AT&T Inc. has announced a significant strategic move, agreeing to acquire wireless spectrum licenses from EchoStar Corp. for approximately $23 billion in an all-cash transaction.
This pivotal acquisition, expected to finalize by mid-2026 pending regulatory approvals, will infuse AT&T's network with approximately 50 megahertz of nationwide spectrum, primarily in the valuable low- and mid-band frequencies, covering over 400 U.S. markets. The deal is poised to dramatically enhance AT&T's network capacity, accelerating the deployment of advanced 5G services and improving its home internet offerings. This move is a cornerstone of AT&T's strategy to seamlessly integrate its fiber and wireless services, creating comprehensive connectivity solutions for consumers and businesses alike.
The acquired spectrum, including nearly 30 MHz of 3.45 GHz mid-band and 20 MHz of 600 MHz low-band frequencies, is crucial for delivering the enhanced coverage, reliability, and faster speeds that define next-generation wireless connectivity. AT&T anticipates beginning the deployment of these mid-band licenses as soon as possible, aligning with its multi-year capital investment guidance.
For EchoStar, this transaction provides a substantial financial injection, estimated to be around $23 billion, which will aid in managing its debt obligations and addressing operational challenges. The sale also proactively addresses potential scrutiny from the Federal Communications Commission (FCC) regarding spectrum build-out requirements, as EchoStar had faced pressure to utilize its acquired airwaves. EchoStar's stock saw a notable surge following the announcement, with reports indicating an increase of 74-80%, reflecting positive market sentiment toward the deal's strategic value for the company.
This acquisition also includes a hybrid Mobile Network Operator (MNO) agreement, allowing EchoStar's Boost Mobile brand to continue operating using AT&T's network infrastructure, thus ensuring service continuity for its approximately 10 million subscribers. This strategic spectrum acquisition by AT&T is a significant development in the telecommunications landscape. It not only bolsters AT&T's competitive position by expanding its 5G and fiber capabilities but also reflects a broader industry trend of spectrum consolidation. The mid-band spectrum, in particular, is recognized for offering an optimal balance of coverage and capacity, essential for robust 5G performance, while low-band spectrum ensures broader reach, especially in rural areas. This move by AT&T underscores a commitment to long-term growth and leadership in providing advanced connectivity solutions across the nation, aiming to meet the escalating data demands of modern applications and services. The company has reiterated its full-year 2025 financial guidance and capital return plans, including an expected $20 billion in share repurchase capacity between 2025 and 2027, signaling confidence in the accretive potential of this investment.