AT&T and EchoStar today announced two related agreements that will expand the wireless spectrum licenses owned by AT&T and deepen the companies’ cooperation in the operation of EchoStar’s Boost Mobile brand.
AT&T will acquire approximately 30 MHz of spectrum in the 3.45 GHz mid-band and approximately 20 MHz nationwide in the 600 MHz low-band for about $23 billion. The all-cash transaction is subject to “certain adjustments.”
AT&T says that the spectrum deal with Echostar will impact virtually its entire footprint. The company says it will use the midband licenses to support AT&T Internet Air, its advanced fixed wireless home internet service.
This will include areas where it intends to offer AT&T Fiber in the future and provide customers with a migration path. It will also support artificial intelligence (AI) and Internet of Things (IoT) use cases, such as AI-native devices, autonomous vehicles, and advanced robotics.
The spectrum will support Echostar Boost Mobile customers quickly through lease arrangements for which AT&T has options that could be exercised before the deal closes.
The spectrum sale is expected to close in the middle of next year. AT&T’s press release reiterates its full-year 2025 financial guidance and capital return plans, including an expected $20 billion of share repurchase capacity in the 2025-2027 timeframe.
“This acquisition bolsters and expands our spectrum portfolio while enhancing customers’ 5G wireless and home internet experience in even more markets,” AT&T’s Chairman and CEO John Stankey said in AT&T’s press release.
The other news was the much closer relationship between AT&T and EchoStar. The companies have upgraded their network services agreement to create a hybrid mobile network operator relationship. EchoStar said the transaction is part of its “ongoing efforts to resolve the Federal Communications Commission’s (FCC) inquiries.”
Boost Mobile customers will continue to get access to its cloud-native 5G core network, which connects to both AT&T’s and T-Mobile’s networks. Elements of Boost Mobile’s radio access network will be decommissioned over time, according to the EchoStar press release.
“This transaction puts our business on a solid financial path, further facilitating EchoStar’s long-term success, and enhancing our ability to innovate and compete as a hybrid network operator,” Hamid Akhavan, EchoStar’s CEO and president, said in an EchoStar press release about the AT&T deal.
Almost a year ago — in late September — DirecTV announced the acquisition of EchoStar’s video distribution assets, which included DISH TV and the streaming service Sling TV.
