AT&T has stepped forward to defend its $23 billion acquisition of spectrum licenses from EchoStar, asserting that the transaction will not diminish competition within the wireless market.
Submission of White Paper to the Justice Department
AT&T recently submitted a detailed white paper to the Justice Department's antitrust division explaining why its intended purchase of spectrum licenses from EchoStar merits approval. This acquisition will grant AT&T approximately 30 megahertz of nationwide 3.45 GHz spectrum—licenses it is currently leasing—and around 20 megahertz of 600 MHz spectrum. As part of the arrangement, EchoStar will operate Boost Mobile service primarily on AT&T’s infrastructure but with a distinct network core.
Unlike competitors T-Mobile and Verizon, which have restricted fixed wireless broadband expansion—an alternative option to cable in households—AT&T believes this spectrum acquisition will enhance its ability to provide bundled mobile and fixed broadband services to a broader customer base.
AT&T emphasized that it will continue to be a facilities-based competitor with this deal. The company noted that EchoStar may offer more affordable services through the new partnership, helping it compete more effectively after T-Mobile’s merger with Sprint in 2020.
Will AT&T Close the Gap on Verizon and T-Mobile?
Concerns Regarding Spectrum Concentration
Legal experts suggest AT&T’s acquisition of EchoStar spectrum is unlikely to face significant regulatory hurdles, especially since many alternative buyers, like SpaceX, have already accumulated substantial spectrum holdings. Cable companies appear unlikely to participate in this acquisition.
T-Mobile has voiced opposition to certain terms of the deal, urging the FCC to impose conditions or block the transaction to safeguard coverage in rural areas. AT&T aims to reach 40% of the U.S. population within three years and 75% within five years with this spectrum.
Consumer advocacy groups acknowledge that increasing AT&T’s spectrum may improve services but caution that equal spectrum holdings among the major providers do not automatically assure healthy market competition. The Rural Wireless Association proposed reallocating unused licenses to smaller rural carriers to enhance service in underserved regions.
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Ongoing Industry Debate
While AT&T’s spectrum acquisition offers an opportunity to expand network capabilities and improve service quality, it revives debates about market concentration and competition. Without vigilant regulatory oversight, the largest players could consolidate market power further, potentially reducing consumer choices.
