Mobile joining Verizon, T-Mobile, and AT&T as a major U.S. carrier. Boost Mobile has also seen its subscriber base decline from 9 million when acquired by Dish Network to a current estimate of 7.4 million, a 17.8% decrease.

With the loss of its spectrum, Boost will transition to a hybrid Mobile Network Operator. Boost subscribers will primarily use AT&T's network but will also have access to T-Mobile's network. AT&T will supply the base stations, radios, radio access network (RAN) software, and spectrum frequencies. EchoStar will manage billing, the network core, and provisioning software.

EchoStar recently laid off 500 employees from its U.S. wireless network deployment and engineering groups. This wireless network was initially known as Dish Wireless before being rebranded as Boost Mobile last year. EchoStar stated that FCC pressure led to the decision to sell its spectrum to AT&T. The company still has 76 MHz of airwaves available for sale, with speculation that Verizon, T-Mobile, and SpaceX are potential buyers.

EchoStar explained that the staff reduction was necessary because "Due to Federal Communications Commission (FCC) actions, the recent announcement of EchoStar selling spectrum licenses to AT&T significantly impacts the company’s 5G wireless network deployment unit. With elements of our network to be decommissioned over time, the company will eventually not house a wireless network deployment workforce. After thorough review of our business operations moving forward, we have made the difficult decision to reduce our network deployment workforce. The majority of impacted employees were notified on Thursday, August 28."

EchoStar’s President and CEO Hamid Akhavan stated that the agreement with AT&T would enable EchoStar to pay off some debt and invest in its existing operations. The company will now operate as a hybrid mobile network operator and a direct-to-device (D2D) satellite service provider. Akhavan also noted on LinkedIn that "This is an important step toward resolving the FCC’s recent inquiries and demonstrates our commitment to continued innovation and success."

While Boost Mobile will continue to operate, it will not be a facilities-based carrier. The spectrum sale has a greater impact on the company's network operations than its retail business. An EchoStar spokesperson confirmed that the Boost Mobile brand will remain unchanged. Some believe Boost's struggles are due to a lack of promotion, despite customers being satisfied with the network's quality, which is now being dismantled.

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