AT&T is set to purchase $23 billion worth of spectrum licenses from EchoStar, totaling about 50 megahertz (MHz) of nationwide spectrum, the companies announced on Tuesday.
The licenses, which will strengthen AT&T’s low-band and mid-band spectrum holdings, cover 400 markets across the United States. AT&T intends to begin deploying these mid-band licenses, which are compatible with its 5G network, as soon as possible.
The deal is expected to close in mid-2026, subject to certain closing conditions, including regulatory approvals. EchoStar shares surged over 77% on Tuesday after the deal was announced.
The parties have also amended their network services agreement to create a “hybrid mobile network operator” relationship, providing wireless service under the Boost Mobile brand.
While primary connectivity will be provided by AT&T’s towers, Boost Mobile subscribers will continue to have access to the T-Mobile network. Customers will experience no interruptions to service, but elements of Boost Mobile’s radio access network (RAN) will be decommissioned over time.
“This acquisition bolsters and expands our spectrum portfolio while enhancing customers’ 5G wireless and home Internet experience in even more markets,” AT&T chairman and CEO John Stankey said in a Tuesday statement. “No one brings wireless and fiber internet to more places or does it better than AT&T — and we do it with the industry’s first and only guarantee for both wireless and fiber. We’re adding fuel to our winning strategy of investing in valuable wireless and broadband assets to become America’s best connectivity provider.”
The acquisition comes two months after President Donald Trump urged Federal Communications Commission chair Brendan Carr and EchoStar to reach an “amicable” deal over its wireless licenses.
In May, Carr sent a letter to EchoStar revealing that it had launched a review into the company’s compliance with certain federal obligations to provide 5G service in the U.S. It followed complaints from Elon Musk’s SpaceX that EchoStar was leaving “valuable mid-band spectrum chronically underused,” and that the FCC should take steps to let “new satellite entrants” use it.
“I’m enormously proud of the EchoStar team for deploying the world’s first Open RAN network in record time, despite industry skepticism and in the face of the many challenges raised by the COVID-19 pandemic,” EchoStar chairman/co-founder Charlie Ergen added. “EchoStar and Boost Mobile have met all of the FCC’s network buildout milestones. However, this spectrum sale to AT&T and hybrid MNO agreement are critical steps toward resolving the FCC’s spectrum utilization concerns.”
EchoStar president and CEO Hamid Akhavan said that the proceeds of the deal would be used to retire certain debt obligations and fund the company’s continued operations and growth initiatives.
“This transaction puts our business on a solid financial path, further facilitating EchoStar’s long-term success, and enhancing our ability to innovate and compete as a hybrid network operator,” he said. “We continue to evaluate strategic opportunities for our remaining spectrum portfolio in partnership with the U.S. government and wireless industry participants.”
The operations of EchoStar’s other businesses, including DISH TV, Sling and Hughes, will not be impacted by this transaction.
