AT&T snatches up wireless spectrum licenses from EchoStar for $23 billion

Key Points

• AT&T will acquire wireless spectrum licenses from EchoStar for $23 billion, enhancing its low- and mid-band coverage across more than 400 U.S. markets.
• The deal reinforces a long-term services agreement, with AT&T becoming the primary network partner for EchoStar's Boost Mobile brand.
• AT&T plans to expand its fiber broadband network to over 50 million locations by 2029 and complete its 5G wireless network modernization by 2027.
• Following the acquisition announcement, EchoStar's shares surged 76%, while AT&T's shares saw a modest gain of less than 1%.

AT&T will spend $23 billion to acquire certain wireless spectrum licenses from EchoStar, a significant expansion of AT&T’s low- and mid-band coverage networks.

AT&T said Tuesday that the licenses cover virtually every U.S. market — more than 400 total — which the company plans to deploy as soon as possible to lure more home internet subscribers and meet its growth goals.

The deal also fortifies the long-term services agreement between AT&T and EchoStar, enabling the latter to operate as a hybrid mobile network operator providing wireless service under its Boost Mobile brand. AT&T will be the primary network services partner to EchoStar.

Shares of EchoStar, based in Englewood, Colorado, soared 76% at the opening bell Tuesday.

“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. ”We’re adding fuel to our winning strategy of investing in valuable wireless and broadband assets to become America’s best connectivity provider.”

Late in 2024, AT&T said it would expand its fiber broadband network to more than 50 million locations by the end of 2029, while actively working to exit its legacy copper network operations across most of its wireline footprint.

AT&T expects to have largely completed the modernization of its 5G wireless network with open technology by 2027. The company said the network will be able to support super-fast download speeds and serve as a platform for new product and GenAI innovation.

In its most recent earnings report in July, AT&T said it expected to realize up to $8 billion of cash tax savings from 2025 to 2027 due to tax provisions in the Republicans' One Big Beautiful Bill Act. AT&T estimated that it would invest $3.5 billion of those savings into its network to accelerate its fiber internet build-out.

Shares of AT&T Inc., based in Dallas, rose less than 1% Tuesday.