FCC Approves AT&T and Starlink Spectrum Deals, Angering Small Carriers

The Federal Communications Commission (FCC) has officially approved the sale of EchoStar spectrum licenses to AT&T and SpaceX’s Starlink in deals totaling $40 billion. This decision follows intense pressure from FCC Chairman Brendan Carr, who previously threatened to revoke EchoStar’s licenses due to alleged underutilization of the spectrum. Under the agreement, AT&T will acquire significant mid-band and low-band spectrum for its 5G networks, while SpaceX purchases spectrum to enhance its Direct-to-Device satellite mobile services. The approval has sparked significant backlash from the Rural Wireless Association, which argues that the FCC ignored competition concerns and that the consolidation disadvantages small, rural providers by limiting their access to essential spectrum resources. Additionally, EchoStar has objected to a specific FCC condition requiring it to fund a $2.4 billion escrow account to compensate construction companies involved in its previous network build-out. While EchoStar’s Boost Mobile subsidiary will continue operations using AT&T and Starlink networks, the ruling marks a major shift in spectrum ownership, further entrenching the dominance of major telecommunications players in the US market.