Two Democratic lawmakers on Thursday raised concerns about EchoStar’s deals to sell key spectrum to AT&T and SpaceX for $40 billion, saying it could shrink competition in wireless and satellite markets.
Senator Elizabeth Warren and Representative Greg Casar urged the Federal Communications Commission and Justice Department to closely scrutinize the $23 billion AT&T deal and $17 billion SpaceX deal. “AT&T’s proposed acquisition of spectrum from EchoStar threatens to further consolidate the wireless industry and exacerbate harms to consumers,” the lawmakers wrote. “SpaceX’s proposed acquisition of spectrum from EchoStar may entrench SpaceX’s already dominant position in the satellite market.”
The FCC, Justice Department and the companies did not immediately respond to requests for comment.
The lawmakers noted there has been significant further consolidation in the sector, citing a series of transactions that further strengthen AT&T, Verizon and T-Mobile.
“These deals reduce competition and innovation in the wireless market and drive up costs for consumers. U.S. wireless customers already pay some of the highest wireless phone data prices in the world,” the lawmakers wrote. “As the big three carriers face less competition due to increased consolidation, they have little incentive to lower costs or improve their service to attract customers.”
FCC Chair Brendan Carr told reporters in September the EchoStar deals could be a “potential game changer for the American consumer.”
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