FCC chairman helps AT&T cement dominance with $23 billion spectrum deal

The FCC’s threat drew widespread backlash from across the political spectrum. The conservative Free State Foundation told the FCC that the move would create “regulatory uncertainty” for carriers, while consumer advocacy groups warned it would harm competition and wireless users.

The AT&T/EchoStar deal was “inevitable in light of Chairman Carr’s determination that immediate intensity of spectrum use should trump concerns about competition and consumer welfare,” Harold Feld, senior VP of consumer advocacy group Public Knowledge, told Ars. “We can only hope that the FCC will take steps to facilitate competition in other ways, such as adopting mandatory roaming requirements and mandatory cell-phone unlocking.”

Michael Calabrese of New America’s Open Technology Institute told Ars that “the elimination of EchoStar as a facilities-based competitor is a very bad day for consumers.” But he said there’s a silver lining as EchoStar will avoid bankruptcy and continue to provide service. “Although it will be dependent on wholesale access to AT&T’s network, its Boost brand can leverage the company’s own 5G core, control customer relationships, and quite possibly offer better and more affordable service to millions,” Calabrese said.

The EchoStar spectrum that SpaceX wants is still available, industry analyst Walter Piecyk pointed out today. SpaceX has been seeking access to spectrum in the 2 GHz band.

SpaceX told the FCC in April that “the 2 GHz band remains ripe for sharing among next-generation satellite systems.” EchoStar countered by accusing SpaceX of making “another land grab for even more free spectrum.”

Big 3 oligopoly gets stronger

Today, Ergen said that EchoStar met its FCC obligations—but chose to sell the spectrum anyway. The company “met all of the FCC’s network buildout milestones,” Ergen said. “However, this spectrum sale to AT&T and hybrid MNO [Mobile Network Operator] agreement are critical steps toward resolving the FCC’s spectrum utilization concerns.”

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