Today EchoStar, the parent company of DISH Network, has agreed to sell a substantial portion of its wireless spectrum licenses to AT&T in a deal valued at approximately $23 billion. Announced on the same day, this all-cash transaction, subject to adjustments, marks a strategic pivot for both companies as they navigate the evolving demands of the U.S. market.
The acquisition involves the transfer of around 30 MHz of nationwide 3.45 GHz mid-band spectrum and 20 MHz of 600 MHz low-band spectrum, covering over 400 markets across the United States. This addition significantly bolsters AT&T’s existing spectrum holdings, enhancing its ability to deliver advanced 5G services and maintain a competitive edge in wireless connectivity. The deal positions AT&T to expand its network capacity efficiently, reducing the need for costly new cell site construction and promising long-term operating efficiencies.
AT&T plans to integrate these new licenses swiftly, with deployment of the mid-band spectrum expected to begin soon after regulatory approvals, anticipated for mid-2026. The low-band spectrum will follow, aligning with the company’s multi-year capital investment strategy outlined in its second quarter 2025 earnings. This move is expected to accelerate the rollout of AT&T Internet Air, a fixed wireless home internet service, particularly in areas slated for future fiber expansion. The company aims to transition customers from legacy copper-based services to next-generation solutions, improving connectivity options nationwide.
For EchoStar, the transaction allows a continued presence in the wireless sector through a revamped wholesale network services agreement with AT&T. Operating as a hybrid mobile network operator under the Boost Mobile brand, EchoStar will leverage AT&T’s leading network to serve its customer base, ensuring a seamless transition post-deal. This partnership underscores a collaborative approach to sustaining wireless services while AT&T focuses on expanding its converged offerings of 5G and fiber internet.
Financially, AT&T intends to fund the purchase using existing cash reserves and incremental borrowings, anticipating a temporary increase in its net debt-to-adjusted EBITDA ratio to around 3x. The company expects to return to its long-term leverage target of 2.5x within three years, supported by strong free cash flow and sustained growth in service revenue. Despite the significant investment, AT&T reaffirms its 2025 financial guidance and a $20 billion share repurchase capacity through 2027, signaling confidence in its long-term strategy.
This deal, detailed further in a webcast scheduled for 8:30 a.m. ET today at investors.att.com, highlights AT&T’s ambition to solidify its position as America’s premier connectivity provider. By enhancing network capabilities and expanding service reach, the company aims to meet the growing demands of consumers, businesses, and first responders, setting the stage for future innovations in an increasingly connected world.
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