FCC Approves EchoStar's 65 Megahertz Spectrum Sale to SpaceX, 50 Megahertz to AT&T

The FCC approved a $40 billion spectrum sale from EchoStar, with SpaceX acquiring 65 MHz of S-band spectrum for $17 billion and AT&T acquiring 50 MHz of mid- and low-band spectrum for $23 billion. SpaceX plans to use the S-band allocation to power its Starlink Direct to Cell service, enabling smartphones to connect to satellites without specialized hardware — a capability that would extend coverage to the roughly 500,000 square miles of the U.S. currently unserved by any terrestrial carrier.

The deal is a financial lifeline for EchoStar, whose Hughes Network Systems subsidiary faced just $119 million in cash against $1.5 billion in debt maturing in August 2026. EchoStar signed a Restructuring Support Agreement in March 2026 with creditors holding 82% of its debt, and the spectrum proceeds — held in $2.4 billion escrow per FCC conditions — are critical to avoiding Chapter 11.

AT&T must accelerate its network buildout faster than standard FCC timelines as a condition of the approval. For SpaceX/SPCEX, the S-band spectrum is a key enabler of the next phase of Starlink expansion; for T, the mid-band acquisition strengthens 5G coverage in rural markets where spectrum is sparse. EchoStar's asset divestiture transforms it from a satellite operator into a restructured holding company.

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