AT&T to Acquire Spectrum Licenses from EchoStar for $23 Billion, EchoStar Shares Surge

August 26, 2025, DALLAS/ENGLEWOOD, Colo. - EchoStar Corporation announced today that it has entered into a definitive agreement to sell its 3.45 GHz mid-band and 600 MHz low-band spectrum licenses-totaling 50 MHz nationwide-to AT&T Inc. for approximately $23 billion in cash, subject to regulatory approvals. Under the terms of the transaction, AT&T will finance the purchase with existing cash and incremental borrowings, expecting the deal to close in mid-2026.

Following the announcement, EchoStar’s shares jumped over 40% in premarket trading, while AT&T’s stock rose modestly by 1.5%. The spectrum covers more than 400 U.S. markets and is designed to strengthen AT&T’s 5G network capacity in urban and suburban areas via the mid-band spectrum, while the low-band bands enhance rural coverage and building penetration.

In addition to the sale, the companies have amended their long-term wholesale network services agreement to create a hybrid mobile network operator (MNO) partnership. Under this arrangement, EchoStar will continue to operate its Boost Mobile brand using its cloud-native 5G core, leveraging AT&T’s cell sites as its primary network services partner.

EchoStar co-founder and Chairman Charlie Ergen remarked, “I’m enormously proud of the EchoStar team for deploying the world’s first Open RAN network in record time, despite industry skepticism and pandemic-related challenges. This spectrum sale to AT&T and the hybrid MNO agreement are critical steps toward resolving the FCC’s spectrum utilization inquiries and positioning Boost Mobile for long-term success”.

AT&T Chairman and CEO John Stankey added, “This acquisition bolsters and expands our spectrum portfolio while enhancing customers’ 5G wireless and home internet experience in even more markets”. AT&T also reiterated its full-year 2025 financial guidance and plans to deploy the acquired mid-band licenses immediately upon closing, supporting its multi-year capital investment targets.

EchoStar intends to use the proceeds to retire debt obligations and fund ongoing operations and growth initiatives, while continuing to evaluate strategic opportunities for its remaining spectrum holdings.