EchoStar Shares Skyrocket on AT\u0026T's $23 Billion Offer for Spectrum Licenses
EchoStar shares surged after the company announced a definitive agreement with AT&T to sell spectrum licenses for approximately $23 billion, representing 267% of its closing share price on Monday. The
EchoStar shares surged after the company announced a definitive agreement with AT&T to sell spectrum licenses for approximately $23 billion, representing 267% of its closing share price on Monday. The agreement covers a total of 50 MHz of nationwide spectrum, including licenses in the 3.45 GHz and 600 MHz bands, and is subject to regulatory approval.
As part of the arrangement, EchoStar and AT&T also amended their existing network services agreement, creating a hybrid mobile network operator (MNO) relationship. Under this structure, Boost Mobile subscribers will continue to be served by EchoStar’s cloud-native 5G core while leveraging AT&T’s nationwide tower network. Customers will also retain access to the T-Mobile network, with no service interruptions expected, though parts of Boost Mobile’s radio access network will be decommissioned over time.
The deal marks a significant step toward resolving inquiries from the Federal Communications Commission (FCC), which had raised concerns about EchoStar’s spectrum utilization and 5G buildout obligations. SpaceX had previously urged the FCC to reallocate underused spectrum to satellite providers, intensifying the pressure on EchoStar to act.
Charlie Ergen, EchoStar’s co-founder and chairman, stressed the importance of the sale: “This arrangement benefits both AT&T and Boost Mobile subscribers. I’m enormously proud of the EchoStar team for deploying the world’s first Open RAN network in record time, despite industry skepticism and the challenges of the COVID-19 pandemic. EchoStar and Boost Mobile have met all of the FCC’s buildout milestones, but this spectrum sale and hybrid MNO agreement are critical steps toward addressing the FCC’s concerns.”
EchoStar CEO and president Hamid Akhavan added: “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. The proceeds will be used to retire certain debt obligations and to fund our continued operations and growth initiatives.” He also noted that EchoStar will continue to evaluate strategic opportunities for its remaining spectrum portfolio in partnership with the U.S. government and industry peers.
The sale will also strengthen EchoStar’s balance sheet at a crucial time. Its Dish DBS subsidiary narrowly avoided default last month after making delayed interest payments. By injecting fresh liquidity, the $23 billion deal provides an essential financial cushion.
AT&T emphasized that the acquisition will enhance its low- and mid-band spectrum holdings across more than 400 U.S. markets. “This acquisition bolsters and expands our spectrum portfolio while enhancing customers’ 5G wireless and home internet experience in even more markets,” said John Stankey, AT&T’s CEO.
EchoStar confirmed that the operations of its other businesses—including Dish TV, Sling, and Hughes—will not be affected by this transaction. Closing will occur once all required regulatory approvals and other conditions are met.
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