AT&T to Acquire EchoStar Spectrum Licenses for $23 Billion.

AT&T plans to acquire $23 billion worth of spectrum licenses from EchoStar, adding 50 MHz of low-band and mid-band spectrum to its holdings. This acquisition will cover virtually every market in the US and strengthen AT&T's position in advanced connectivity across 5G and fiber. The deal is expected to improve the company's long-term growth by accelerating its ability to add converged subscribers with both 5G wireless and home internet services in more places.

AT&T has announced plans to acquire approximately $23 billion worth of spectrum licenses from EchoStar, adding 50 MHz of low-band and mid-band spectrum to its holdings. The transaction, subject to regulatory approval, will cover virtually every market in the U.S., significantly strengthening AT&T's position in advanced connectivity across 5G and fiber networks [1].

The acquisition includes approximately 30 MHz of nationwide 3.45 GHz mid-band spectrum and approximately 20 MHz of nationwide 600 MHz low-band spectrum. These licenses are expected to be deployed rapidly, with AT&T intending to begin deployment as soon as possible. The mid-band licenses are compatible with AT&T's 5G network, while the low-band licenses will enhance 5G coverage, reliability, and speeds [2].

The deal is anticipated to improve AT&T's long-term growth by accelerating its ability to add converged subscribers with both 5G wireless and home internet services in more places. AT&T expects to support the deployment of these licenses within its multi-year capital investment guidance, while maintaining its fiber expansion targets. The transaction is expected to close in mid-2026, subject to certain closing conditions, including regulatory approvals [2].

EchoStar will continue to operate as a hybrid mobile network operator (MNO) through its Boost Mobile brand, leveraging AT&T's leading nationwide network. Boost Mobile subscribers will experience no interruptions to service, with primary connectivity provided by AT&T's towers and access to the T-Mobile network. The transaction will decommission certain elements of Boost Mobile's radio access network (RAN) over time [1].

The spectrum purchase transaction will be financed with cash on hand and incremental borrowings. Following the closing of the transaction, AT&T expects its net debt-to-adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) ratio to remain at a level consistent with its long-term net leverage target [2].

AT&T reiterates its full-year 2025 financial guidance and capital return plans, including an expected $20 billion of share repurchase capacity during 2025-2027. The acquisition will position AT&T to maintain long-term leadership in advanced, high-performance connectivity, enabling it to meet critical connectivity needs for consumers, businesses, and first responders [2].

References:
[1] https://www.prnewswire.com/news-releases/echostar-announces-spectrum-sale-and-hybrid-mobile-network-operator-mno-agreement-steps-toward-resolving-federal-communications-commissions-fcc-inquiries-302538317.html
[2] https://www.prnewswire.com/news-releases/att-to-acquire-spectrum-licenses-from-echostar-302538800.html