Key Points:
- AT&T will acquire $23 billion worth wireless spectrum licenses from Echostar, with the deal expected to close in mid-2026.
- EchoStar’s Boost Mobile will operate as a hybrid mobile network operator using AT&T as its primary partner, further consolidating spectrum power among the Big 3 carriers.
- The FCC had threatened to revoke EchoStar’s licenses over alleged underuse, spurring the sale; SpaceX and consumer groups had also pressured regulators to reallocate the spectrum.
AT&T said on Tuesday it will acquire wireless spectrum licenses from Dish Network parent Echostar Communications in a deal valued at $23 billion.
The agreement comes amid ongoing pressure from the Federal Communications Commission (FCC) and its chairman, Brendan Carr, who has voiced displeasure with Echostar’s apparent hoarding of spectrum and failure to deliver on a promised fourth wireless service provider meant to challenge AT&T and two others.
The deal includes an allotment of mid-band and low-band spectrum that covers more than 400 markets across the United States. AT&T says the reallocation of licenses will allow it to better serve consumer and enterprise wireless subscribers who are increasingly dependent on 5G connections.
“This acquisition bolsters and expands our spectrum portfolio while enhancing customers’ 5G wireless and home internet experience in even more markets,” John Stankey, the Chairman and CEO of AT&T, said in a statement on Tuesday. “We’re adding fuel to our winning strategy of investing in valuable wireless and broadband assets to become America’s best connectivity provider.”
The agreement also amends an existing wholesale service deal, which allows Echostar and its Boost Mobile brand to operate on AT&T’s network as a mobile virtual network operator (MVNO). AT&T will continue to serve as Boost Mobile’s primary wireless partner while Echostar decommissions some of its own towers, though customers will also be able to use T-Mobile’s network under a prior agreement.
The transaction is expected to close in mid-2026, subject to regulatory approval. AT&T said it intends to finance the purchase with a mix of cash and borrowings and reaffirmed its 2025 financial guidance. The company expects the deal to have little impact on earnings and free cash flow in the first two years but anticipates long-term growth in service revenue once the spectrum is fully deployed.
The sale comes months after FCC Chairman Brendan Carr threatened to revoke Echostar’s spectrum licenses, saying the company was failing to meet network construction deadlines despite extensions. Carr’s move followed complaints from SpaceX, which operates the Starlink broadband service, that EchoStar’s Dish Network subsidiary “barely uses” its spectrum and should be forced to make it available to other providers.
President Donald Trump later met with Carr and Echostar chairman Charlie Ergen, encouraging both sides to reach an agreement. On Tuesday, Ergen maintained Echostar had met its obligations but said the deal was “a critical step toward resolving the FCC’s spectrum utilization concerns.”
Industry analysts say the deal could be the beginning of Echostar’s spectrum portfolio being split up and sold to multiple carriers. SpaceX has continued to press the FCC for access to some of Echostar’s spectrum, calling the band “ripe for sharing among next-generation satellite systems.”
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