AT&T Inc. said it will acquire certain wireless spectrum licenses from EchoStar Corp. for about $23 billion in cash, marking one of the largest telecom deals of the year as the carrier looks to expand its 5G network capacity.
The announcement triggered a more than 71% surge in EchoStar shares in pre-market trading to $51.25, their highest level since January 2018.
AT&T was higher by 0.4% during pre-market hours.
Deal with EchoStar strengthens AT&T’s spectrum portfolio
The Dallas-based company said the acquisition will add an average of about 50 MHz of low-band and mid-band spectrum to its holdings.
The licenses cover more than 400 markets across the US, including approximately 30 MHz of nationwide 3.45 GHz mid-band spectrum and 20 MHz of 600 MHz low-band spectrum.
AT&T said it intends to deploy the mid-band licenses as quickly as possible once the deal closes, which is expected in mid-2026.
The company will also have the option to lease the spectrum before the sale is completed, enabling faster rollout to U.S. consumers.
“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.
“We’re adding fuel to our winning strategy of investing in valuable wireless and broadband assets to become America’s best connectivity provider.”
EchoStar eyes debt reduction and growth
EchoStar, based in Englewood, Colorado, said the sale will not affect its other businesses, including Dish TV, Sling, and Hughes.
Proceeds will be used to retire debt and fund growth initiatives, according to chief executive Hamid Akhavan.
“We continue to evaluate strategic opportunities for our remaining spectrum portfolio in partnership with the U.S. government and wireless industry participants,” Akhavan said.
The transaction also updates the wholesale network-services agreement between the two companies.
EchoStar will continue to operate as a hybrid mobile-network operator through its Boost Mobile brand, with AT&T serving as its primary network-services partner.
FCC scrutiny and political pressure
The deal follows mounting regulatory scrutiny over EchoStar’s spectrum holdings.
Earlier this year, the Federal Communications Commission informed EchoStar co-founder Charlie Ergen that it would investigate the company’s compliance with federal requirements to build a nationwide 5G network.
In June, former President Donald Trump urged both EchoStar and FCC Chair Brendan Carr to reach an amicable resolution over the fate of the company’s spectrum licenses.
The transaction, EchoStar said, forms part of its broader effort to resolve those regulatory inquiries.
Outlook remains intact
AT&T reaffirmed its 2025 financial guidance following the announcement, projecting adjusted earnings of between $1.97 and $2.07 a share.
The company also said it maintains $20 billion in share repurchase capacity between 2025 and 2027.
The transaction remains subject to regulatory approval and is expected to close by mid-2026.
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