AT&T Buys Wireless Spectrum from EchoStar for $23 Billion

AT&T, the US-based multinational telecommunications holding company, has agreed to purchase certain wireless spectrum licenses from EchoStar for a total of approximately $23 billion, subject to certain adjustments.

AT&T and EchoStar have also agreed to enhance their long-term wholesale network services agreement, enabling EchoStar to operate as a hybrid mobile network operator (MNO) providing wireless service under the Boost Mobile brand.  AT&T will be the primary network services partner to EchoStar as it continues to serve wireless customers.

AT7T’s Chairman and CEO John Stankey said that the deal bolsters and expands their spectrum portfolio while enhancing customers’ 5G wireless and home internet experience in even more markets.

“No one brings wireless and fiber internet to more places or does it better than AT&T – and we do it with the industry’s first and only guarantee for both wireless and fiber. We are adding fuel to our winning strategy of investing in valuable wireless and broadband assets to become America’s best connectivity provider,” Stankey said.

Transaction Details

AT&T will acquire approximately 30 MHz of nationwide 3.45 GHz mid-band spectrum and approximately 20 MHz of nationwide 600 MHz low-band spectrum for approximately $23 billion in an all-cash transaction.

These licenses cover virtually every market across the US, over 400 markets in total, significantly strengthening AT&T’s low-band and mid-band spectrum holdings. AT&T intends to begin deploying these mid-band licenses, which are compatible with its 5G network, as soon as possible.

It expects to support the deployment of these licenses, as well as the acquired low-band licenses, within the multi-year capital investment guidance provided with its second quarter 2025 earnings release. Additionally, AT&T maintains the fiber expansion targets it provided with its second quarter earnings release.

The transaction is expected to close in mid-2026, subject to certain closing conditions, including regulatory approvals.

Best Connectivity Experience

The announced acquisition furthers AT&T’s goal of becoming the best connectivity provider in America while delivering significant value to customers, shareholders and the company. This transaction will position AT&T to maintain long-term leadership in advanced, high-performance connectivity – across 5G and fiber.

AT&T already operates the largest wireless network in the US and was the first major carrier to announce plans to lead the US in commercial scale open radio access network (Open RAN) deployment.

The acquired licenses will allow AT&T to continue to be a leader in wireless through enhanced 5G coverage, even greater reliability and faster speeds.

When combined with the company’s fiber internet network, the largest and fastest growing in the US, these enhancements to its 5G network position AT&T to meet critical connectivity needs for consumers, businesses and first responders today and well into the future.

More Choice for Consumers

The deal will give the US consumers more choice when selecting home internet and wireless services the way they prefer – together.

As a result of this transaction, AT&T expects to accelerate and expand availability of its advanced fixed wireless home internet service – AT&T Internet Air. This includes areas where the company intends to offer AT&T Fiber in the future.

By rapidly deploying these mid-band spectrum licenses, the Company has the ability to quickly grow its base of AT&T Internet Air customers in these areas and migrate them to AT&T Fiber over time.

The acquired licenses also enhance AT&T’s opportunity to transition customers from legacy copper-based phone and internet services to next generation connectivity such as AT&T Internet Air and AT&T Phone – Advanced in areas that AT&T will not reach with fiber.

The company also expects to achieve long-term operating efficiencies as the acquisition of these licenses will reduce the need to boost network capacity through the capital-intensive construction of additional cell sites.

AT&T intends to finance the deal with cash on hand and incremental borrowings. Following the closing of the transaction, AT&T expects its net debt-to-adjusted EBITDA ratio to increase to the 3x range and to return to a level consistent with its leverage target in the 2.5x range within approximately three years.