The Federal Communications Commission (FCC) has approved AT&T’s $1.02 billion acquisition of wireless spectrum licenses from UScellular, a move aimed at expanding network coverage, capacity, and performance across the United States.

The decision comes after AT&T confirmed it would end all diversity, equity, and inclusion (DEI) programs, a condition the FCC has increasingly attached to telecom transactions since President Donald Trump returned to office.

Details of the AT&T–UScellular Spectrum Deal

The deal allows AT&T to acquire select spectrum assets from UScellular, enhancing its wireless infrastructure and potentially improving customer experience in both urban and rural areas.

“This transaction will enhance AT&T’s network coverage, capacity, and performance, resulting in a better customer experience,” the FCC stated.

AT&T officially communicated in a letter to the FCC that the company “does not and will not have any roles focused on DEI”, ensuring compliance with federal regulatory expectations tied to the approval.

Industry and Public Reaction

The Rural Wireless Association (RWA) expressed opposition to the transaction, citing concerns that continued consolidation in the telecom sector harms competition and public interest, particularly for residents and travelers in rural regions.

“This deal will likely lead to increased rates and roaming difficulties,” the RWA warned.

Despite these concerns, AT&T maintains that the acquisition will strengthen its network and support broader connectivity goals.

Context: DEI Programs and FCC Approval Trends

The FCC under Chairman Brendan Carr, a Republican appointed by Trump, has required several telecom companies to terminate DEI programs to secure regulatory approval for mergers and acquisitions.

• In July 2025, T-Mobile US ended DEI initiatives while seeking approval for a $4.4 billion deal to acquire much of UScellular’s operations, including customers, stores, and 30% of spectrum assets.
• Earlier in May, the FCC approved Verizon Communications’ $20 billion acquisition of Frontier Communications after Verizon agreed to terminate its DEI programs.

This trend follows executive orders and policy directives from the Trump administration aimed at reducing government and private-sector involvement in DEI initiatives. FCC oversight has increasingly scrutinized corporate DEI programs as part of merger and acquisition evaluations.

Strategic Implications for AT&T

The UScellular spectrum acquisition positions AT&T to expand its 5G network, strengthen rural coverage, and enhance overall service quality. By acquiring these licenses, AT&T consolidates its spectrum holdings, which could provide a competitive edge against rivals like Verizon and T-Mobile in both urban and underserved regions.

However, industry observers warn that consolidation could also reduce competition in some markets, particularly in rural areas where fewer carriers operate, potentially affecting pricing and service flexibility.