FCC Approves $40 Billion EchoStar Spectrum Sale to AT&T and SpaceX

TL;DR: The FCC cleared EchoStar’s sale of $40 billion in spectrum licenses to AT&T and SpaceX. The transactions give AT&T new 5G airwaves and SpaceX spectrum to strengthen Starlink mobile service for T‑Mobile users.

The Federal Communications Commission approved the deals yesterday after Chairman Brendan Carr pressured EchoStar to divest the licenses. Carr had threatened to revoke the rights following a complaint from SpaceX that EchoStar’s Dish Network subsidiary barely used the spectrum. EchoStar, led by Charlie Ergen, agreed to sell 30 MHz of 3.45 GHz band and 20 MHz of 600 MHz band to AT&T for $23 billion, and 65 MHz between 1.695 GHz and 2.2 GHz to SpaceX for $17 billion.

The orders came from the agency’s Wireless Telecommunications Bureau and Space Bureau.

AT&T will receive nationwide 30 MHz of the 3.45 GHz band and 20 MHz of the 600 MHz band, expanding its mid‑band and low‑band holdings for 5G and fixed wireless offerings. SpaceX will acquire 65 MHz of spectrum spread across the 1.695 GHz‑2.2 GHz range, which it plans to use to improve the Starlink satellite‑based mobile service available on T‑Mobile phones. The total purchase price equals $40 billion, split $23 billion to AT&T and $17 billion to SpaceX.

The spectrum shift gives AT&T additional capacity to carry more 5G traffic and to extend fixed wireless broadband to rural areas. For SpaceX, the new airwaves could reduce latency and increase throughput for Starlink mobile, making the service more competitive with terrestrial carriers.

EchoStar’s Boost Mobile brand will continue operating as an MVNO on AT&T’s network and will also gain access to Starlink’s mobile layer through a SpaceX agreement. However, EchoStar must fund a $2.4 billion escrow account to pay contractors who built the unfinished Dish network, a condition it has said it may challenge.

Whether EchoStar contests the escrow requirement in court and how quickly AT&T and SpaceX integrate the new spectrum into their networks will determine the real‑world impact of the $40 billion deal.