AT&T Expands 5G Empire With $23 Billion EchoStar Spectrum Acquisition
EchoStar Corp. (NASDAQ:SATS) shares climbed on Tuesday after AT&T Inc. (NYSE:T) revealed plans to purchase spectrum licenses worth $23 billion in an all-cash transaction.
The move aims to bolster AT&T’s wireless and fiber network capacity while positioning the company as a long-term leader in advanced connectivity across the U.S.
The acquisition will deliver roughly 50 MHz of low-band and mid-band spectrum nationwide, covering more than 400 markets.
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The deal is expected to close by mid-2026, pending regulatory approvals and other conditions.
Through this agreement, AT&T will gain about 30 MHz of 3.45 GHz mid-band spectrum and 20 MHz of 600 MHz low-band spectrum.
These additions will support AT&T’s 5G deployment plans while enhancing its ability to expand home internet offerings such as AT&T Internet Air.
The licenses also provide an avenue for the company to move legacy copper-based customers onto next-generation broadband and wireless services.
As part of the transaction, AT&T and EchoStar agreed to extend their wholesale network services deal. This arrangement enables EchoStar to continue offering mobile service under the Boost Mobile brand while leveraging AT&T’s network infrastructure.
“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 of AT&T.
He emphasized the company’s strategy of blending wireless and fiber services to create the strongest connectivity platform in the country.
AT&T said it will finance the purchase through existing cash and incremental borrowings.
The company anticipates its debt-to-EBITDA ratio to rise temporarily to about 3x after closing, with a return to its leverage target of 2.5x over the following three years.
AT&T also reaffirmed its 2025 guidance, including a $20 billion share repurchase program spanning 2025 through 2027.
The acquisition strengthens AT&T’s spectrum portfolio as it continues to battle rivals such as Verizon Communications Inc. (NYSE:VZ) and T-Mobile U.S. Inc. (NASDAQ:TMUS) in the race for nationwide 5G leadership.
According to Benzinga Pro, T stock has gained over 45% in the past year. Investors can gain exposure to the stock via iShares U.S. Telecommunications ETF (BATS:IYZ).
“The proceeds of this transaction will be used for, among other things, retiring certain debt obligations and funding EchoStar’s continued operations and growth initiatives,” said Hamid Akhavan, CEO and president, EchoStar. “We continue to evaluate strategic opportunities for our remaining spectrum portfolio in partnership with the U.S. government and wireless industry participants.”
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