AT&T to Acquire EchoStar Wireless Spectrum Licenses for $23B

AT&T announced that it will acquire EchoStar wireless spectrum licenses for about $23 billion. The U.S. telecom provider said the deal is designed to boost its network as competition intensifies across the wireless sector.

In June, President Donald Trump, along with Federal Communications Commission (FCC) Chair Brendan Carr, encouraged EchoStar, the parent company of satellite communications and Dish TV, to reach a resolution on the company’s spectrum assets. 

The agreement represents one of AT&T’s largest investments in recent times to accelerate the rollout of fiber and 5G networks. The move comes at a time when demand for internet continues to grow rapidly and the wireless market edges closer to saturation.

In May, the FCC began reviewing EchoStar’s compliance with its obligations to deploy 5G services in the United States. The regulator raised questions about the company’s buildout timeline and mobile-satellite operations. On June 12, Trump met with EchoStar Chair Charlie Ergen, later asking Carr to participate in discussions. EchoStar had been seeking to protect its wireless spectrum licenses from the risk of revocation by FCC.

EchoStar confirmed that the agreement with AT&T forms part of its efforts to resolve the FCC inquiries. 

The bundled plans of AT&T, which combine high-speed fiber with mobile offerings, have resonated well with customers. AT&T had an addition of 401,000 new monthly bill-paying wireless phone subscribers in the April-June period. 

The EchoStar wireless spectrum licenses span more than 400 U.S. markets, which will strengthen AT&T’s presence in low-band and mid-band spectrum portfolios.

Under the terms of the deal, AT&T and EchoStar will also expand their current network services agreement. EchoStar would operate as a hybrid mobile network operator providing wireless service under the Boost Mobile brand, with AT&T as its primary network partner.