AT&T to Buy $23 Billion in Wireless Spectrum Licenses from EchoStar to Strengthen 5G Network
AT&T makes major investment in wireless spectrum
AT&T announced on Tuesday that it will acquire key wireless spectrum licenses from EchoStar in a $23 billion deal, a move aimed at expanding its 5G and fiber network in an increasingly competitive U.S. telecom market.
The acquisition comes as demand for high-speed internet and mobile data continues to surge, with AT&T looking to secure more spectrum to keep pace with rivals like Verizon and T-Mobile.
Trump’s role in brokering a deal
EchoStar, the parent company of satellite communications and Dish TV, had faced regulatory pressure over its spectrum licenses. In June, former President Donald Trump urged both EchoStar and Federal Communications Commission (FCC) Chair Brendan Carr to work toward an agreement that would protect the company’s spectrum assets from possible revocation.
The FCC had been investigating EchoStar’s compliance with 5G buildout obligations, questioning whether the company had met service requirements. EchoStar executives met with Trump and FCC officials earlier this summer, leading to negotiations that set the stage for this deal with AT&T.
Market reaction and financial outlook
Following the announcement, EchoStar’s shares surged more than 40% in premarket trading, while AT&T stock gained around 1.5%. EchoStar CEO Hamid Akhavan said the transaction provides “a solid financial path” for the company while ensuring it can continue to innovate as a hybrid network operator.
AT&T said it will finance the purchase through cash on hand and incremental borrowings, while reaffirming its 2025 financial guidance.
Expanding AT&T’s 5G and fiber reach
The deal will give AT&T access to wireless spectrum licenses covering more than 400 U.S. markets, strengthening both its low-band and mid-band spectrum positions. This is expected to enhance AT&T’s network performance and capacity, especially as 5G adoption accelerates nationwide.
AT&T has been aggressively investing in infrastructure. In May, the company agreed to acquire Lumen Technologies’ consumer fiber business for $5.75 billion, further bolstering its broadband capabilities. Its bundled packages combining fiber internet and mobile plans have proven popular, helping AT&T add 401,000 new monthly wireless subscribers in the second quarter.
Boost Mobile partnership expansion
As part of the agreement, AT&T and EchoStar will also expand their network services partnership. EchoStar will continue to operate Boost Mobile as a hybrid mobile virtual network operator, with AT&T serving as its primary network partner.