WASHINGTON - The Federal Communications Commission on Tuesday authorized EchoStar’s $40 billion divestiture of wireless spectrum, approving separate purchases by SpaceX and AT&T while imposing a set of regulatory conditions on the parties.
Under the approved transactions, AT&T will acquire about 50 megahertz of EchoStar’s nationwide spectrum for $23 billion. That allocation comprises 30 MHz of mid-band spectrum and 20 MHz of low-band spectrum, which the FCC said is intended to support AT&T’s 5G network and expand coverage, particularly across rural and underserved areas.
SpaceX will buy 65 megahertz for $17 billion to advance Starlink’s device-to-device offering. The commission granted SpaceX exclusive-use rights to the purchased spectrum for its device-to-device service and provided waivers to accommodate the intersection of wireless and satellite broadband technologies. The approval allows SpaceX to deploy the spectrum in terrestrial, space-based and hybrid network configurations.
The FCC also required that AT&T and EchoStar establish a hybrid Mobile Virtual Network Operator arrangement to keep Boost Mobile operating, according to the commission’s announcement.
Regulatory conditions and protections
In addition to the spectrum allocations, the FCC imposed construction and financial conditions. The agency mandated that AT&T complete network buildout years earlier than the carrier had originally planned and faster than standard post-auction construction obligations. Separately, EchoStar must place $2.4 billion into an escrow account to cover potential liabilities tied to disputes over work performed under the licenses.
The commission also approved waivers tailored to SpaceX’s role as a satellite broadband operator seeking to integrate terrestrial services, enabling the company to pursue hybrid architectures that combine space-based and ground-based elements.
Context included in the commission’s record
The FCC’s action follows public developments earlier this year: in June, President Donald Trump urged EchoStar and FCC Chairman Brendan Carr to reach an agreement regarding the company’s wireless spectrum licenses. The record also notes that DirecTV terminated its agreement to acquire EchoStar’s satellite television business in 2024 after a debt-exchange offer failed.
The commission’s approval finalizes the transfers while attaching conditions designed to accelerate deployment and mitigate potential disputes tied to the licenses.