Municipal governments and public entities that maintain cell tower leases, rooftop agreements, fiber transport contracts, or other infrastructure arrangements with DISH Wireless L.L.C. (or its affiliates, including Boost Mobile) are advised to closely scrutinize any communications invoking force majeure to excuse payment or performance obligations. Recent federal and state court filings demonstrate that DISH’s parent, EchoStar Corporation, has shifted away from its nationwide 5G buildout commitment—stemming from the 2019 T-Mobile/Sprint divestiture—to a hybrid mobile virtual network operator (MVNO) model following the sale of spectrum licenses valued at approximately $40 billion. DISH has asserted that the Federal Communications Commission (FCC) inquiry into spectrum utilization and the subsequent divestiture constitute a force majeure event. Multiple major counterparties have rejected this position and commenced litigation, contending that the claims are contractually unsupported. Public landlords should not accept such assertions at face value.
Background on DISH’s Strategic Shift
Pursuant to U.S. Department of Justice conditions attached to T-Mobile’s 2019 acquisition of Sprint, DISH acquired spectrum to establish a fourth national facilities-based wireless carrier. After investing billions and merging with EchoStar in late 2023, DISH faced FCC scrutiny regarding buildout milestones. In August 2025, EchoStar announced the sale of substantial spectrum holdings (3.45 GHz, 600 MHz, AWS-4, and H-Block licenses) to AT&T and SpaceX for approximately $40 billion. EchoStar publicly characterized the transactions as a profitable, market-driven business decision that would render the company “cash-rich” and position Boost Mobile more competitively as an MVNO utilizing AT&T’s network. Proceeds flow to EchoStar and its non-DISH affiliates; DISH itself has acknowledged it receives none of these funds.
DISH’s Force Majeure Assertions and Resulting Litigation
Beginning in October 2025, DISH notified various landlords and service providers that the FCC investigation and network decommissioning efforts excused its lease and payment obligations. This position has been met with immediate and vigorous opposition in multiple jurisdictions. As of March 2026, DISH faced more than a dozen federal and state actions and moved for multidistrict litigation consolidation or transfer in the District of Colorado. The following is a sampling of the active litigation:
- American Tower Corporation filed suit in the U.S. District Court for the District of Colorado (Case No. 1:25-cv-3311), alleging “contrived efforts to evade its clear and undisputed contractual obligations” for cell tower facilities.
- Crown Castle filed a parallel action in the same district (Case No. 1:25-cv-03756).
- Zayo Group, a fiber and transport vendor, challenged the assertion in Colorado state court (Case No. 2025CV34300).
- On April 14, 2026, Astound Business Solutions, LLC commenced an action in the U.S. District Court for the Southern District of New York (Case No. 1:26-cv-03060), seeking approximately $1.7 million in termination and cancellation charges under a Master Service Agreement (MSA) for 84 installed and 24 in-progress telecommunications transport services. Astound alleges that DISH’s invocation of force majeure is “frivolous” and “legally meritless.”
- On or about April 21, 2026, Township of Marlboro (a New Jersey municipality) filed suit in New Jersey Superior Court alleging breach of three monopole license agreements executed with DISH in November 2022. The action was removed by DISH to the U.S. District Court for the District of New Jersey on May 15, 2026 (Case No. 3:26-cv-05601). The Township seeks contract remedies for alleged non-payment of rent commencing December 2025.
According to the Astound complaint, the Master Service Agreement’s force majeure clause is narrowly drawn, excusing performance “if, and only to the extent that,” failure results from a defined “Force Majeure Event”: (i) act of God; (ii) act of a public enemy; (iii) act of war or terrorism; (iv) natural disaster; (v) epidemic, pandemic or quarantine; or (vi) act of sabotage. The MSA is governed by New York law. Astound contends that EchoStar’s voluntary, multi-billion-dollar spectrum sale—a discretionary corporate decision generating substantial profit for its parent—falls into none of these categories. Partial payments already made by DISH further undermine the defense, as they tacitly acknowledge ongoing obligations. Astound also highlights the corporate structure: DISH, as a wholly owned subsidiary, implements EchoStar’s strategy while EchoStar retains the financial upside.
Reviewing DISH Contract Compliance
- Review Specific Contract Language: Carefully examine the precise definition of “force majeure,” notice provisions, termination/early-exit charges, governing law, and dispute resolution clauses.
- Preserve Rights: Document all communications. Continue to enforce payment obligations unless and until a court rules otherwise or a negotiated resolution is reached with counsel’s guidance.
- Monitor Pending Litigation: The Colorado, New York, and New Jersey federal actions, along with the Zayo Colorado state-court matter, may produce precedent directly relevant to public-sector agreements.
Public landlords are not required to acquiesce to DISH’s position merely because it has been asserted. The largest private real estate and infrastructure players in the wireless sector have uniformly rejected it. Municipal governments should proceed with equal diligence to protect public interests and contractual commitments.
Bradley Werner, LLC
Michael Bradley and Nancy Werner are nationally recognized and respected local government attorneys. Our firm is dedicated to representing local governments on wireless, broadband, cable, telecommunications, utilities, and right-of-way management issues. We have decades of experience representing municipalities on communications and utilities matters.