TLDR
- AT&T agreed to purchase EchoStar’s wireless spectrum licenses for $23 billion to expand its 5G and fiber network
- EchoStar shares jumped 77% in premarket trading while AT&T rose 0.9%
- The deal covers more than 400 markets across the U.S. and strengthens AT&T’s spectrum holdings
- EchoStar will operate as a hybrid mobile network operator providing wireless service under the Boost Mobile brand
- The transaction is expected to close in mid-2026 subject to regulatory approval
AT&T announced Tuesday it will acquire certain wireless spectrum licenses from EchoStar for approximately $23 billion. The deal represents a major expansion of the telecom giant’s network infrastructure.
EchoStar shares skyrocketed 77% to $52.94 in premarket trading following the announcement. AT&T stock climbed 0.9% to $29.01 ahead of the opening bell.
The spectrum licenses cover more than 400 markets across the United States. AT&T says the acquisition will strengthen its low-band and mid-band spectrum holdings.
The purchase supports AT&T’s investment strategy to accelerate fiber and 5G network buildout. The company faces increasing competition in the saturated wireless market while internet usage continues to surge.
Under the agreement, EchoStar will operate as a hybrid mobile network operator. The satellite communications company will provide wireless service under the Boost Mobile brand.
AT&T will serve as EchoStar’s primary network partner in this expanded arrangement. This partnership extends beyond the spectrum purchase itself.
The transaction is expected to close in mid-2026. The deal requires regulatory approval before completion.
Financial Details and Guidance
AT&T plans to finance the spectrum purchase using cash on hand and incremental borrowings. The company maintained its 2025 financial guidance following the announcement.
The telecom giant expects adjusted earnings between $1.97 and $2.07 per share for 2025. AT&T also confirmed its stock buyback plan remains intact.
The company has $20 billion in expected share repurchase capacity between 2025 and 2027. This buyback program continues despite the large spectrum investment.
Recent Acquisition Activity
This marks AT&T’s second major acquisition announcement in recent months. In May, the company agreed to purchase Lumen Technologies’ consumer fiber operations.
The Lumen deal was valued at $5.75 billion in cash. That transaction focused on expanding AT&T’s fiber network capabilities.
The EchoStar spectrum purchase represents a much larger investment. The $23 billion price tag reflects the value of wireless spectrum in today’s market.
Both deals align with AT&T’s strategy to maintain network leadership. The company seeks to stay competitive as 5G technology becomes standard.
The spectrum licenses will give AT&T exclusive rights to specific radio frequencies in designated areas. These rights are essential for providing wireless service to customers.
AT&T said the transaction will help maintain “long-term leadership in advanced connectivity across 5G and fiber.” The company views spectrum as a critical asset for future growth.
