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FCC Clears Echostar Deals

FCC Clears Echostar Deals

Murugaverl Mahasenan

Murugaverl Mahasenan

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Catenaa, Saturady, May 23, 2026-The US Federal Communications Commission approved more than $40 billion worth of spectrum deals involving EchoStar, AT&T and SpaceX, giving the financially pressured telecom company a lifeline while accelerating satellite-to-smartphone and 5G expansion plans across the United States.

The approvals cover multiple agreements signed after EchoStar abandoned efforts to become the country’s fourth nationwide mobile operator last year.

Under the transactions, AT&T acquired 30 MHz of nationwide 3.45 GHz spectrum and about 20 MHz of 600 MHz frequencies, while SpaceX secured access to AWS-3, AWS-4 and H-Block spectrum assets.

Financial Pressure Builds

The deals arrive as EchoStar struggles with worsening financial conditions tied largely to its declining pay television business.

The company recently reported a 5% drop in first-quarter revenue compared with a year earlier.

Its pay TV division lost 366,000 subscribers during the quarter.

EchoStar also posted a net loss of $146.9 million and burned through roughly $500 million in cash and cash equivalents.

Company filings showed $6.2 billion in current liabilities, including debt maturing this year, against only $3.5 billion in current assets. Cash reserves stood at roughly $1.3 billion.

Industry analysts say the spectrum sales may have become necessary for the company’s survival.

AT&T Expands 5G

AT&T has already started deploying the acquired 3.45 GHz spectrum inside its 5G network.

The company said the additional frequencies are improving performance for mobile subscribers and fixed wireless broadband customers.

The FCC attached strict rollout obligations to the 600 MHz spectrum purchase, requiring AT&T to deploy the frequencies faster than standard regulatory timelines.

The transaction also strengthens AT&T’s position in the intensifying US 5G competition against rivals including Verizon and T-Mobile.

SpaceX Strengthens D2D

Meanwhile, SpaceX gained access to 15 MHz of unpaired AWS-3 spectrum, 40 MHz of AWS-4 spectrum and 10 MHz of H-Block frequencies.

The FCC granted SpaceX permission to use the spectrum for terrestrial, satellite and hybrid network operations.

The move supports the company’s expanding direct-to-device ambitions through its Starlink satellite business.

Direct-to-device technology allows ordinary smartphones to connect directly to satellites without requiring specialized hardware.

The sector has become one of the fastest-growing battlegrounds inside the telecom industry as operators attempt to eliminate mobile dead zones.

Regulatory Push Continues

FCC Chairman Brendan Carr described the approvals as part of broader efforts to strengthen US leadership in next-generation communications technology.

Carr said the United States is on track to release roughly 300 MHz of low-band and mid-band spectrum by 2027 through auctions and secondary market transactions.

The FCC also recently eased power restrictions on low Earth orbit satellite constellations, further supporting direct-to-device development.

Telecom operators and satellite firms are now racing to build hybrid mobile-satellite systems capable of delivering broader nationwide coverage.

Industry observers expect additional regulatory measures supporting satellite connectivity and direct-to-device services later this year.