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FCC to End EchoStar 5G Probe After $40 Billion in Spectrum Deals with SpaceX and AT&T

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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

  • FCC Chair Brendan Carr said in a letter to EchoStar Chair Charles Ergen that the agency would conclude EchoStar has met its 5G obligations.

  • Carr called the outcome a “potential game changer” for American consumers, freeing up spectrum and injecting new competition into the wireless market.

  • EchoStar’s Boost Mobile brand, which lost 2 million customers in recent years, had been seen as providing limited competitive pressure.

Spectrum sales

  • $17B deal with SpaceX: Enables Starlink Direct-to-Cell services with upgraded satellites.

  • $23B deal with AT&T: Provides AT&T with 50 MHz of nationwide mid- and low-band spectrum.

Background

  • EchoStar was under probe for slow 5G deployment and potential “warehousing” of spectrum.

  • SpaceX had previously pressed the FCC to review EchoStar’s holdings.

  • The FCC’s move confirms EchoStar’s exclusive rights to key spectrum blocks for ground and satellite use.

Political backdrop

  • In June, President Donald Trump encouraged EchoStar and the FCC to resolve disputes over its wireless spectrum licenses.

  • 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.”

T-Mobile Ends DEI Programs Amid FCC Approval Push for Major Deals

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T-Mobile US announced on Wednesday that it is terminating its diversity, equity, and inclusion (DEI) programs as it seeks approval from the Federal Communications Commission (FCC) for two significant transactions. In a letter to FCC Chair Brendan Carr, made public the same day, T-Mobile confirmed it is ending all DEI-related policies “not just in name, but in substance.”

The wireless carrier will eliminate any individual roles or teams dedicated to DEI, remove all DEI references from its websites, and strip DEI content from employee training materials. FCC Chair Carr welcomed the move, calling it “another good step forward for equal opportunity, nondiscrimination and the public interest.”

T-Mobile is awaiting FCC clearance to acquire most of regional carrier United States Cellular’s wireless operations, including customers, stores, and 30% of its spectrum assets, in a $4.4 billion deal. The FCC is also reviewing a separate deal where T-Mobile plans to form a joint venture with investment firm KKR to acquire internet service provider Metronet, which serves over 2 million homes and businesses across 17 states. T-Mobile intends to invest approximately $4.9 billion for a 50% stake in the joint venture and full ownership of Metronet’s residential fiber operations upon closing.

However, the decision has drawn criticism from FCC Commissioner Anna Gomez, a Democrat, who called T-Mobile’s move “a cynical bid to win FCC regulatory approval” and accused the company of mocking its stated commitments to fighting discrimination and promoting fairness.

This is not the first time the FCC, under Chair Carr, a Trump appointee, has linked approval of telecom mergers with the dismantling of DEI programs. In May, the FCC approved Verizon’s $20 billion acquisition of Frontier Communications’ fiber-optic assets after Verizon agreed to end its DEI initiatives following an FCC investigation. Earlier in the year, Carr also opened a probe into Comcast’s promotion of DEI programs.

The rollback of DEI efforts follows former President Trump’s executive orders in January aimed at dismantling government-backed DEI programs and pressuring private companies to follow suit.

FCC Warns China Mobile of Potential Fines Over Non-Compliance in U.S. Probe

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The Federal Communications Commission (FCC) warned on Tuesday that it could impose fines on China Mobile for allegedly failing to cooperate with an investigation into whether its U.S. operations are circumventing American restrictions. The probe is part of a broader effort to ensure compliance with national security directives that have already barred several Chinese telecom firms from operating in the U.S.

According to the FCC, China Mobile has shown “misconduct” and “disregard” for regulatory authority by not providing the specific documents and information requested. The agency said the probe has been ongoing since November 2022, and that a supplemental request was sent in February this year. The company now has 30 days to comply before facing financial penalties.

Background and Concerns:

  • In 2019, the FCC determined that China Mobile was indirectly owned and controlled by the Chinese government, posing a national security risk due to the potential for cyber intrusions, espionage, and economic attacks.

  • The March 2024 probe includes nine Chinese companies, such as Huawei Technologies, ZTE, Hikvision, Dahua, China Telecom, and China Unicom Americas, all under suspicion of operating in ways that could sidestep U.S. bans.

  • FCC Chair Brendan Carr warned that some Chinese firms may be continuing operations under ambiguous interpretations of current restrictions.

Implications:

If China Mobile fails to respond within the specified timeframe, it may face escalating enforcement actions and monetary penalties, further straining U.S.-China technology and trade relations. The FCC’s stance signals increased vigilance in monitoring foreign telecom activity on U.S. soil, especially involving entities tied to state-backed ownership.

China Mobile has not yet issued a response.