Dish DBS, the satellite pay-TV provider under Charlie Ergen's EchoStar broadcast empire, is preparing to file for Chapter 11 bankruptcy as soon as Tuesday, according to people familiar with the matter. The Englewood, Colo.-based company has faced mounting pressure from years of declining subscribers and heavy debt obligations.

The filing would mark a dramatic turn for a company that once competed directly with DirecTV and other traditional pay-TV providers. Dish DBS has struggled to retain customers as cord-cutting accelerated and streaming services captured market share. These subscriber losses have strained cash flow while debt servicing costs have remained high.

Federal regulators have intensified scrutiny over whether Dish DBS has fulfilled its obligations to deploy valuable wireless spectrum licenses. This regulatory battle has added pressure to an already precarious financial situation, potentially threatening the company's ability to meet build-out requirements.

The bankruptcy would impact EchoStar's broader portfolio, which includes Dish TV and Boost Mobile. Investors are watching closely as the company seeks to restructure while maintaining operations across its telecommunications businesses.