FCC Greenlights US$40bn Spectrum Deals for AT&T and SpaceX

The battle for spectrum dominance in the US is entering a new phase.

The FCC has approved two blockbuster transactions involving AT&T, EchoStar and SpaceX that will expand 5G capacity and support the rollout of satellite-to-phone connectivity.

The deals, valued at more than US$40bn collectively, will see EchoStar sell around 115MHz of nationwide spectrum holdings.

Under the agreements approved by the FCC’s Wireless Telecommunications Bureau and Space Bureau, AT&T will acquire approximately 50MHz of nationwide spectrum for its 5G network.

Elon Musk's SpaceX will gain around 65MHz for its Starlink D2D (Direct-to-Device) offering.

The approvals come as US operators race to secure additional spectrum capacity to support higher mobile data demand and fixed wireless access growth.

FCC Chairman Brendan Carr framed the transactions as part of a broader strategy to increase spectrum availability.

He says that the approvals, along with other secondary-market transactions in the pipeline, "put America on the path" to "releasing approximately 300 megahertz of low- and mid-band spectrum" by the end of 2027.

He adds: "In the coming months, we will be taking additional actions to ensure that companies who want to innovate in D2D have the regulatory framework and spectrum resources to match.

"Our decisions also bring important closure that allows stakeholders to focus on the future.”

AT&T expands 5G spectrum position

AT&T’s acquisition includes around 30MHz of nationwide 3.45GHz mid-band spectrum and 20MHz of 600MHz low-band spectrum previously held by EchoStar.

According to the FCC, AT&T have already received temporary authority to begin deploying parts of the 3.45GHz spectrum.

The regulator said the operator rolled out the spectrum across 23,000 sites within weeks, increasing 5G download speeds nationwide by up to 80%.

The FCC added that AT&T will face accelerated buildout obligations tied to the transaction as regulators push operators to use licensed spectrum assets more intensively.

The agency also said the additional low-band holdings would help extend wireless coverage in rural and underserved areas, while the added mid-band capacity would support fixed wireless broadband services for homes and businesses.

SpaceX strengthens D2D ambitions

For SpaceX, the transaction marks a significant step in the development of its Starlink direct-to-device platform.

The company will acquire AWS-3, AWS-4 and H-Block spectrum assets, giving it access to contiguous nationwide spectrum for satellite-based mobile connectivity services.

The FCC said the approval builds on earlier decisions supporting D2D competition, including approval for AST SpaceMobile to deploy a 248-satellite D2D system.

As part of the approval, SpaceX received waivers allowing the spectrum to be used flexibly across terrestrial, satellite and hybrid network architectures.

The FCC said those rights would be tied to new performance obligations intended to ensure reliable public connectivity services are deployed within a defined timeframe.

Alongside the spectrum sales, AT&T and EchoStar will also establish a hybrid mobile virtual network operator arrangement designed to support the future viability of Boost Mobile.

The FCC is additionally requiring EchoStar to create a US$2.4bn escrow account linked to qualifying claims associated with the transactions.