The Federal Communications Commission (FCC) has approved two spectrum transactions involving EchoStar, AT&T, and SpaceX that together exceed $40 billion in value.
The deals are expected to accelerate the expansion of 5G broadband and direct-to-device (D2D) satellite services across the United States.
FCC Chairman Brendan Carr said the approvals will help unlock 115 megahertz of underused mid-band spectrum, strengthen America’s wireless infrastructure, and support high-speed connectivity services that can connect smartphones directly to low-earth orbit satellites.
EchoStar Spectrum Sale to AT&T for 5G Expansion
EchoStar will sell 50 megahertz of nationwide spectrum to AT&T. The deal includes approximately 30 MHz of 3.45 GHz mid-band spectrum and around 20 MHz of 600 MHz low-band spectrum for AT&T’s nationwide 5G network expansion.
AT&T has already started deploying the newly acquired 3.45 GHz spectrum across more than 23,000 sites after receiving special temporary authority. According to the FCC, the deployment has improved nationwide 5G download speeds by up to 80 percent.
The additional mid-band spectrum is expected to strengthen AT&T’s fixed wireless broadband offerings for homes and businesses while supporting industrial sectors such as manufacturing and energy. The low-band spectrum will improve coverage in rural, remote, and underserved regions across the U.S.
FCC imposed stringent buildout obligations on AT&T to ensure rapid deployment of the spectrum assets. The regulator stated that AT&T must build its greenfield 600 MHz network faster than originally requested and will not receive any buildout extensions for the already-deployed 3.45 GHz assets.
SpaceX Gains Exclusive Spectrum for Starlink Direct-to-Device Services
EchoStar will sell approximately 65 megahertz of nationwide spectrum to SpaceX for its expanding Starlink direct-to-device ambitions.
The spectrum package includes: 15 MHz of unpaired AWS-3 spectrum; 40 MHz of AWS-4 spectrum and 10 MHz of H-Block spectrum.
The FCC said this marks the first time SpaceX will gain access to exclusive-use contiguous nationwide spectrum for Starlink D2D services.
The approval comes shortly after the FCC’s Space Bureau authorized AST SpaceMobile to deploy a 248-satellite D2D constellation and confirmed the exclusive nature of D2D spectrum bands.
Direct-to-device technology allows smartphones and IoT devices to connect directly to satellites without requiring traditional cellular towers. The FCC believes the technology could significantly improve coverage in remote regions and provide seamless emergency and broadband connectivity.
Brendan Carr said the FCC is targeting the release of approximately 300 megahertz of low- and mid-band spectrum by the end of 2027 through future auctions and market transactions.
FCC granted SpaceX several technology-neutral waivers allowing flexible use of the acquired spectrum across terrestrial, satellite, and hybrid network architectures. The agency added that SpaceX must meet strict performance obligations within a few years to ensure meaningful public connectivity services.
EchoStar and AT&T will establish a hybrid Mobile Virtual Network Operator agreement designed to support the continued viability of Boost Mobile.
FCC Mandates $2.4 Billion Escrow Fund
FCC imposed a condition requiring EchoStar to establish a $2.4 billion escrow account that can be accessed for qualifying claims linked to the transactions. According to the regulator, the escrow structure is intended to facilitate resolution of outstanding disputes while allowing the parties to proceed with the approved spectrum transfers.
