Now that EchoStar has sold all of its spectrum to AT&T, Boost Mobile no longer has the opportunity to be the nation's fourth facilities-based carrier. It will stay in the wireless game, but will be using AT&T's spectrum and the airwaves of others. Speaking of AT&T, it will get 30MHz of mid-band spectrum (3.45GHz) in the deal, which should surely help its subscribers as AT&T should be able to improve its 5G coverage in certain areas. Also involved is 20MHz of low-band airwaves (600MHz) that will be heading to AT&T when the deal closes next year. The spectrum licenses cover 400 markets in the U.S.
With one deal, EchoStar gets the FCC and Chairman Carr off its back
This might have been the best way for EchoStar/Dish Network to end its dreams of joining Verizon, T-Mobile, and AT&T to keep the U.S. at four majors. That was also the goal of the FCC, which was hoping to keep competition alive for the sake of American consumers. The arranged marriage between Dish Network and Boost Mobile was the big arrangement that the FCC wanted to see before it allowed T-Mobile to swallow Sprint for $26 billion.
EchoStar Chairman Charles Ergen. | Image credit-Dish Network
EchoStar Chairman Charles Ergen should now have FCC Chairman Brendan Carr off his back. Carr had recently gone after EchoStar by threatening to reconsider the extended time the FCC had given Dish Network to meet its network coverage testing. He also accused EchoStar, which had purchased Dish Network on the last day of 2023, of hoarding 2GHz spectrum when SpaceX coveted the airwaves for its direct-to-cell satellite service that will allow users to have an LTE connection for their smartphones anywhere they can see the sky.
Ergen made note of the FCC battle in his statement following the announcement of the spectrum deal with AT&T. He said, "EchoStar and Boost Mobile have met all of the FCC's network build-out milestones. However, this spectrum sale to AT&T and a hybrid MNO agreement are critical steps toward resolving the FCC's spectrum utilization concerns."
Did the FCC cajole EchoStar into making this deal?
Yes. Chairman Carr forced EchoStar to sell its spectrum.
25%
No. EchoStar was not in a good position financially.
75%
I have no opinion.
0%
Just days before the deal was announced, we told you that by all indications, it appeared that FCC Chairman Carr wanted EchoStar to sell its spectrum and leave the wireless industry. The FCC is not getting everything it wanted. Losing its spectrum doesn't necessarily mean that Boost Mobile is giving up on the mobile phone business completely. It will be a hybrid MNO or Mobile Network Operator relying on AT&T's network through a wholesale deal that was part of the spectrum sale.
Even though the radio access network (RAN) built by EchoStar will be taken offline and decommissioned, Boost will keep its cloud-native 5G core. With the core as the brains of its network, Boost will still be able to offer unique services and features to its customers.
Boost will operate as an MNO
With the sale, Boost will no longer use its own cell towers and will rely on those owned by AT&T. Boost's core network will now connect to AT&T's nationwide network. If you're a Boost subscriber and make a call or use data, your phone will connect with an AT&T cell tower, which then will communicate with Boost's core network.
EchoStar COO John Swieringa wrote on LinkedIn, "This strategic move allows us to continue serving Boost Mobile customers while taking important steps to both resolve the FCC’s spectrum utilization concerns and place EchoStar on more stable financial ground. With this news, we will continue to compete in the U.S. wireless market as a hybrid MNO, offering our customers connectivity through Boost Mobile’s cloud-native 5G core and AT&T’s cell sites."
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AT&T paid $23 billion for the spectrum from EchoStar, and the deal awaits approval from the FCC and the DOJ. Personally, I don't expect any issues with the deal getting FCC approval, considering that agency Chairman Brendan Carr has reportedly been trying to get EchoStar to sell its spectrum.
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