Key points
- AT&T will purchase wireless spectrum licenses from EchoStar for approximately $23 billion.
- This acquisition will bolster AT&T’s 5G and fiber network expansion.
- The licenses cover over 400 U.S. markets, strengthening low-band and mid-band holdings.
- EchoStar will become a hybrid mobile network operator (MNO) using AT&T’s network.
AT&T announced Tuesday a significant investment in its future, agreeing to acquire a substantial portfolio of wireless spectrum licenses from EchoStar for roughly $23 billion. This strategic move underscores AT&T’s commitment to maintaining its competitive edge in the increasingly saturated U.S. wireless market, fueled by the ever-growing demand for high-speed internet access.
The acquisition significantly expands AT&T’s reach, covering more than 400 markets nationwide.
The acquired licenses will primarily enhance AT&T’s low-band and mid-band spectrum holdings, crucial for expanding its 5G network coverage and capacity. This strategic acquisition directly supports AT&T’s ambitious plans to accelerate the build-out of its fiber and 5G infrastructure, ensuring it remains at the forefront of the telecommunications industry.
The deal also includes an expansion of their existing network services agreement, transforming EchoStar into a hybrid mobile network operator (MNO) under the Boost Mobile brand, leveraging AT&T’s network infrastructure.
EchoStar’s stock experienced a dramatic surge of over 40% in premarket trading following the announcement, reflecting the significant value of the acquired assets. AT&T shares also saw a positive market reaction, increasing by 1.5%. This acquisition follows another recent major deal for AT&T: the $5.75 billion purchase of Lumen Technologies’ consumer fiber operations in May.
AT&T affirmed its 2025 financial guidance, indicating confidence in its ability to manage the financial implications of this large-scale acquisition. The company intends to fund the spectrum purchase using a combination of existing cash reserves and additional borrowing.
This substantial investment reinforces AT&T’s long-term vision and commitment to providing advanced communication services to its customers across the United States.
