AT&T leases 3.45 GHz spectrum in 25 markets to boost capacity

Securing additional midband depth through N Squared allows AT&T to densify its 5G footprint in specific high-growth markets where existing capacity may be constrained. By petitioning the FCC to double power limits to 2 Watts, the carrier is specifically positioning this spectrum to support more competitive fixed wireless access products like Internet Air. This regulatory alignment with C-band standards would improve signal penetration and reliability for in-home broadband services, directly challenging cable incumbents. The industry should monitor the FCC's response to the power limit petition, as a favorable ruling would significantly enhance the utility of the entire 3GPP Band 77 ecosystem for mobile and fixed operators alike.

N Squared has emerged as a key spectrum intermediary in the 3.45 GHz band, positioning itself as a wholesale supplier to carriers seeking midband depth without the cost of auction acquisitions. The company acquired its 3.45 GHz holdings during the FCC's Auction 110 in 2022, paying approximately $1.2 billion for 20 MHz blocks across multiple markets. N Squared's business model centers on leasing spectrum to major carriers rather than building its own network, a strategy that mirrors how other spectrum-holding entities have monetized assets in the post-auction era. AT&T's 25-market lease request represents one of the largest single deployments of N Squared's holdings to date, signaling that the carrier sees specific capacity gaps where organic spectrum is insufficient. The FCC's stance on power limits in the 3.45 GHz band carries significant implications for fixed wireless economics. Current rules cap device power at 1 Watt, which constrains signal reach and indoor penetration compared to the C-band (3.7 GHz), where the FCC already permits 2 Watts. AT&T's petition to raise the 3.45 GHz power limit to 2 Watts would align the band with C-band technical standards, a move that could make the spectrum materially more useful for fixed wireless access deployments like Internet Air. The FCC has historically been receptive to petitions that harmonize technical rules across adjacent midband frequencies, though the process typically takes 12 to 18 months from filing to final order. EchoStar, which holds significant 3.45 GHz spectrum from its Dish Network heritage, has also engaged with the FCC on technical rule modifications for the band, though its strategy has focused more on potential sales than operational deployment. The competitive dynamics of fixed wireless access are intensifying as carriers race to close the broadband gap. T-Mobile's Home Internet service surpassed 7 million subscribers by mid-2025, making it the fastest-growing home broadband product in U.S. history, while Verizon's fixed wireless offering has also crossed the 4 million mark. AT&T's Internet Air product has trailed both rivals in subscriber counts, which explains the urgency behind securing additional midband capacity and pushing for higher power limits. The 3.45 GHz band sits between the C-band and the 2.5 GHz spectrum that T-Mobile uses for its fixed wireless service, and analysts have noted that power limit parity with C-band would make 3.45 GHz competitive for in-home broadband delivery. For streaming platforms, the downstream effect is straightforward: more competitive fixed wireless means more broadband households capable of supporting high-bitrate video services without data caps constraining usage.