Deals worth $40 billion are finalized after FCC Chairman Carr pressured EchoStar.

The Federal Communications Commission (FCC) approved a $40 billion deal for AT&T and SpaceX to purchase spectrum licenses from EchoStar. The sale includes 30 MHz nationwide in the 3.45 GHz band, 20 MHz in the 600 MHz band for AT&T, and 65 MHz across several chunks between 1.695 GHz and 2.2 GHz for SpaceX to enhance Starlink services.

FCC Chairman Carr forced EchoStar’s hand by threatening to revoke licenses if not sold. The deals come amid growing concerns over spectrum consolidation among major carriers, affecting small wireless operators who fear market dominance.

For builders and operators, the deal bolsters AT&T’s 5G network capabilities and provides SpaceX with crucial terrestrial spectrum for its satellite mobile service. Enterprises may face challenges as larger players continue to amass control over key frequencies, impacting rural deployment efforts and competition.

The Rural Wireless Association criticized the move, warning that it could hinder wireless services in hard-to-reach areas. Meanwhile, EchoStar plans to challenge the FCC’s escrow requirement, adding another layer of uncertainty to the approval process.

What matters

• FCC approved $40 billion deals for AT&T and SpaceX to buy EchoStar’s licenses.
• Licenses will expand mid-band and low-band spectrum options, aiding 5G and satellite services.
• Small carriers criticize decisions as part of broader consolidation concerns.

Why it matters

Small carriers criticize decisions as part of broader consolidation concerns.

This GenAI News article was prepared in original wording using reporting and materials published by Ars Technica. Source reference: https://arstechnica.com/tech-policy/2026/05/fcc-angers-small-carriers-by-helping-att-and-starlink-buy-echostar-spectrum/.

Drafted by the GenAI News review pipeline.