AT&T To Buy Spectrum Licenses From EchoStar For $23 Billion

AT&T (T) announced on Tuesday that it has agreed to purchase certain wireless spectrum licenses from EchoStar (SATS) for $23 billion.

AT&T and EchoStar have enhanced their long-term wholesale network services agreement, which will enable 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.

Retail sentiment on EchoStar improved to ‘bullish’ from ‘bearish’ territory a day ago, with message volumes at ‘high’ levels, according to data from Stocktwits. Shares of EchoStar jumped nearly 80% before the bell. "This acquisition bolsters and expands our spectrum portfolio while enhancing customers' 5G wireless and home internet experience in even more markets," said AT&T CEO John Stankey.

AT&T said it will buy about 30 MHz of nationwide 3.45 GHz mid-band spectrum and about 20 MHz of nationwide 600 MHz low-band spectrum from EchoStar. It added that these licenses cover virtually every market across the U.S., which is over 400 markets in total, and help strengthen AT&T's low-band and mid-band spectrum holdings.

Retail sentiment on AT&T remained unchanged in the ‘bullish’ territory, with chatter at ‘normal’ levels, according to data from Stocktwits. Shares of the company were up nearly 1% in premarket trading.

AT&T said it intends to begin deploying these mid-band licenses, which are compatible with its 5G network, as soon as possible. The transaction is expected to close in mid-2026.

The company added that it intends to finance the spectrum purchase transaction with cash on hand and incremental borrowings. Following the closing of the deal, AT&T expects its net debt-to-adjusted earnings before interest, taxes, depreciation, and amortisation (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 3 years.

The company also reiterated all full-year 2025 financial guidance and the long-term financial outlook. AT&T stock has gained over 26% this year and surged 46% in the last 12 months. 

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