Consumer Groups, Rural Carriers Oppose AT&T-UScellular Spectrum Sale

WASHINGTON, May 1, 2025 – Consumer advocates and rural wireless carriers are asking federal regulators to block a $1 billion sale of airwaves to AT&T by UScellular. The cable industry also raised concerns.

The carriers announced the deal, which would see AT&T grab all UScellular’s 3.45 GigaHertz holdings and much of its 700 MHz spectrum, in November. UScellular is in the process of being acquired by T-Mobile and moved after announcing the deal to sell chunks of its remaining spectrum to AT&T and Verizon.

The AT&T deal would put the company in some markets above the Federal Communications Commission’s 40 megahertz aggregation limit for the 3.45 GHz band, which the companies are asking the FCC to waive. The agency set up the cap when it auctioned the airwaves to promote competition. The cap expires in January of next year.

“The reason for the cap and screen as described by the Commission itself is to prevent exactly what AT&T is seeking to do through its waiver request – to aggregate concentrated spectrum holdings in the 3.45GHz band to halt competition,” the consumer groups wrote in an April 25 petition to deny the sale. The filing was joined by Public Knowledge, New America’s Open Technology Institute, the Benton Institute for Broadband & Society, and the Communications Workers of America.

The groups urged the agency to consolidate the UScellular spectrum deal with other 3.45 GHz purchases for which AT&T is also seeking a waiver of the cap in certain areas. NCTA, the cable industry trade group, and the Rural Wireless Association made similar requests in separate filings.

“The proposed transaction will not cause an aggregation of spectrum that would pose an anticompetitive risk,” AT&T and UScellular wrote in waiver requests as part of their transaction. “The transaction will enhance competition by enabling AT&T to strengthen its competitive offerings, thus enhancing – and not reducing – overall competition in the affected areas.”

The consumer groups and RWA also urged the FCC to tack on certain conditions if they did approve the deal, including a mobile phone unlocking requirement like the one the agency has an open proceeding on and measures preventing layoffs or price increases.

“The risk of competitive harm to consumers from likely rate increases in relevant markets is too great to ignore,” RWA wrote.

AT&T defended the public interest impact of the deal, a major consideration of the FCC review.

“The acquisition of the 3.45 GHz and 700 MHz spectrum here will allow AT&T to increase its system capacity to enhance existing services and facilitate the provision of additional products and services in the affected markets, thereby serving the public interest,” AT&T and UScellular wrote in waiver requests. “The transaction will result in more customers receiving faster speeds as it will enhance AT&T’s 5G network capacity in over 100 markets, supporting the company’s commitment to providing a reliable, best-in-class experience.”