AT&T just announced it has taken another step towards expanding its coverage network. The phone and internet service provider purchased approximately 30 MHz of nationwide 3.45 GHz mid-band spectrum and approximately 20 MHz of nationwide 600 MHz low-band spectrum from EchoStar.
The price? Approximately $23 billion in an all-cash transaction. According to the press release, these licenses cover over 400 markets in total across the U.S. The transaction is expected to close in mid-2026 and is subject to certain closing conditions, including regulatory approvals.
AT&T and EchoStar benefit from this in their own ways
EchoStar, best known as the owner of Dish Network and Boost Mobile, will operate as a hybrid mobile network operator (MNO) under Boost Mobile. This means they will use their own towers as well as some of AT&T’s towers to enhance their coverage. EchoStar was nearly purchased by DirecTV last year, but the deal fell through due to a failed debt-exchange offer.
Most notably, this transaction appears to have benefited EchoStar’s reputation more than AT&T’s, at least as far as the stock market is concerned. Shares of EchoStar jumped more than 75% in midday, while AT&T shares fell by almost 2%.
“This acquisition bolsters and expands our spectrum portfolio while enhancing customers’ 5G wireless and home internet experience in even more markets,” said John Stankey, Chairman and CEO, AT&T. “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.”
What spurred this deal?
Back in June, the US Government urged EchoStar to reach a deal with the FCC over its spectrum licenses. The FCC started an inquiry into the provider’s 5G deployments, citing concerns that it may not have met its obligations to build out a 5G network.
As a result of this investigation, EchoStar reportedly missed around $500 million in interest payments, citing “uncertainty.” This deal with AT&T may be EchoStar’s solution to that legal trouble.
What’s next
It’s hard to pick out exactly who the winner is in this $23 billion deal.
On one hand, AT&T is further expanding its nationwide coverage, which in turn may attract more customers and earn it more money. Then again, their 2% stock drop may show that the company’s investors are not so fond of this partnership.
On the other hand, EchoStar now has a big-name business partner, resolved its beef with the FCC, raked in a pretty penny, and saw a massive 75% jump in its stock. Then again, rumors are floating around that EchoStar may be selling Dish and Boost Mobile at some point in the future. If that comes to pass, there’s no certainty that AT&T will retain the spectrum licenses it just purchased.
Anyone who’s been paying attention since the T-Mobile and Sprint merger are likely aware of the fact that Dish never really got anything close to becoming the “fourth” carrier like we were all told, so these developments are hardly a surprise.
It’s anyone’s guess, and as much as we’d like to say for sure what will happen, we’re not fortune tellers. If we were, we would have benefited from that stock jump too.
