AT&T buying EchoStar wireless spectrum in $23 billion deal
EchoStar Corp. has struck a deal to sell spectrum licenses worth about $23 billion to AT&T Inc., a move aimed at shoring up the satellite telecommunications company’s finances while alleviating regulatory scrutiny over its unused airwaves.
Announced Tuesday, the all-cash transaction will hand AT&T about 50 MHz of wireless spectrum, split between 30 MHz of mid-band and 20 MHz of low-band frequencies. The deal is expected to close by mid-2026, pending regulatory approval.
Shares of EchoStar soared as much as 81% in premarket trading in New York following the news, while AT&T stock climbed around 1%.
The sale comes amid mounting pressure from federal regulators. The Federal Communications Commission (FCC) launched an investigation in May into whether EchoStar was fulfilling its obligations to use spectrum tied to its wireless and satellite holdings. Bloomberg reported earlier this summer that regulators had urged the company to offload unused airwaves.
EchoStar, which has struggled with missed bond payments and even weighed bankruptcy, said the FCC probe had hampered its ability to make strategic decisions about its 5G network rollout. Selling spectrum to AT&T provides the company with a crucial financial lifeline while enabling it to maintain a U.S. presence through its Boost Mobile brand, which will continue to operate as a hybrid mobile network operator.
For AT&T, the deal adds to its aggressive push to expand its 5G and fiber footprint nationwide. The company emphasized that the added spectrum will bolster its ability to deliver high-speed wireless and fiber services across the U.S.
The telecom giant has been investing heavily in network infrastructure. Earlier this year, AT&T announced a $5.75 billion acquisition of Lumen Technologies’ consumer fiber operations, broadening its broadband service in key markets such as Denver and Las Vegas. The company has also previously said it would leverage savings from federal tax reforms to accelerate its fiber deployment.
If approved, the EchoStar deal will mark one of AT&T’s largest spectrum purchases in recent years, strengthening its position in the race for next-generation connectivity.
