AT&T announces $23 billion deal to acquire EchoStar’s spectrum licenses; here’s what it means for users

AT&T has reached an agreement to acquire wireless spectrum licenses from EchoStar in a nearly $23 billion deal. This deal will also improve a long-term wholesale network services agreement between the two companies. Under the new arrangement, AT&T will become the primary network services partner for EchoStar, allowing it to operate as a hybrid mobile network operator for its Boost Mobile brand. “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 CEO of AT&T said in a blog post.AT&T has confirmed that it will acquire nearly 30 MHz of nationwide 3.45 GHz mid-band spectrum and 20 MHz of nationwide 600 MHz low-band spectrum in an all-cash transaction valued at about $23 billion, subject to adjustments. The licenses that will cover over 400 markets across the US are expected to strengthen AT&T’s spectrum holdings in both low-band and mid-band frequencies. The company plans to begin deploying the mid-band licenses, which are compatible with its 5G network, as soon as possible. Deployment of the mid-band and low-band licenses is expected to take place within the multi-year capital investment guidance shared in AT&T’s second-quarter 2025 earnings release. AT&T also confirmed that its fibre expansion targets remain unchanged. The transaction is expected to close in mid-2026, pending regulatory approvals and other closing conditions.The acquired licenses are expected to expand AT&T’s 5G coverage and capacity, supporting greater reliability and higher data speeds. When combined with AT&T’s fibre internet network, the spectrum is intended to help meet increasing demand for data and enable upcoming use cases, including applications in AI, autonomous vehicles, and advanced robotics.AT&T also expects to expand the availability of its fixed wireless home internet service, AT&T Internet Air, particularly in areas where the company plans to deploy fibre in the coming days. The spectrum licenses will allow the company to transition customers from legacy copper-based services to newer technologies such as AT&T Internet Air and AT&T Phone – Advanced.In addition, the acquisition is expected to support long-term growth and efficiencies. AT&T anticipates that the added spectrum will reduce the need for new cell site construction to increase network capacity, lowering capital costs over time.