AT&T Secures Valuable Spectrum Licenses for $23 Billion

AT&T has acquired EchoStar's spectrum licenses for $23 billion, gaining 50 MHz of low/mid-band spectrum. This deal enables AT&T to expand its wireless network and improve its 5G capabilities, while also avoiding competition with other major companies. The acquisition strengthens AT&T's position in the wireless industry and provides the company with a significant advantage in terms of spectrum holdings.

AT&T has announced the acquisition of certain wireless spectrum licenses from Englewood-based EchoStar for $23 billion. This significant deal will expand AT&T’s low- and mid-band coverage networks, bolstering its 5G capabilities and enhancing its wireless and home internet services [1].

The spectrum licenses cover virtually every U.S. market, totaling more than 400 locations. AT&T plans to deploy these licenses as soon as possible to attract more home internet subscribers and meet its growth goals. The deal also strengthens the long-term services agreement between AT&T and EchoStar, enabling EchoStar to operate as a hybrid mobile network operator under its Boost Mobile brand, with AT&T serving as the primary network services partner [1].

Shares of EchoStar soared 76% at the opening bell following the announcement. AT&T CEO John Stankey commented, "This acquisition bolsters and expands our spectrum portfolio while enhancing customers’ 5G wireless and home internet experience in even more markets. We’re adding fuel to our winning strategy of investing in valuable wireless and broadband assets to become America’s best connectivity provider" [1].

The acquisition includes approximately 20 MHz of nationwide 600 MHz low-band spectrum and about 30 MHz of nationwide 3.45 GHz mid-band spectrum, significantly increasing AT&T’s spectrum holdings. This will expand its presence across 400 markets and bolster its 5G capabilities, closing the competitive gap with T-Mobile US and Verizon Communications [2].

AT&T’s strategy aligns with its converged connectivity push, aiming to meet the critical connectivity needs of consumers, small businesses, and first responders. The enhanced network infrastructure will support highly demanding AI applications and IoT devices, empowering AT&T to accelerate the expansion of its fixed wireless services, AT&T Internet Air [2].

The acquisition will increase AT&T’s debt-to-adjusted EBITDA ratio to the 3x range, but the company expects to return to its long-term leverage target of 2.5x within three years. AT&T’s full-year 2025 guidance remains unchanged, but the deal will impact its financial metrics [2].

AT&T’s stock rose less than 1% following the announcement, indicating a balanced market reaction. The company’s price/earnings ratio stands at 13.06 forward earnings, lower than the industry’s 13.63 but above its mean of 12.09. Earnings estimates for 2025 and 2026 have moved upward for the past 60 days, reflecting investor optimism [2].

References:
[1] https://www.denverpost.com/2025/08/26/att-echostar-wireless-spectrum-licenses/
[2] https://www.tradingview.com/news/zacks:29fb0d91e094b:0-at-t-to-acquire-echostar-s-spectrum-licenses-growth-catalyst-or-risk/