EchoStar (SATS) shares skyrocketed 70% following its announcement of a definitive agreement to sell 50 megahertz of its nationwide low- and mid-band spectrum allocations to AT&T (T) for approximately $23 billion. This transaction, spurred by pressure from federal regulators, includes EchoStar's 3.45-gigahertz and 600-megahertz spectrum licenses. The deal aims to resolve the Federal Communications Commission's (FCC) inquiries into whether EchoStar was meeting its wireless and satellite rights obligations. The two companies also amended their network services agreement to establish a hybrid mobile operator relationship.
The $23 billion sale provides AT&T with a significant boost to its spectrum portfolio, enhancing its 5G wireless and home internet services. AT&T CEO John Stankey noted that the acquisition bolsters and expands their capabilities. EchoStar, the operator of DISH TV and Boost Mobile, stated that this deal puts its business on a solid financial path, enabling it to retire certain debt obligations and fund future growth initiatives. The transaction is expected to close by mid-2026, subject to regulatory approvals. The minimum purchase price for the licenses was set at $18.6 billion.
This sale was influenced by the FCC's investigation into EchoStar's compliance with network construction deadlines. FCC Chairman Brendan Carr had previously threatened to revoke EchoStar's spectrum licenses, an action reportedly stemming from a meeting with President Donald Trump and EchoStar Chairman Charlie Ergen. Critics, however, voiced concerns that this deal could further entrench the dominance of AT&T, T-Mobile, and Verizon, which some, including the Justice Department, have described as an oligopoly. Consumer advocacy groups warned that such consolidation could harm competition and wireless users.
