en.Wedoany.com Reported - The U.S. Federal Communications Commission (FCC) officially approved two spectrum transactions totaling over $40 billion on May 12, 2026, local time. Under the deals, approximately 115MHz of mid-band spectrum resources held by EchoStar will be transferred to SpaceX and AT&T respectively. The core terms and assessment requirements of these transactions are specified in FCC official documents DA-26-471 and DA-26-470, marking the largest spectrum resource reallocation case in the U.S. communications sector in recent years.
According to the regulatory approval documents, SpaceX will acquire approximately 65MHz of spectrum resources, covering the AWS-4 (2000-2020MHz, 2180-2200MHz), AWSH (1915-1920MHz, 1995-2000MHz), and unpaired AWS-3 (1695–1710MHz) bands, to support its Starlink Mobile Low-Earth Orbit satellite Direct-to-Device (D2D) service. This service enables standard smartphones to access the satellite network at high speeds, with related technologies already incorporated into the 5G Non-Terrestrial Network (NTN) standard framework. This marks the first time SpaceX has obtained exclusive, contiguous spectrum resources on a nationwide scale. The FCC also granted SpaceX a technology-neutral waiver, allowing it to flexibly use the spectrum for terrestrial, space-based, or hybrid network architectures. As previously disclosed by SpaceX, Starlink Mobile's current global monthly active users have reached 10 million, a figure projected to exceed 25 million by the end of 2026. The wider bandwidth operations supported by this dedicated spectrum are expected to increase the first-generation D2D system capacity by over 100 times, potentially achieving full 5G cellular connectivity capabilities comparable to existing terrestrial LTE services.
The transaction is structured through a two-step trust transfer process, with final closing expected by November 30, 2027. The FCC has imposed strict phased performance assessments: key milestones are set at the 2nd, 4th, and 9th years post-closing, requiring geographic coverage to reach 90% and service availability to progressively increase to 90%. Failure to meet these targets could result in early termination of the deal or even revocation of spectrum licenses. EchoStar is required to establish a $2.4 billion escrow fund to address claims from tower companies and suppliers arising from Dish Network's previous abandonment of its 5G terrestrial network buildout. This escrow condition is listed as the primary prerequisite in the approval documents.
In this round of transactions, AT&T acquired approximately 50MHz of spectrum resources, including the 3.45GHz mid-band and 600MHz low-band, focusing on accelerating the large-scale deployment of 5G networks and fixed wireless broadband. The transaction value is approximately $23 billion. AT&T has already completed 3.45GHz band deployment at 23,000 sites nationwide, boosting 5G download speeds by up to 80% in some areas. The FCC attached mandatory accelerated build-out requirements for the 600MHz low-band spectrum acquired by AT&T, demanding a faster network construction pace than allowed under standard rules. AT&T Chairman and CEO John Stankey previously stated that this spectrum acquisition would further enhance customers' 5G wireless and home internet experience. Additionally, a hybrid MVNO arrangement was established between AT&T and EchoStar to support the continued operation of Boost Mobile.
In his approval statement, FCC Chairman Brendan Carr noted that this transaction will release approximately 115MHz of underutilized mid-band spectrum to the private sector, benefiting American consumers with faster internet speeds, intensified competition, and innovative services including high-speed connectivity from space directly to smartphones. Carr framed this within the Trump administration's "Build America Agenda," stating that by the end of 2027, approximately 300MHz of low- and mid-band spectrum will be released through auctions and secondary market transactions. The FCC's Wireless Telecommunications Bureau and Space Bureau jointly completed this approval.
From an industry competitive landscape perspective, the 65MHz of nationwide contiguous spectrum acquired by SpaceX directly penetrates the core asset stronghold of traditional terrestrial operators like AT&T and Verizon. Starlink Mobile's commitment to providing full cellular connectivity capabilities comparable to terrestrial 5G by mid-2027 means that once scaled coverage is achieved, competition for users in rural and remote areas will no longer depend on terrestrial base station construction. Following the transaction approval, AT&T rapidly advanced its deployment, with its 3.45GHz mid-band sites already covering 23,000 base stations and boosting 5G download speeds by 80%, while the 600MHz low-band will focus on filling rural coverage gaps. T-Mobile and Verizon now face a new competitive variable: a satellite operator holding nationwide D2D spectrum.
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