AT&T to Acquire $23B in Spectrum Licenses from EchoStar
AT&T has agreed to acquire $23 billion of spectrum licenses from EchoStar, marking one of the largest U.S. telecom spectrum deals in recent years. The transaction includes 30 MHz of nationwide 3.45 GHz mid-band spectrum and 20 MHz of 600 MHz low-band spectrum, covering more than 400 U.S. markets. The additional spectrum is expected to significantly bolster AT&T’s 5G wireless capacity and fixed wireless/home internet services.
The deal, slated to close by mid-2026, also expands AT&T and EchoStar’s long-standing wholesale partnership. Under the agreement, EchoStar will continue operating as a hybrid mobile network operator via its Boost Mobile brand, leveraging AT&T’s expanded network footprint to serve retail customers.
From a financial standpoint, AT&T reaffirmed its 2025 guidance and outlined a capital return plan that includes $20 billion in share repurchases between 2025 and 2027. The acquisition will temporarily lift AT&T’s net debt-to-adjusted EBITDA ratio to about 3x, though the company reiterated its commitment to returning to its 2.5x leverage target within three years.
For AT&T, the deal underscores its strategy of strengthening spectrum depth in both capacity-rich mid-band and coverage-oriented low-band, positioning the carrier to compete more aggressively with rivals Verizon and T-Mobile in the next phase of 5G adoption. For EchoStar, the arrangement provides continued wholesale access and strategic focus on its Boost Mobile customer base, while monetizing valuable spectrum assets at a premium.
