AT&T cuts controversial policy to seal billion-dollar acquisition | Official Website of Louis Velazquez, entrepreneur, finance guy and tech innovator

AT&T, one of the top phone carriers in the U.S., is eyeing the acquisition of spectrum licenses from a major rival amid heightened competition.

Spectrum licenses are government-issued authorizations that give a company exclusive rights to use specific radio frequency bands for wireless communication, which is vital for improving the quality of 5G mobile networks, broadcasting, and satellite services.

In November last year, AT&T entered into an agreement with regional phone carrier UScellular to acquire a portion of the company’s retained spectrum licenses for over $1 billion. UScellular had previously sold a portion of its spectrum licenses to T-Mobile and Verizon earlier that year.

“This agreement adds a fourth mobile network operator, in addition to T-Mobile, to the list of those whose subscribers will benefit from the sale of our spectrum licenses,” said UScellular CEO Laurent Therivel in a press release last year. “As with the other mobile network operators, we are confident that AT&T can put it to productive use in communities throughout the U.S. Furthermore, the terms of the agreement will ensure that there will be continued, uninterrupted service for UScellular customers in the interim.”

The deal comes at a time when AT&T falls behind its top competitors in terms of consumer satisfaction for postpaid phone plans, as more consumers nationwide value network quality, according to a recent survey from J.D. Power.

Phone carrier consumer satisfaction rates for postpaid phone plans:

The average consumer satisfaction score for postpaid plans under mobile network operators is 593 (on a 1,000-point scale)
T-Mobile ranks the highest with a satisfaction score of 636.
Verizon takes second place with a 583 score.
AT&T falls behind Verizon with a satisfaction score of 573. Source: J.D. Power

“The findings show that value is the most important driver of the overall experience, followed closely by service quality,” said Carl Lepper, senior director of technology, media and telecom at J.D. Power, in a press release.

AT&T cuts DEI to get approval for UScellular deal

On Dec. 3 this year, the deal between AT&T and UScellular was finally approved by the Federal Communications Commission; however, it appears to have come at a major price.

Just before the deal was approved, AT&T sent a letter to FCC Chair Brendan Carr on Dec. 1 informing him that the company had dropped its diversity, equity, and inclusion (DEI) program.

“To bring 5G and fiber to more customers than anyone else, we have realigned our priorities, our budgets, and our personnel, and we are positioning our workforce to meet the connectivity needs of all Americans,” said AT&T in the letter. “As part of this operational focus, we have reviewed our policies and relationships with external groups to ensure that they are aligned with our business priorities.”

AT&T said that the evolving legal landscape has influenced its decision to remove DEI from its workplace culture and practices.

“The legal landscape governing diversity, equity, and inclusion (“DEI”) policies and programs has changed,” said AT&T. “We have closely followed the recent Executive Orders, Supreme Court rulings, and guidance issued by the U.S. Equal Employment Opportunity Commission and have adjusted our employment and business practices to ensure that they comply with all applicable laws and related requirements, including ending DEI-related policies.”

Specifically, AT&T said that the removal of DEI will impact its hiring, training, and career development opportunities.

“We do not and will not use hiring quotas based on race, sex, sexual orientation, or any other protected characteristic,” said AT&T. “Further, consistent with the current law, we removed training related to ‘diversity, equity and inclusion’ as well as any references to it from our internal and external messaging and will ensure that future training is consistent with guidance released by the U.S. Equal Opportunity Commission addressing training that could facilitate discrimination in the workplace.”

The company will also ensure that its employee groups support “equal employment opportunity.” AT&T will also “no longer participate in recognition surveys focused on protected characteristics.”

AT&T has also increased the focus of its supplier program to prioritize local and small businesses, removing demographic-based goals.

“Our procurement practices – including the awarding of contracts and supplier spending – are not based on any demographic-based goals, and we do not require our suppliers to meet any demographic-based goals,” said AT&T.

Additionally, the company said it “discontinued sponsorships that are not aligned to our current business strategy.”

AT&T isn’t the only company that cut DEI this year

The move from AT&T follows Verizon’s decision to scrap its DEI policies in May, as part of its effort to secure FCC approval for its $20 billion acquisition of Frontier Communications.

In July, T-Mobile also removed its DEI policies, and shortly after, the FCC approved its acquisition of internet service provider Metronet, and its deal to acquire several spectrum licenses from UScellular.

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Many companies, such as Walmart, Lowe’s, and Tractor Supply, have either scaled back or eliminated their DEI policies, following the U.S. Supreme Court’s ruling in 2023 to end affirmative action in college admissions, which raised legal questions surrounding DEI programs in workplaces across the country.

More companies, such as McDonald’s, Amazon, and Target, also followed suit in scaling back DEI in early January, shortly after President Donald Trump issued an executive order that dismantled the federal government’s DEI programs.

In the executive order, he claims that the programs enforce “illegal and immoral discrimination.”

Since Trump was reelected as president of the United States in November last year, one in five companies have eliminated their DEI policies, reflecting a growing trend in corporate America, according to a recent survey from Resume.org.

How companies nationwide are scaling back DEI in 2025:

Approximately 57% of companies that have cut DEI report decreases in hiring of one or more underrepresented groups.
Also, 10% of companies that currently have DEI programs reduced their investment, while 16% are likely to eliminate DEI policies by the end of 2025 and 7% expect to do so within the next four years.
Additionally, 47% of companies that scaled back their DEI efforts report a decline in employee morale, and 39% have reduced benefits originally tied to DEI. Source: Resume.org

“Eliminating DEI programs, particularly due to political pressure, is short-sighted and creates long-term risks,” said Kara Dennison, head of career advising at Resume.org, in the survey. “Companies that cut DEI programs are hiring fewer underrepresented employees, leading to reduced innovation, lower performance, and weaker talent pipelines. Many report declining morale and rising incidents of discrimination, signaling damage to culture and psychological safety.”