AT&T has announced a monumental $23 billion all-cash agreement to acquire significant wireless spectrum licenses from EchoStar. This transaction, covering around 50 MHz of nationwide spectrum—30 MHz in the 3.45 GHz mid-band and 20 MHz in the 600 MHz low-band—will bolster AT&T’s reach, encompassing over 400 U.S. markets. The deal, pending regulatory approval, is expected to be finalized by mid-2026.
Alongside the acquisition, AT&T and EchoStar will expand their wholesale network partnership, positioning EchoStar as a hybrid mobile network operator that utilizes AT&T’s advanced infrastructure and leverages Boost Mobile.
This strategic investment is poised to reinforce AT&T’s leadership in wireless and fiber connectivity. The newly acquired mid-band spectrum is 5G-ready, enabling AT&T to accelerate its rollout of high-speed, reliable wireless and home internet services. The spectrum also supports AT&T’s ambitions in emerging technologies such as AI-powered devices and autonomous systems, ensuring the company can meet the surging demand for data-driven applications.
Financially, AT&T plans to fund the acquisition through cash and additional borrowings, temporarily increasing its net debt-to-adjusted EBITDA ratio to about 3x, with a target to reduce this to 2.5x within three years. The company reassures investors that it will honor its $20 billion share repurchase plan for 2025-2027 and expects long-term growth without significant short-term impact on earnings or free cash flow.
In summary, this $23 billion deal cements AT&T’s position as a national connectivity leader, expanding its 5G assets and ensuring future-ready service for consumers and businesses across the United States.
KEY QUOTE:
“This acquisition bolsters and expands our spectrum portfolio while enhancing customers’ 5G wireless and home internet experience in even more markets. No one brings wireless and fiber internet to more places or does it better than AT&T – and we do it with the industry’s first and only guarantee for both wireless and fiber. We’re adding fuel to our winning strategy of investing in valuable wireless and broadband assets to become America’s best connectivity provider.”
John Stankey, Chairman and CEO, AT&T
