The proposed $40 billion (€34.1bn) sale of spectrum by Echostar to SpaceX and telco AT&T has been approved by the FCC.

In September 2025, EchoStar agreed to sell off 65Mhz of its spectrum to SpaceX for its direct-to-cell service, while AT&T acquired up 50Mhz of its spectrum to add to its 5G network coverage.

Now the agreement is sanctioned by the FCC, with the FCC noting that SpaceX will be able to use its spectrum for “terrestrial, space-based and hybrid network architectures.”

The FCC cited the benefits to national connectivity. The FCC said AT&T and EchoStar will establish a hybrid Mobile Virtual Network Operator arrangement to maintain Boost Mobile’s operations.

EchoStar must set up a $2.4 billion escrow account to cover potential amounts the company may owe related to disputes over work under the licenses, the FCC has ordered.

EchoStar said: “The FCC has continuously applauded EchoStar’s spectrum sales to AT&T and SpaceX as pro-competitive transactions that serve the public interest, and we appreciate that the FCC approved them today. However, these approvals come with an unprecedented involuntary escrow condition. We are analyzing this requirement and evaluating next steps.”

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Categories: Articles, Business, M&A

Tags: AT&T, Echostar, spacex