Investing.com -- Echostar surged in afterhours trading Friday after the Federal Communications Commission granted the company's 5G network buildout framework for its Boost Mobile Network, heating up competition in the wireless market.
EchoStar Corporation (NASDAQ:SATS) was up more than 4% in afterhours trading on Friday.
Following the green light from FCC, Echostar said its Boost Mobile Network would aim to cover 80% of the U.S. population by the end of year, compared with its 2023 obligation to cover 70% of the population.
As part of the FCC's framework, Echostar is required to offer a low-cost wireless plan and 5G device nationwide, even in areas where it relies on roaming partners for service coverage.
Echostar's wholesale partnerships with AT&T (NYSE:T) and T-Mobile (NASDAQ:TMUS) would allow consumers to sign up for Boost Mobile service even in areas where it hasn't yet deployed its own network.
Small wireless carriers and Tribal nations would also be able to lease EchoStar spectrum licenses in extension areas where the company has not yet deployed, the company said.