Washington: Two Democratic lawmakers have raised significant concerns over EchoStar Corp’s proposed $40 billion sale of wireless spectrum to AT&T Inc. and SpaceX, warning that the deals could stifle competition in both the U.S. wireless and satellite communications markets.
Senator Elizabeth Warren and Representative Greg Casar sent a joint letter to the Federal Communications Commission (FCC) and the U.S. Justice Department, urging a thorough review of the proposed transactions. The deals include a $23 billion sale to AT&T and a $17 billion transfer to SpaceX, both of which would substantially increase the companies’ holdings in highly valuable spectrum.
In their letter, the lawmakers expressed concern that AT&T’s acquisition could further consolidate the wireless industry, potentially reducing consumer choice and driving up costs. They also warned that SpaceX’s purchase could entrench the company’s dominant position in the satellite internet market, limiting competition and innovation.
“AT&T’s proposed acquisition of spectrum from EchoStar threatens to further consolidate the wireless industry and exacerbate harms to consumers,” the letter stated. “SpaceX’s proposed acquisition of spectrum from EchoStar may entrench SpaceX’s already dominant position in the satellite market.”
The lawmakers urged the FCC and the Justice Department’s Antitrust Division to rigorously evaluate the competitive implications of the transactions before granting approval. Their appeal reflects growing concern among policymakers about the concentration of spectrum a critical resource for mobile and satellite services and the long-term impact on both market fairness and consumer welfare.
The FCC and Justice Department had not immediately responded to requests for comment. EchoStar, AT&T, and SpaceX have previously asserted that the spectrum sales would facilitate expanded deployment of high-speed wireless and satellite services across the United States.
EchoStar’s decision to sell spectrum comes amid broader discussions about spectrum utilization and regulatory compliance. Analysts note that such transactions are common in the telecom industry, allowing airwaves to be deployed more efficiently. However, critics argue that the increasing concentration of spectrum in the hands of a few companies could reduce competition and hinder the development of new technologies.
The outcome of the regulatory review is expected to have wide-reaching implications for the U.S. wireless and satellite sectors, as authorities weigh the balance between encouraging investment and protecting market competition.