AT&T Plans $23B EchoStar Spectrum Acquisition Across 400+ US Markets

AT&T announced a $23 billion all-cash acquisition of spectrum licenses from EchoStar, aiming to strengthen its 5G and fiber network capacity nationwide. The deal includes approximately 50 MHz of spectrum, split between 30 MHz of mid-band 3.45 GHz and 20 MHz of low-band 600 MHz, covering over 400 U.S. markets, with closing expected by mid-2026 pending regulatory approval. This strategic purchase supports AT&T's goal of enhancing wireless and fixed wireless home internet services, including AT&T Internet Air, while facilitating the transition of legacy copper customers to next-generation broadband. The acquisition also extends the wholesale agreement allowing EchoStar’s Boost Mobile to continue operating on AT&T’s network infrastructure, preserving service for about 10 million subscribers. Following the announcement, EchoStar's stock surged dramatically due to the deal's market impact and the resolution of its regulatory and financial challenges, while AT&T's shares showed moderate gains. Analysts view the transaction as a key move to solidify AT&T's position as a leading connectivity provider, though some caution remains regarding the deal's valuation and the regulatory hurdles it may face.