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37m ago

AT&T to Buy $23 Billion of EchoStar Spectrum to Expand 5G Reach

EchoStar seeks to resolve FCC scrutiny through a sale that strengthens its balance sheet.

FILE - In this Oct. 24, 2016, file photo, the AT&T logo is positioned above one of its retail stores, in New York. (AP Photo/Mark Lennihan, File)
"This transaction is good for both consumers and competition across our industry, which aligns with the administration’s priorities," Pascal Desroches says.
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Overview

  • AT&T agreed to acquire roughly 50 MHz of nationwide spectrum from EchoStar, including about 30 MHz at 3.45 GHz and 20 MHz at 600 MHz, in an all-cash deal.
  • The licenses span more than 400 U.S. markets, and AT&T said it plans rapid deployment and can lease the airwaves before an expected mid-2026 close pending regulatory approvals.
  • The companies amended their agreement to let EchoStar operate Boost Mobile as a hybrid mobile network operator on AT&T’s network, with continued access to T-Mobile and a phased decommissioning of parts of Boost’s RAN.
  • EchoStar said proceeds will be used to retire debt and fund operations as part of efforts to address FCC inquiries into its spectrum use and buildout obligations.
  • EchoStar shares jumped roughly 70%–80% on the announcement, while analysts and advocates noted the shift away from a standalone fourth facilities-based carrier could further entrench the Big Three.