EchoStar to sell spectrum licenses to AT&T for $23 billion

EchoStar is set to sell its 3.45 GHz and 600 Megahertz (MHz) spectrum licenses to AT&T for approximately $23 billion, pending regulatory approval. This transaction encompasses a total of 50 MHz of nationwide spectrum. Additionally, the agreement modifies the existing network services arrangement, establishing a hybrid mobile network operator (MNO) relationship between EchoStar and AT&T.

This sale aims to facilitate the timely deployment of spectrum to consumers in the U.S. AT&T will have the option to lease the spectrum prior to the finalization of the sale, benefiting both its subscribers and those of Boost Mobile.

Charlie Ergen, co-founder and chairman of EchoStar, expressed pride in the company's progress, stating, “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.” With the new hybrid infrastructure, Boost Mobile users will maintain access to service through AT&T's nationwide network while still having connectivity options from the T-Mobile network.

Hamid Akhavan, CEO of EchoStar, noted the financial benefits of the transaction, stating, “This transaction puts our business on a solid financial path, further facilitating EchoStar's long-term success, and enhancing our ability to innovate and compete as a hybrid network operator.” He mentioned that the proceeds will assist in clearing certain debts and supporting ongoing operations.

The completion of the transaction will occur after securing all necessary regulatory approvals. EchoStar's other business operations, including DISH TV and Sling, will not be affected by this sale.