AT&T to buy EchoStar spectrum for $23B, further entrenching Big 3 oligopoly

EchoStar has reached an agreement to divest $23 billion in spectrum licenses to AT&T, driven by pressure from the Federal Communications Commission (FCC) regarding the company's spectrum usage rights. This acquisition will allow AT&T to strengthen its 5G mobile network and extend its fixed wireless home Internet services. The transaction, anticipated to close by mid-2026, could signify the beginning of EchoStar's spectrum assets being redistributed among various carriers. SpaceX, which operates the Starlink satellite service, has expressed interest in accessing portions of EchoStar's spectrum, arguing that the company has not been utilizing it effectively. In a recent announcement, EchoStar confirmed the definitive agreement with AT&T for the sale of its 3.45 GHz and 600 MHz spectrum licenses, totaling 50 MHz of nationwide spectrum, pending regulatory approval. This deal also includes an amendment to their existing network services agreement, establishing a hybrid mobile network operator (MNO) partnership. According to AT&T, the acquired spectrum licenses will enhance its holdings across over 400 markets in the United States, significantly bolstering both low-band and mid-band spectrum capabilities. The deal encompasses approximately 30 MHz in the 3.45 GHz band and 20 MHz in the 600 MHz band. The urgency for this agreement arose after FCC Chairman Brendan Carr threatened to revoke EchoStar's spectrum licenses, directing staff to scrutinize the company's adherence to network construction timelines. This scrutiny intensified following allegations from SpaceX that EchoStar's subsidiary, Dish Network, was underutilizing its spectrum. The situation escalated to a meeting involving President Trump, Carr, and EchoStar Chairman Charlie Ergen, which reportedly encouraged collaboration towards a resolution.