AT&T to Acquire Spectrum Licenses from EchoStar
WASHINGTON – AT&T announced on Tuesday plans to acquire vital wireless spectrum licenses from EchoStar for around $23 billion. This move is part of AT&T’s strategy to enhance its network amid a competitive telecom landscape.
Back in June, President Trump encouraged discussions between EchoStar, which is the parent company of Dish TV, and Federal Communications Commission (FCC) Chair Brendan Carr about the company’s wireless spectrum licenses.
This acquisition represents yet another significant investment by AT&T aimed at fast-tracking its fiber and 5G network developments, especially as the wireless market reaches saturation and internet demand continues to climb.
After the announcement, EchoStar’s stock saw a surge of over 40% in premarket trading, while AT&T’s shares increased by 1.5%.
Earlier this year, the FCC had raised questions regarding EchoStar’s compliance with obligations to provide 5G services in the U.S., particularly concerning its buildout timelines and mobile-satellite capabilities.
On June 12, Trump met with EchoStar Chair Charlie Ergen and later connected with Carr during the discussions. EchoStar had been aiming to protect its spectrum licenses from potential revocation by the FCC.
EchoStar stated that the arrangement with AT&T is part of its broader efforts to address the FCC’s inquiries.
“This transaction positions our company for robust financial growth, enabling EchoStar to pursue long-term success and enhancing our capability to compete as a hybrid network provider,” noted EchoStar CEO Hamid Akhavan. He also mentioned that the company will keep exploring strategic options for its remaining spectrum.
In a related development, DirecTV, a U.S. satellite TV provider, ended its plan to acquire EchoStar’s satellite television operations last year after a failed debt-exchange proposal.
In May, AT&T secured a deal to buy Lumen Technologies’ consumer fiber operations for $5.75 billion, further expanding its assets.
AT&T’s bundled offerings that merge high-speed fiber with mobile services have proven popular with consumers, especially as competitors like T-Mobile and Verizon ramp up their promotional efforts.
During the second quarter, AT&T added 401,000 net monthly wireless subscribers.
The acquired licenses span over 400 markets in the U.S. and will enhance AT&T’s low-band and mid-band spectrum holdings. The companies also agreed to expand their network services agreement, allowing EchoStar to function as a hybrid mobile operator under the Boost Mobile brand, with AT&T serving as the primary network partner.
AT&T reaffirmed its financial outlook for 2025 and indicated it plans to finance the spectrum purchase using cash reserves along with additional borrowings.
