Lawmakers raise concerns about Echostar deals to sell wireless spectrum to AT&T, SpaceX

By David Shepardson

WASHINGTON, Dec 18 (Reuters) – 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 forconsumers. U.S. wireless customers already pay some of the highest wireless phone data pricesin 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.”

The lawmakers noted EchoStar told the FCC that SpaceX “has repeatedly tried to undermine EchoStar’s use of (spectrum) so that it can take the spectrum for itself” and raised questions about the relationship of Carr and SpaceX CEO Elon Musk.

“The circumstances around the FCC investigation of EchoStar and the close relationship of Mr.Musk to the Trump Administration and to key Trump Administration officials make itparticularly important that the FCC and DOJ engage in a robust, independent, and impartialreview prior to approving any sale of EchoStar spectrum to SpaceX,” the letter said.

In June, President Donald Trump prodded EchoStar, parent of Dish TV, and Carr to reach a deal over the fate of the company’s wireless spectrum licenses. U.S. satellite TV provider DirecTV terminated its agreement to acquire EchoStar’s satellite television business last year, which includes rival Dish TV, over a failed debt-exchange offer.

(Reporting by David Shepardson in Washington; Editing by Kirsten Donovan)