A major telecommunications deal that has AT&T paying $23 billion for EchoStar's wireless spectrum is quietly reshaping the landscape of mobile phone service, potentially impacting millions of consumers with higher cellphone bills.
This spectrum — essentially the invisible radio waves that carry cellphone calls, texts, and data — represents a key handover that could strengthen the hold of the nation's three major carriers — AT&T, Verizon, and T-Mobile — prompting opposition from those who want more competition and cheaper cellphone rates.
Critics would like the spectrum to be shared with other providers, including major cable operators who offer cellphone service at substantially discounted rates compared with the top three phone carriers.
In December, Sen. Elizabeth Warren, D-Mass., and Rep. Greg Casar, D-Texas, fired off a letter to the Federal Communications Commission and the Justice Department urging regulators to block the deal due to risks to competition.
"The AT&T deal — worth $23 billion — will effectively strengthen the market power of the three major wireless carriers in the U.S., and 'close the books' on the possibility of the emergence of an additional major competitor," they wrote.
Wireless spectrum is a finite natural resource — like a limited stretch of prime real estate in the sky — belonging to the nation's citizenry.
Previously, the FCC and DOJ under Republican and Democrat administrations have been aggressive in promoting the idea of diverse owners for the public spectrum, requiring more competition by phone carriers, and presumably lower cellphone bills for consumers.
Such was the thinking over a decade ago when federal regulators required the sale of some spectrum assets to Dish Network, which later merged into EchoStar.
The government's aim was ambitious: to help EchoStar build a fourth independent national cellphone carrier to compete with the Big Three.
Soon after getting its spectrum, EchoStar launched its Boost Mobile brand to challenge the phone giants and keep costs low for consumers.
In its pursuit of becoming the nation's fourth major carrier, EchoStar accumulated valuable holdings of spectrum — all intended to support robust network growth.
But building a nationwide wireless setup proved challenging, as EchoStar grappled with huge debt, construction delays, and costs running into tens of billions of dollars for towers and technology.
By 2025, the company lagged far behind its promised build-out, putting its federal licenses at risk.
Last year, the FCC pushed EchoStar into divesting itself of its nationwide spectrum.
EchoStar complied, and its first big deal was the sale of its spectrum with AT&T in a deal announced last August. As part of the plan, Boost Mobile's roughly 7 million customers transitioned to mostly using AT&T's network, transforming EchoStar into a reseller of service.
The $23 billion deal awaits final regulatory approval and is set to close by mid-2026, providing AT&T with a significant boost to its 5G capabilities and enabling faster, more reliable service for more people.
But now consumer groups and lawmakers are crying foul, suggesting massive spectrum control by the three big carriers will increase costs.
Now a consortium of major cable operators want access to AT&T's new spectrum so they can offer low-cost cellphone service bundled with their broadband and TV offerings.
Charter, Comcast, and Altice (Optimum) are among those that could benefit if the spectrum were opened up.
With access to the AT&T spectrum, these cable firms could operate as mobile virtual network operators, or MVNOs, renting access from the Big Three's networks without building their own cell towers.
In turn, they could sell branded phone services at lower costs bundled with home internet and other extras.
For instance, Comcast's Xfinity Mobile primarily relies on Verizon's infrastructure, supplemented by its own network of over 23 million Wi-Fi hotspots, an approach that has proven successful as cable MVNOs have attracted millions of customers recently.
In early 2025, cable operators captured about half of U.S. mobile subscriber growth, positioning themselves as genuine challengers that have shaken up the market by adding over 16 million lines in the past five years.
But some contend that the AT&T-EchoStar sale as it stands — with no requirements to share access with cable operators — further reduces competition and will drive up consumer cellphone bills.
According to a source close to the DOJ, AT&T is strongly rebuffing any idea it should share its spectrum with third parties, including cable operators.
Public interest groups Public Knowledge and the Open Technology Institute submitted a formal response to the FCC about the deal, suggesting AT&T be required to offer MVNO deals to cable firms as it does with regional firms.
Without such protections, cable companies could see their competitive edge erode, particularly if the major phone carriers refuse new wholesale agreements.
John Bergmayer, legal director at Public Knowledge, told Newsmax his organization does not explicitly object to the deal, noting AT&T is "the spectrum-poorest of the three national carriers, and bringing it closer to parity is better than letting one of the others pull further ahead. The deal also keeps Boost Mobile operating rather than simply shutting it down."
He added, though, that "parity among oligopolists is not competition" and that with the AT&T deal "no available spectrum exists to support a new entrant" in the cellphone business.
The implications are significant for everyday Americans, who already face some of the highest cellphone bills among developed countries.
Recent data shows average U.S. households paying about $96 monthly — or $1,152 annually — and some individual plans reaching as high as $141 per month.
In the United Kingdom, for example, a basic plan with unlimited calls and at least 10GB of data costs just $16.90 monthly, a disparity partly stemming from the concentrated U.S. market where spectrum is controlled by only three major players today.
Increasingly, cable MVNOs are providing some relief by offering substantial savings.
For a household with two unlimited lines, Xfinity Mobile or Spectrum Mobile might cost $960 annually, compared to $2,160 for Verizon, $1,824 for AT&T, or $1,920 for T-Mobile.
Features like Comcast's PowerBoost have elevated median speeds well above speeds of the Big Three while keeping costs down, a trend recognized by industry experts and the FCC as cable operators have become a growing disruptive force since the T-Mobile-Sprint merger.
Neither AT&T nor T-Mobile responded to a request from Newsmax to comment for this report. Verizon declined to comment, citing a quiet period related to an FCC spectrum auction in June.
In January, Verizon said, without offering details, that it "modernized" its MVNO agreement with both Charter and Comcast, "supporting continued profitable growth for all three parties."
Supporters of the AT&T deal, including FCC Chairman Brendan Carr, believe the spectrum assignment will deploy unused frequencies and quickly benefit consumers through improved networks.
Carr and others contend that competition extends beyond the Big Three national carriers to include MVNOs, satellite services like SpaceX — which acquired other EchoStar spectrum — and unlicensed Wi-Fi.
In the past, AT&T has described MVNO arrangements as "win-win," highlighting past deals that increase revenue and broaden access.
Paul Bond has been a journalist for three decades covering media, entertainment, finance, and politics.
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