AT&T Gains FCC Approval for $1 Billion Spectrum Acquisition After Dropping DEI Policies

AT&T recently secured approval from the Federal Communications Commission (FCC) for its $1.02 billion acquisition of valuable spectrum assets from UScellular, following its decision to discontinue diversity, equity, and inclusion (DEI) policies. This move aligns with an executive order issued early in 2024 by President Donald J. Trump, encouraging private companies to end DEI initiatives.

FCC Requires the End of DEI Programs for Transaction Approval

Many telecom and broadcasting firms seeking regulatory approval for large transactions have learned that cooperation with the current administration and the FCC’s policies is essential. AT&T’s acquisition of 1,250 million MHz-Pops of 3.45 GHz spectrum and 331 million MHz-Pops of 700 MHz B/C block licenses from UScellular was contingent on the company ending its DEI programs.

The FCC, led by Chairman Brendan Carr—appointed by President Trump—confirmed on Thursday that the deal will enhance AT&T’s network coverage, capacity, and performance, ultimately boosting customer experience.

Public Opinion on AT&T’s Decision to End DEI

Obviously, as AT&T received FCC approval.
No, the FCC would have approved the deal regardless.
It's difficult to say.
Vote

Current poll results show 70% believe ending DEI helped AT&T gain approval, 20% disagree, and 10% remain uncertain (based on 20 votes).

Opposition from Rural Wireless Association

The Rural Wireless Association (RWA) voiced opposition to the FCC’s approval, expressing concern that this consolidation trend could lead to higher wireless prices and roaming difficulties, particularly impacting rural American communities.

T-Mobile and Verizon Follow Similar Paths

Earlier in 2024, T-Mobile halted DEI initiatives to gain FCC approval for its $4.4 billion purchase of UScellular customers, retail stores, and spectrum licenses, receiving approval in August. Verizon took similar steps when it discontinued DEI programs to obtain approval for its acquisition of fiber-optic provider Frontier Communications, granted in May.

FCC Chairman Brendan Carr’s Influence on Industry Policies

Chairman Carr has actively scrutinized DEI programs across the industry, including opening an investigation into NBC News' parent company for its promotion of such initiatives. His firm stance also reshaped the wireless landscape by putting pressure on EchoStar, parent of Boost Mobile, over 5G network buildout and spectrum usage.

EchoStar’s Spectrum Sales End Boost Mobile’s 5G Expansion

After FCC scrutiny, EchoStar sold significant spectrum to AT&T for $23 billion, effectively halting Boost Mobile's plans to be a standalone fourth major wireless carrier. EchoStar also sold valuable 2GHz spectrum to SpaceX for $17 billion.

Boost Mobile’s 5G independent network development was abandoned, and it transitioned into a hybrid Mobile Network Operator model, relying on AT&T’s nationwide infrastructure to provide service.