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FCC spectrum sale to AT&T and Starlink draws rural carrier fire

Ars Technica •
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The FCC’s recent approval letting AT&T and SpaceX’s Starlink acquire portions of EchoStar’s 3.45 GHz spectrum has sparked outrage among rural wireless operators. The Rural Wireless Association argues the moves deepen a pattern of spectrum aggregation that squeezes small carriers and hampers service rollout in hard‑to‑reach areas. Their statement warns that reduced access to mid‑band blocks will stall network expansion where it’s needed most. The deal values run into the billions.

Starlink, while not a traditional carrier, is positioning itself to dominate the emerging Direct‑to‑Device market that uses low‑Earth‑orbit satellites to beam connectivity to standard smartphones. AT&T, already holding special authority to use the mid‑band band, says it will boost capacity now and add low‑band frequencies after the deal closes, targeting completion by mid‑2026. These bands are crucial for 5G rollout.

FCC Chairman Brendan Carr framed the approvals as a triumph of the Trump administration’s tech agenda, claiming they will deliver faster internet and “ubiquitous connectivity from space.” Rural carriers, however, see little competition benefit and hope future EchoStar divestitures might free up blocks for smaller players. The dispute underscores how spectrum policy continues to shape broadband equity in America. Stakeholders will watch the FCC’s next moves.