The U.S. Federal Communications Commission (FCC) will close its investigation into EchoStar’s 5G buildout obligations, following the company’s recent spectrum sales to SpaceX and AT&T worth a combined $40 billion.
FCC’s decision
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FCC Chair Brendan Carr said in a letter to EchoStar Chair Charles Ergen that the agency would conclude EchoStar has met its 5G obligations.
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Carr called the outcome a “potential game changer” for American consumers, freeing up spectrum and injecting new competition into the wireless market.
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EchoStar’s Boost Mobile brand, which lost 2 million customers in recent years, had been seen as providing limited competitive pressure.
Spectrum sales
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$17B deal with SpaceX: Enables Starlink Direct-to-Cell services with upgraded satellites.
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$23B deal with AT&T: Provides AT&T with 50 MHz of nationwide mid- and low-band spectrum.
Background
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EchoStar was under probe for slow 5G deployment and potential “warehousing” of spectrum.
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SpaceX had previously pressed the FCC to review EchoStar’s holdings.
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The FCC’s move confirms EchoStar’s exclusive rights to key spectrum blocks for ground and satellite use.
Political backdrop
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In June, President Donald Trump encouraged EchoStar and the FCC to resolve disputes over its wireless spectrum licenses.
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The transactions with SpaceX and AT&T still require final FCC approval.
Industry impact
Carr said the deals could reshape the wireless market:
“The status quo wasn’t working. We have a chance now to do something different … this is much more competitive.”