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FCC angers small carriers by helping AT&T and Starlink buy EchoStar spectrum

Topic: generalRegion: north americaUpdated: i2 outletsSources: 5Spectrum: Center OnlyFiltered: Global (0/5)· Clear⏱ 2 min read
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Story Summary
SITUATION
The Federal Communications Commission approved EchoStar's sales of spectrum licenses to AT&T and SpaceX, totaling $40 billion. This decision has angered small carriers who feel sidelined in the competitive landscape of mobile services.
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Spectrum: Center Only🌍Other: 4 · US: 1
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KEY FACTS
  • Last year, Carr threatened to revoke the licenses after SpaceX alleged that EchoStar subsidiary Dish Network “barely uses” the spectrum to provide mobile service to US consumers.
  • After Carr’s threat, the Charlie Ergen-led EchoStar struck deals to sell spectrum licenses to SpaceX for $17 billion and to AT&T for $23 billion.
  • AT&T is set to acquire 30 MHz of nationwide spectrum licenses in the 3.45 GHz band and 20 MHz in the 600 MHz band, giving it new options for both mid-band and low-band spectrum in its 5G and fixed wireless networks.
  • SpaceX is buying 65 MHz of nationwide spectrum licenses in a few chunks between 1.695 GHz and 2.2 GHz, which it can use to boost the Starlink satellite mobile service that is available for T-Mobile phones.
  • EchoStar objected to an FCC-imposed condition requiring it to fund an escrow account of $2.4 billion to compensate construction companies that were hired to build the Dish network.
  • EchoStar, which has said it had to scale back its network-construction plans to resolve the FCC’s complaint, issued a statement yesterday suggesting it may fight the escrow requirement.
HISTORICAL CONTEXT

This development falls within the broader context of General activity in North America. Current reporting indicates: Last year, Carr threatened to revoke the licenses after SpaceX alleged that EchoStar subsidiary Dish Network “barely uses” the spectrum to provide mobile service to US consumers.

After Carr’s threat, the Charlie Ergen-led EchoStar struck deals to sell spectrum licenses to SpaceX for $17 billion and to AT&T for $23 billion. AT&T is set to acquire 30 MHz of nationwide spectrum licenses in the 3.45 GHz band and 20 MHz in the 600 MHz band, giving it new options for both mid-band and low-band spectrum in its 5G and fixed wireless networks.

Brief

The Federal Communications Commission approved the sale of spectrum licenses from EchoStar to AT&T and SpaceX on May 13, 2026, a decision that has sparked significant backlash from smaller telecommunications carriers. The total value of these transactions amounts to $40 billion, with AT&T acquiring licenses worth $23 billion and SpaceX purchasing licenses valued at $17 billion.

This move is seen as a consolidation of power among larger players in the telecommunications market, raising concerns among smaller carriers about their competitiveness in the evolving landscape of mobile services.

AT&T will gain access to 30 MHz of spectrum in the 3.45 GHz band and 20 MHz in the 600 MHz band, which will enhance its capabilities for 5G and fixed wireless networks. Meanwhile, SpaceX plans to utilize its newly acquired 65 MHz of spectrum to bolster its Starlink satellite mobile service, which is available for T-Mobile customers.

The FCC's decision follows a threat from Chairman Brendan Carr, who indicated that EchoStar's licenses could be revoked due to claims that the company was not adequately utilizing its spectrum.

In response to the FCC's conditions, EchoStar has indicated it may challenge the requirement to fund a $2.4 billion escrow account for construction companies, a stipulation that has further complicated the situation.

The approval of these sales has left many small carriers feeling marginalized, as they argue that the FCC's actions disproportionately benefit larger corporations, potentially stifling competition and innovation in the telecommunications sector.

Sources
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