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

TLDR

• EchoStar has secured FCC approval for its $40 billion spectrum transaction with SpaceX and AT&T, marking a significant regulatory milestone.
• AT&T will purchase approximately 50 MHz of nationwide spectrum for $23 billion to bolster its 5G network infrastructure.
• SpaceX will obtain 65 MHz of spectrum for $17 billion to enhance Starlink’s device-to-device capabilities and expand its satellite-wireless integration efforts.
• EchoStar will continue operating Boost Mobile under a hybrid MVNO agreement with AT&T.
• Shares declined as investors assessed the implications of the sale on EchoStar’s long-term growth trajectory.

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(SeaPRwire) –   The Federal Communications Commission has approved EchoStar’s (SATS) $40 billion sale of spectrum assets to SpaceX and AT&T, removing a key regulatory obstacle in the company’s plan to divest critical wireless frequencies.

EchoStar Corporation, SATS

As part of the agreement, AT&T will acquire roughly 50 MHz of EchoStar’s nationwide spectrum for $23 billion, comprising 30 MHz of mid-band and 20 MHz of low-band spectrum.

SpaceX will purchase 65 MHz of spectrum for $17 billion, which will be used to advance Starlink’s direct-to-device service and support broader wireless-satellite connectivity initiatives.

According to the FCC, the transaction is expected to enhance connectivity throughout the United States, with AT&T’s low-band spectrum anticipated to extend service into rural and underserved regions.

Spectrum Sale Details

The FCC authorized the transfer of EchoStar’s 600 MHz and 3.45 GHz licenses to AT&T, as well as the assignment of AWS-4, AWS-H, unpaired AWS-3, and earth station licenses to SpaceX.

The approval grants SpaceX exclusive-use spectrum rights for Starlink operations and includes regulatory waivers permitting the use of this spectrum across terrestrial, satellite-based, and hybrid network configurations.

AT&T and EchoStar will implement a hybrid Mobile Virtual Network Operator framework designed to ensure the continued operation of Boost Mobile post-spectrum transfer.

The FCC also mandated that AT&T accelerate its network deployment timeline beyond its original schedule, with this obligation linked to specific coverage and rollout commitments tied to the deal.

Investor Reaction and Strategic Questions

Following the FCC’s approval, EchoStar’s stock experienced downward pressure as investors scrutinized the strategic impact of the sale on the company’s future prospects.