It’s finally happened: after lots of pressure from the FCC (Federal Communications Commission), EchoStar has agreed (subscription required) to sell its spectrum licenses for $23 billion. EchoStar’s brand — Boost Mobile — will now primarily use the AT&T network, which is the buyer.
The deal isn’t going to be complete until some time next year, but will very likely go through. EchoStar will continue to operate in the U.S. under Boost, but won’t have nearly as much control anymore. Meanwhile, AT&T’s network will see a jump in reliable coverage across the United States.
Are you happy AT&T bought these licenses?
Yes, it's been a long time coming
39.06%
No, this isn't going to lead to anything good
60.94%
Boost Mobile users will still be able to access other networks, but AT&T will remain the default option in most places. AT&T is confident that the deal will help it strengthen its 5G services across the country.
CEO of AT&T — John Stankey — says that regulators shouldn’t consider it alarming that so much wireless spectrum is moving into the ownership of the top three. In his eyes, this move is ultimately a good thing for the end consumer, as more capacity is being put out into the market.
AT&T will be the primary network for Boost Mobile now. | Image credit — PhoneArena
This deal, which has handed over 20 MHz of low-band spectrum and 30 MHz of mid-band spectrum to AT&T, will also likely immediately benefit existing customers of the carrier. Whenever the deal goes through, of course.
There have been multiple reports of extended service outages in some areas over the past couple of months. Users report that the estimated time for service to be restored keeps getting pushed up, and some people have even reported being without coverage for weeks on end. If that is the case, then perhaps this acquisition may help AT&T avoid any such outages in the future. One can hope, I suppose.
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Abdullah loves smartphones, Virtual Reality, and audio gear. Though he covers a wide range of news his favorite is always when he gets to talk about the newest VR venture or when Apple sets the industry ablaze with another phenomenal release.
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