- FCC filings reveal a proposed 3.45 GHz spectrum lease between AT&T and Blue Ridge Wireless
- The deal comes as the FCC reminds multiple 3.45 GHz license holders of looming 2026 deployment deadlines
- AT&T isn’t sharing a lot of details but says it’s always looking for ways to improve the customer experience
It looks like AT&T wants to add even more to its 3.45 GHz spectrum stockpile through a licensing deal with Pennsylvania-based Blue Ridge Wireless.
Some eagle eyes spotted recent filings with the Federal Communications Commission (FCC) where AT&T describes a 3.45 GHz spectrum lease arrangement with Blue Ridge.
Per a post on LinkedIn by Ookla Lead Industry Analyst Mike Dano, AT&T argues that access to the spectrum, which must be approved by the FCC, will “greatly enhance” the quality of the service it offers to its subscribers.
AT&T was the biggest bidder in the 2021 auction of 3.45 GHz airwaves, and it’s in the process of acquiring 3.45 GHz licenses from the second biggest winner, Dish Wireless, now a subsidiary of EchoStar. Thanks to a spectrum management lease agreement, AT&T already is using some of that spectrum at nearly 23,000 cell sites.
AT&T might have a few other prospects for getting access to even more 3.45 GHz spectrum. Shortly before Christmas, the FCC sent letters to multiple 3.45 GHz license holders reminding them of their 2026 buildout requirements and asking for an update on the current status of their deployments.
Blue Ridge was among them. The FCC sent similar letters to Columbia Capital, Grain Capital, Skylake Wireless, N Squared Wireless, Cherry Wireless and Whitewater Wireless.
AT&T isn’t saying a whole lot about the licensing deal with Blue Ridge.
“AT&T is always looking for ways to invest in our business and accelerate growth, including acquiring spectrum. We continually evaluate opportunities to invest and improve customer experience,” an AT&T spokesperson told Fierce.
Other AT&T spectrum transaction in limbo
Last year, AT&T announced the $23 billion purchase of a 30 MHz chunk of EchoStar’s 3.45 GHz spectrum, as well a 20 MHz swath of its 600 MHz airwaves. But that’s getting some pushback from vendors who are angry that EchoStar is denying payment to its 5G network vendors because, according to EchoStar, it was forced by the FCC into the spectrum sales.
EchoStar argues that its contracts with network vendors are private deals that the FCC has no business getting involved in and that they’re for the courts to decide.
In a note for investors today, New Street Research policy analyst Blair Levin said it’s unlikely that FCC Chairman Brendan Carr will hold up EchoStar’s spectrum sales to AT&T – or SpaceX for that matter – even though Carr is sympathetic to tower companies.
“For one thing, he is more sympathetic to the satellite and wireless companies than the tower companies. For a second, to do so would undercut Carr’s rationale for forcing the spectrum sale; that it was in the public interest to put the spectrum into use as quickly as possible,” Levin said. “For a third thing, the tower companies are essentially asking the FCC to resolve a contract dispute. We don’t think Carr will step in to do so, but the courts eventually will.”
Levin said he doesn’t have conviction on how the courts will rule, except to note that in resolving the legal question, there will be factual disputes for which EchoStar Chairman Charlie Ergen will be a witness. He also noted that Ergen will be able to point to statements in private meetings that he’ll characterize as offering him no choice but to sell the spectrum – and there are no tower company witnesses who were in Ergen’s meetings with the FCC.
T-Mobile weighs in
Because AT&T currently doesn’t operate any radios in the 600 MHz band, it’s got a lot of work to do to develop and procure the radios and related technology before it can fully deploy at 600 MHz. Therefore, it’s asking the FCC for certain waivers related to construction and buildout requirements.
Those requests are driving scrutiny from rivals. T-Mobile is on the record opposing EchoStar’s transfer of 3.45 GHz and 600 MHz licenses to AT&T but for different reasons than the infrastructure vendors.
T-Mobile – whose low-band 5G spectrum layer relies on 600 MHz – argues that conditions should be imposed such that AT&T is required to deploy 600 MHz spectrum in rural areas and that coverage is verified through drive tests, similar to what was done as part of the T-Mobile/Sprint merger.
T-Mobile also wants the FCC to cancel and re-auction all of EchoStar's unconstructed 600 MHz licenses “to prevent EchoStar from reaping unjust enrichment from the sale of licenses it failed to construct (despite numerous extensions).”
Rural carriers oppose Array deal
AT&T also acquired 3.45 GHz and 700 MHz spectrum from Array, formerly known as UScellular. The FCC’s Wireless Telecommunications Bureau approved that transfer in early December after AT&T agreed to drop all Diversity, Equity & Inclusion (DEI) policies.
Earlier this week, the Rural Wireless Association (RWA), Open Technology Institute at New America and Benton Institute for Broadband & Society called for a review of the bureau’s decision.
“The bureau’s order is in conflict with established law and is based on numerous erroneous findings with respect to important and material questions of fact,” the groups told the commission. “Accordingly, review of the order by the full commission is warranted.”