Lawmakers question EchoStar spectrum sales to AT&T and SpaceX

Two Democratic lawmakers raised concerns about EchoStar’s (SATS) proposed sales of wireless spectrum to AT&T and SpaceX, citing potential harm to competition in wireless and satellite markets.

Senator Elizabeth Warren and Representative Greg Casar urged the Federal Communications Commission and the Justice Department to closely review the transactions, which together are valued at about $40 billion.

The proposed deals include a $23 billion sale of spectrum to AT&T and a $17 billion sale to SpaceX. The lawmakers said the transactions could further consolidate already concentrated industries.

In a letter, the lawmakers said AT&T’s proposed acquisition threatens to deepen consolidation in the U.S. wireless market. They said SpaceX’s proposed purchase could strengthen SpaceX’s position in the satellite sector.

They asked regulators to conduct a robust review before approving either deal. The FCC and Justice Department did not immediately respond to requests for comment. AT&T, SpaceX, and EchoStar also did not respond.

The lawmakers pointed to continued consolidation among major U.S. wireless carriers, including AT&T, Verizon, and T-Mobile. They said recent transactions have reduced competition and limited consumer choice.

They argued that reduced competition can lead to higher prices and slower improvements in service. The lawmakers noted that U.S. consumers already face some of the highest wireless data prices globally.

FCC Chair Brendan Carr said in September that the EchoStar transactions could be a potential benefit for consumers. His comments followed ongoing regulatory discussions over EchoStar’s spectrum holdings.

The lawmakers cited statements EchoStar previously made to the FCC alleging that SpaceX had attempted to undermine EchoStar’s use of certain spectrum. They said this history raised questions about the proposed transaction.

They also raised concerns about the relationship between SpaceX Chief Executive Elon Musk and FCC leadership. The lawmakers said these circumstances underscore the need for an independent regulatory review.

In June, President Donald Trump encouraged EchoStar and the FCC to reach an agreement regarding the company’s wireless spectrum licenses. EchoStar is the parent company of Dish TV.

Last year, DirecTV terminated its agreement to acquire EchoStar’s satellite television business. The deal collapsed after a failed debt exchange proposal involving Dish TV.