EchoStar Corp.’s shares surged more than 75% on Tuesday after AT&T announced a landmark agreement to acquire wireless spectrum licenses from the telecom company in an all-cash $23 billion deal.
The acquisition will provide AT&T with around 50 megahertz of mid-band and low-band spectrum, covering over 400 U.S. markets. The transaction, subject to regulatory approval, is expected to close in mid-2026.
EchoStar confirmed in a regulatory filing that the move is part of its broader effort to address Federal Communications Commission (FCC) inquiries into its compliance with network buildout requirements. The FCC’s scrutiny followed a May letter from FCC Chairman Brendan Carr, noting investigations into whether EchoStar adequately built a 5G network, after SpaceX’s Starlink raised concerns that valuable spectrum had been “chronically underused.”
Alongside the deal, AT&T and EchoStar expanded their network services agreement, which will allow EchoStar to operate as a hybrid mobile network operator (MNO) under the Boost Mobile brand.
“EchoStar and Boost Mobile have met all of the FCC’s network buildout milestones. However, this spectrum sale to AT&T and hybrid MNO agreement are critical steps toward resolving the FCC’s spectrum utilization concerns,” EchoStar Chairman Charlie Ergen said.
AT&T CEO John Stankey told CNBC the agreement represents a “win all the way around,” noting regulators would likely see it as a “very attractive” move to expand consumer options.
Following the announcement, EchoStar stock skyrocketed, while AT&T shares dipped more than 1%.
