FCC Approves EchoStar Spectrum Sale to AT&T, SpaceX for $40 Billion

The Federal Communications Commission approved on Tuesday EchoStar Corporation's sale of approximately 115 megahertz of nationwide wireless spectrum to AT&T and SpaceX in separate transactions totaling about $40 billion.

AT&T will acquire roughly 50 megahertz, including 30 megahertz of midband 3.45 GHz spectrum and 20 megahertz of lowband 600 MHz spectrum, for around $23 billion. The carrier plans to use the frequencies to expand its 5G network and home internet services, with a focus on rural, remote and underserved areas where lowband spectrum provides broad coverage and building penetration. SpaceX will purchase about 65 megahertz, consisting of 40 megahertz of AWS-4, 10 megahertz of AWS-H block and 15 megahertz of unpaired AWS-3 spectrum, for roughly $17 billion. The acquisition will support Starlink's next-generation direct-to-device services, enabling satellite connections to standard mobile phones for voice, text and data in remote locations or emergencies.

The approvals follow a yearlong FCC review prompted by an investigation into EchoStar's use of its spectrum licenses. Regulators determined the sales would accelerate internet speeds, enhance competition and improve...