FCC Approves $40bn AT&T and SpaceX EchoStar Spectrum Deal Amidst Rural Carrier Backlash
The US Federal Communications Commission has finalised the $40 billion sale of EchoStar spectrum licenses to AT&T and SpaceX, a move that has drawn sharp criticism from rural wireless providers and sparked legal uncertainty for the seller.
The US Federal Communications Commission has approved the sale of spectrum licenses from EchoStar to AT&T and SpaceX for a combined total of $40 billion. The decision, announced by FCC Chairman Brendan Carr, follows intense regulatory pressure regarding the underutilisation of spectrum by EchoStar’s Dish Network subsidiary. The transaction allocates $23 billion to AT&T and $17 billion to SpaceX, marking a significant consolidation of wireless infrastructure assets in the United States.
AT&T will acquire 50 MHz of spectrum, comprising 30 MHz in the 3.45 GHz band and 20 MHz in the 600 MHz band, to bolster its 5G and fixed wireless networks. The carrier has already deployed the mid-band spectrum to increase network capacity while the sale is pending, with low-band frequencies scheduled for deployment after closing. AT&T expects to complete the transaction in mid-2026.
SpaceX is purchasing 65 MHz of spectrum in the 1.695 GHz to 2.2 GHz range to enhance Starlink’s direct-to-device mobile service. The acquisition will proceed in two stages, with licenses first transferred to a trust to facilitate regulatory approvals outside the US. The final transfer to SpaceX is expected by 30 November 2027, although the companies noted the timeline could advance.
The approval has faced opposition from the Rural Wireless Association, which argues the deal stifles competition and disadvantages rural providers. The association criticised the FCC for dismissing concerns regarding reduced access to spectrum in hard-to-serve areas. Meanwhile, EchoStar has objected to an FCC-imposed $2.4 billion escrow condition intended to compensate construction firms for unpaid network-building contracts, stating it is evaluating its legal options and disputing claims that it will not fulfil vendor obligations.
In his press release, Chairman Carr credited President Trump for the approval, claiming it demonstrates American leadership in next-generation technology. The FCC acknowledged its own role in the events leading to the sale, describing the situation as a precedentially novel fact pattern. EchoStar’s Boost Mobile subsidiary will continue to operate but will run over the AT&T network rather than its own, while also gaining access to Starlink’s mobile network.
