BY Fraser Tennant
In a deal designed to boost its 5G networks, US multinational telecommunications holding company AT&T is to acquire certain wireless spectrum licences from mobile satellite communication services provider EchoStar for $23bn.
The licence sale to AT&T will enable rapid deployment of the purchased spectrum to US consumers across the country – with AT&T having the option to lease the spectrum, pending the closing of the spectrum sale – an arrangement that benefits both AT&T and Boost Mobile subscribers.
“This acquisition bolsters and expands our spectrum portfolio while enhancing customers’ 5G wireless and home internet experience in even more markets,” said John Stankey, chairman and chief executive of AT&T. “We are adding fuel to our winning strategy of investing in valuable wireless and broadband assets to become America’s best connectivity provider.”
Facing scrutiny from government regulators, in June 2025, President Trump requested that EchoStar and Brendan Carr, chair of the Federal Communications Commission (FCC), reach an amicable deal over the fate of the company’s wireless spectrum licences.
To that end, the spectrum sale to AT&T and hybrid mobile network operator (MNO) agreement – providing wireless service under the Boost Mobile brand – are critical steps toward resolving the FCC’s spectrum utilisation concerns.
Through Boost Mobile’s hybrid MNO infrastructure, subscribers will continue to receive service from Boost Mobile’s cloud-native 5G core connected to AT&T’s leading nationwide network. While primary connectivity will be provided by AT&T’s towers, Boost Mobile subscribers will continue to have access to the T-Mobile network.
“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,” said Hamid Akhavan, chief executive and president of EchoStar. “The proceeds of this transaction will be used for, among other things, retiring certain debt obligations and funding EchoStar’s continued operations and growth initiatives.”
The transaction is expected to close in mid-2026, subject to certain closing conditions, including regulatory approvals.
Mr Akhavan concluded: “We continue to evaluate strategic opportunities for our remaining spectrum portfolio in partnership with the US government and wireless industry participants."
News: EchoStar to sell wireless spectrum licenses to AT&T in $23 billion deal