The FCC’s staff approved separate transfers of spectrum from EchoStar Spectrum to AT&T and to Space X. With the staff’s approval, ATT will acquire EchoStar’s 3.45 GHz and 600 MHz licenses. The staff also approved an application to assign EchoStar’s AWS-4, AW-H Block, and unpaired AWS-3 spectrum licenses, along with several earth station licenses, to SpaceX. Combined, the deals are worth $40 billion and approvals have been conditioned on the establishment of a $2.4 billion escrow account in which proceeds from the spectrum sales will be used to resolve payment disputes stemming from Dish’s 5G network buildout obligations.
In a related proceeding, staff dismissed VTel Wireless Inc.’s Petition for Reconsideration which asked the Bureau to reconsider EchoStar’s final construction deadline extensions for certain AWS-4, Lower 700 MHz E Block, 600 MHz, AWS-3, and AWS H Block licenses.
These decisions will expand AT&T’s spectrum holdings and make it easier for SpaceX to provide direct-to-device supplemental coverage from space services. Recent spectrum consolidation, including these deals is expected to increase the competitive pressure on small and rural wireless carriers.
