FCC Approves $40 Billion EchoStar Spectrum Sale to SpaceX, AT&T
Transactions Free Up 115 MHz of Mid-Band Spectrum, Advance Satellite Direct-to-Device Services
The Federal Communications Commission has approved the sale of approximately 115 megahertz of EchoStar spectrum in two transactions collectively valued at more than $40 billion, clearing the way for expanded direct-to-device satellite service and faster 5G broadband deployment across the United States.
“As part of our Build America agenda, the FCC is running a two-part play in wireless to free up spectrum: FCC auctions and secondary-market transactions.”
FCC Chairman Brendan Carr
The FCC’s Wireless Telecommunications Bureau and Space Bureau approved EchoStar’s sale of roughly 65 megahertz of spectrum to SpaceX and an additional 50 megahertz to AT&T. The decisions, announced May 12 by FCC Chairman Brendan Carr, represent a major step in the agency’s effort to redirect underused spectrum into the hands of providers the FCC says are motivated to expand connectivity for American consumers.
SpaceX’s acquisition marks the first time the company has obtained exclusive-use, contiguous spectrum nationwide for a Starlink direct-to-device (D2D) service. D2D technology enables smartphones and IoT devices to connect directly to low Earth orbit satellites, providing coverage in remote and underserved areas without requiring specialized hardware. SpaceX will acquire approximately 15 megahertz of unpaired nationwide AWS-3 spectrum, 40 megahertz of nationwide AWS-4 spectrum, and 10 megahertz of nationwide H-Block spectrum.
The FCC also granted SpaceX a series of waivers allowing it to use the acquired spectrum flexibly across terrestrial, space-based, and hybrid network architectures — an approach the agency described as technologically neutral. SpaceX will be subject to first-of-its-kind performance obligations requiring intensive use of the spectrum and delivery of meaningful public connectivity within years of the approval.
AT&T’s purchase includes approximately 30 megahertz of nationwide 3.45 GHz mid-band spectrum and approximately 20 megahertz of nationwide 600 MHz low-band spectrum. Following announcement of the sale, AT&T received special authority to begin deploying EchoStar’s 3.45 GHz spectrum and within weeks had activated it across 23,000 sites, boosting 5G download speeds by up to 80 percent nationwide. AT&T will be required to build out its new 600 MHz greenfield network on an accelerated timeline — years faster than FCC rules would otherwise require.
The two transactions also preserve the Boost Mobile brand. Under the terms of the approval, AT&T and EchoStar will establish a hybrid Mobile Virtual Network Operator arrangement to ensure the continued operation of Boost Mobile for consumers. As a condition of the deals, the FCC required EchoStar to establish an escrow account of $2.4 billion to cover qualifying claims and help resolve outstanding disputes.
The D2D approvals build on earlier Space Bureau decisions that greenlit AST SpaceMobile’s 248-satellite direct-to-device system and confirmed the exclusive nature of D2D spectrum bands. The FCC framed the combined actions as part of a broader strategy to release approximately 300 megahertz of low- and mid-band spectrum by the end of 2027 through a combination of auctions and secondary-market transactions.
“As part of our Build America agenda, the FCC is running a two-part play in wireless to free up spectrum: FCC auctions and secondary-market transactions,” Chairman Carr said. “Today’s decisions also represent another milestone in the FCC’s concrete plan for securing U.S. leadership in D2D offerings. In the coming months, we will be taking additional actions to ensure that companies who want to innovate in D2D have the regulatory framework and spectrum resources to match.”
Separately, the FCC’s Space Bureau issued a public notice seeking comment on potential revisions to a set of 328 geostationary satellite network reference links established under the agency’s April 30 Report and Order modernizing spectrum-sharing rules for satellite broadband. The proceeding, SB Docket No. 25-157, covers the 10.7–12.7 GHz, 17.3–18.6 GHz, and 19.7–20.2 GHz frequency bands. Comments are due June 11, 2026, with reply comments due June 26, 2026.
The reference links are used by non-geostationary satellite operators to demonstrate they will not cause harmful interference to geostationary networks. The Space Bureau is accepting comment on whether additional links should be added, whether existing links should be removed to reduce the burden of compatibility analyses, and whether any technical parameters should be revised. Comments may be filed electronically through the FCC’s Electronic Comment Filing System at www.fcc.gov/ecfs.