TLDR
- AT&T agreed to buy EchoStar spectrum licenses for $23 billion to expand 5G network coverage
- EchoStar stock surged 77% premarket while AT&T gained 0.9% following the announcement
- Deal includes spectrum rights across 400+ US markets, strengthening AT&T’s network capacity
- EchoStar will become hybrid mobile operator running Boost Mobile under AT&T partnership
- Transaction expected to close mid-2026 pending regulatory approval
AT&T announced Tuesday a blockbuster $23 billion deal to acquire wireless spectrum licenses from EchoStar. The massive transaction sent EchoStar shares soaring 77% to $52.94 in premarket trading.
$ASTS: AT&T is acquiring Echostar’s 600MHZ and 3.45GHZ spectrum (50MHZ total) for $23B.
This frees up more spectrum for AST SpaceMobile to use with AT&T. Also highlights the value of 45MHZ of L-band Ligado spectrum.
Echostar could be looking to sell/lease its AWS3 and AWS4… pic.twitter.com/Erp5bz3KNf
— Anp🅰️nman (@spacanpanman) August 26, 2025
AT&T stock climbed 0.9% to $29.01 as investors welcomed the network expansion move. The telecom giant will gain spectrum rights covering more than 400 markets nationwide.
The deal strengthens AT&T’s low-band and mid-band spectrum portfolio. These frequencies are crucial for delivering fast 5G service to customers across urban and rural areas.
Strategic Network Partnership
EchoStar will transition into a hybrid mobile network operator under the expanded agreement. The satellite company will provide wireless services through its Boost Mobile brand.
AT&T becomes EchoStar’s primary network partner in this arrangement. This partnership extends the relationship beyond just the spectrum purchase.
The companies structured the deal to benefit both parties. EchoStar gets a massive cash infusion while maintaining its mobile operations through the Boost brand.
Financing and Timeline Details
AT&T plans to fund the purchase using existing cash reserves and new borrowings. The company maintained its 2025 financial guidance despite the large investment.
Management expects adjusted earnings between $1.97 and $2.07 per share this year. The $20 billion share buyback program for 2025-2027 remains on track.
The transaction requires regulatory approval before completion. Both companies expect the deal to close by mid-2026.
Recent Acquisition Activity
This marks AT&T’s second major acquisition in recent months. The company agreed to buy Lumen Technologies’ fiber operations for $5.75 billion in May.
These deals reflect AT&T’s strategy to dominate next-generation connectivity. The spectrum purchase particularly targets 5G network leadership as competition intensifies.
Wireless spectrum has become increasingly valuable as data usage explodes. The licenses give AT&T exclusive rights to specific radio frequencies in designated markets.
The $23 billion price tag reflects current market conditions for premium spectrum assets. Industry experts view these frequencies as essential infrastructure for future growth.
AT&T said the acquisition supports “long-term leadership in advanced connectivity across 5G and fiber.” The company expects the additional spectrum to enhance service quality and network capacity across its coverage area.
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