AT&T has agreed to acquire wireless spectrum licenses from EchoStar in a transaction valued at $23 billion, subject to adjustments.
The deal will significantly expand AT&T’s spectrum holdings, adding around 30 MHz of nationwide 3.45 GHz mid-band spectrum and 20 MHz of nationwide 600 MHz low-band spectrum, covering more than 400 markets across the U.S. The transaction is expected to close by mid-2026, pending regulatory approvals, and will be financed through cash on hand and incremental borrowings.
As part of the agreement, AT&T and EchoStar will also enhance their long-term wholesale network partnership. EchoStar will continue operating as a hybrid mobile network operator under the Boost Mobile brand, with AT&T serving as its primary network partner.
AT&T Chairman and CEO John Stankey said the acquisition bolsters the company’s strategy of investing in high-value broadband and wireless assets. He emphasized that the deal will enhance customers’ 5G wireless and home internet experiences, while reinforcing AT&T’s position as America’s leading connectivity provider.
The additional spectrum will allow AT&T to expand its 5G coverage, improve reliability and speeds, and accelerate the rollout of AT&T Internet Air fixed wireless service, with the potential to transition those customers to AT&T Fiber in the future. It will also enable the company to transition legacy copper-based customers to next-generation connectivity solutions such as AT&T Internet Air and AT&T Phone – Advanced.
The acquisition positions AT&T to support future technologies requiring high-capacity networks, including AI-native devices, IoT applications, autonomous vehicles and robotics. By leveraging these spectrum assets, AT&T expects to drive capital-efficient growth, reduce the need for costly new cell sites, and strengthen its base of converged customers who subscribe to both 5G and fiber services.
Financially, AT&T expects its net debt-to-adjusted EBITDA ratio to temporarily rise to about 3x after the deal closes, but return to its long-term 2.5x target within three years. The company does not anticipate a material impact on adjusted EPS or free cash flow during the first two years following the deal, with accretion to both expected by the third year.
AT&T reiterated its 2025 financial guidance and capital return plans, which include $20 billion in share repurchase capacity for 2025–2027, supported by growth in service revenue, adjusted EBITDA, and free cash flow.
By acquiring these nationwide spectrum licenses and expanding its partnership with EchoStar, AT&T strengthens its leadership in 5G and fiber connectivity, ensuring it can meet the growing demand for reliable, high-performance networks and solidify its long-term growth strategy.
AT&T’s recent deals
AT&T has made a significant expansion of its fiber broadband footprint by agreeing to acquire Lumen Technologies’ consumer fiber business for approximately $5.75 billion in cash, bringing nearly one million new fiber customers across more than four million fiber locations in 11 U.S. states, including major metro areas like Denver, Las Vegas, Minneapolis–St. Paul, Orlando, Phoenix, Portland, Salt Lake City and Seattl. The deal is expected to close in the first half of 2026.
Earlier in 2025, AT&T completed a structured sale-leaseback deal of 74 underutilized central office properties with development firm Reign Capital, generating more than $850 million in cash.
AT&T wrapped up its exit from the pay-TV business by selling its remaining 70 percent stake in DirecTV to private equity firm TPG, a move that signals its full retreat from media and entertainment to concentrate on telecommunications and connectivity services.
Baburajan Kizhakedath
