AT&T Acquires EchoStar Spectrum Licenses for $23 Billion

AT&T has agreed to acquire EchoStar's spectrum licenses for $23 billion, expanding its wireless and broadband capabilities. The deal will not impact EchoStar's other operations, including Dish TV and Sling. AT&T will provide network services to EchoStar, enabling it to operate as a hybrid mobile network operator. The acquisition bolsters AT&T's spectrum portfolio and enhances customers' 5G and fiber internet experience.

Title: AT&T Acquires EchoStar Spectrum Licenses for $23 Billion, Bolstering 5G and Broadband Capabilities

AT&T Inc. has agreed to acquire certain wireless spectrum licenses from EchoStar Corporation for approximately $23 billion, marking a significant expansion of AT&T's wireless and broadband capabilities. The deal, announced on Tuesday, includes 30 MHz of nationwide 3.45 GHz mid-band spectrum and approximately 20 MHz of nationwide 600 MHz low-band spectrum, covering virtually every market across the U.S. [3]

EchoStar's spectrum sale and hybrid mobile network operator (MNO) agreement with AT&T are part of EchoStar's ongoing efforts to resolve inquiries from the Federal Communications Commission (FCC) [2]. The transaction will enable AT&T to rapidly deploy the purchased spectrum to U.S. consumers across the country. EchoStar will continue to operate as a hybrid MNO, offering subscribers connectivity through Boost Mobile's cloud-native 5G core and AT&T's cell sites.

The acquisition will enhance AT&T's spectrum portfolio and bolster its 5G wireless and home internet experience. AT&T's CEO, John Stankey, stated, "This acquisition bolsters and expands our spectrum portfolio while enhancing customers' 5G wireless and home internet experience in even more markets." [1]

AT&T plans to deploy these mid-band licenses, which are compatible with its 5G network, as soon as possible. The company also expects to expand its fiber broadband network to more than 50 million locations by the end of 2029, while actively working to exit its legacy copper network operations across most of its wireline footprint. The modernization of its 5G wireless network with open technology is expected to be largely completed by 2027 [1].

The deal is expected to close in mid-2026, with AT&T financing the spectrum purchase with cash on hand and incremental debt. The transaction is subject to regulatory approval [3].

EchoStar's other operations, including Dish TV and Sling, will not be impacted by this transaction. The company will use the proceeds from the spectrum sale to retire certain debt obligations and fund its continued operations and growth initiatives [2].

AT&T's shares rose less than 1% on Tuesday, while EchoStar's shares soared 76% at the opening bell. The transaction puts EchoStar on a solid financial path, enhancing its ability to innovate and compete as a hybrid network operator [1].

References:
[1] https://finance.yahoo.com/news/t-snatches-wireless-spectrum-licenses-135631953.html
[2] https://www.morningstar.com/news/pr-newswire/20250826la58961/echostar-announces-spectrum-sale-and-hybrid-mobile-network-operator-mno-agreement-steps-toward-resolving-federal-communications-commissions-fcc-inquiries
[3] https://www.nasdaq.com/articles/att-buy-spectrum-licenses-echostar-23-bln-backs-2025-outlook-sats-shares-surge