EchoStar sells $23 billion of spectrum, Boost Mobile to remain a hybrid MNO.

EchoStar has agreed to sell its 3.45 GHz and 600 MHz spectrum licenses to AT&T for approximately $23 billion. The deal includes a hybrid mobile network operator (MNO) agreement, allowing Boost Mobile to continue competing in the US wireless market using AT&T's cell sites and EchoStar's cloud-native 5G core. The transaction is subject to regulatory approval.

AT&T (NYSE: T) has announced a significant acquisition of spectrum licenses from EchoStar (NASDAQ: SATS), totaling approximately $23 billion. The deal includes 50 MHz of nationwide spectrum, comprising 30 MHz of 3.45 GHz mid-band spectrum and 20 MHz of 600 MHz low-band spectrum, covering over 400 markets across the U.S. [1]

The transaction, expected to close in mid-2026, aims to enhance AT&T's 5G wireless and home internet capabilities. Additionally, AT&T and EchoStar have agreed to expand their wholesale network services agreement, allowing EchoStar to operate as a hybrid mobile network operator under the Boost Mobile brand. [1]

The acquisition strategically strengthens AT&T's 5G position, supporting convergence growth without disrupting financial targets. AT&T maintains its 2025 financial guidance and plans for $20 billion in share repurchases during 2025-2027. The company expects its net debt-to-adjusted EBITDA ratio to temporarily increase to 3x, with plans to return to its 2.5x target within approximately 3 years. [1]

EchoStar, on the other hand, will use the proceeds from the sale to retire debt and fund operations and growth initiatives. The transaction addresses the FCC's spectrum utilization concerns while transforming Boost Mobile into a hybrid network operator with improved financial outlook. [2]

The hybrid MNO structure allows Boost Mobile to maintain its cloud-native 5G core while utilizing AT&T's radio access network. This arrangement reduces network maintenance costs and preserves T-Mobile network access as a redundancy layer, ensuring service continuity for customers. [2]

The transaction is subject to regulatory approval and is expected to close after all required conditions are met. The operations of EchoStar's other businesses, including DISH TV, Sling, and Hughes, will not be impacted by this transaction. [3]

References:
[1] https://www.stocktitan.net/news/T/at-t-to-acquire-spectrum-licenses-from-echo-bpryvz9jm3sp.html
[2] https://www.stocktitan.net/news/SATS/echo-star-announces-spectrum-sale-and-hybrid-mobile-network-operator-gvn35d2jxbz5.html
[3] 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