FCC chairman helps AT&T cement dominance with $23 billion spectrum deal

EchoStar has agreed to sell $23 billion worth of spectrum licenses to AT&T in a deal spurred by threats made by the Federal Communications Commission to revoke EchoStar's rights to use the spectrum. AT&T said it will use the spectrum to boost its 5G mobile network and expand its fixed wireless home Internet service. The AT&T/EchoStar deal, which is expected to be completed in mid-2026, could mark the beginning of EchoStar's spectrum portfolio being carved up and sold to other carriers. Starlink operator SpaceX has sought access to some of EchoStar's spectrum, alleging that the company isn't putting it to good use. An EchoStar announcement today said, "EchoStar has entered into a definitive agreement with AT&T to sell the company's 3.45 GHz and 600 MHz spectrum licenses—a total of 50 MHz of nationwide spectrum—for approximately $23 billion, subject to regulatory approval. In addition, the companies have amended their network services agreement to create a hybrid mobile network operator (MNO) relationship. This transaction is part of EchoStar's ongoing efforts to resolve the Federal Communications Commission's (FCC) inquiries." AT&T's deal announcement said the spectrum "licenses cover virtually every market across the US—over 400 markets in total—significantly strengthening AT&T's low-band and mid-band spectrum holdings." The 50 MHz of nationwide spectrum includes about 30 MHz in the 3.45 GHz band and 20 MHz in the 600 MHz band. In May, FCC Chairman Brendan Carr threatened to revoke EchoStar spectrum licenses. Carr directed FCC staff to investigate EchoStar's compliance with network construction deadlines and criticized a 2024 FCC decision to grant a deadline extension. FCC threat drew widespread backlash Carr's move came several weeks after SpaceX alleged that EchoStar subsidiary Dish Network "barely uses" its spectrum and urged the FCC to make the spectrum available to other carriers. President Trump later met with Carr and EchoStar Chairman Charlie Ergen, and that "meeting concluded with the president encouraging Carr and Ergen to work together and reach some kind of deal," Bloomberg reported in June.