AT&T’s headquarters in downtown Dallas. [Photo: AT&T]

Dallas-based telecom giant AT&T (NYSE:T) has agreed to buy key wireless spectrum licenses from Colorado-based satellite communications provider EchoStar (Nasdaq: SATS) for $23 billion. The deal aims to strengthen AT&T’s low-band and mid-band spectrum holdings, the company said.

“This acquisition bolsters and expands our spectrum portfolio while enhancing customers’ 5G wireless and home internet experience in even more markets,” AT&T CEO and Chairman John Stankey said in a statement. “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.”

The deal is expected to close in mid-2026, AT&T said. The company intends to finance the spectrum purchase transaction with cash on hand and incremental borrowings.

AT&T and EchoStar said they also agreed to enhance their long-term wholesale network services agreement, enabling EchoStar to operate as a hybrid mobile network operator (MNO) providing wireless service under the Boost Mobile brand. AT&T said it will be the primary network services partner to EchoStar as it continues to serve wireless customers.

AT&T said it will acquire roughly 30 MHz of nationwide 3.45 GHz mid-band spectrum and about 20 MHz of nationwide 600 MHz low-band spectrum.

Covers more than 400 markets across U.S.

The company licenses cover virtually every market in the nation—more than 400 markets in total—significantly strengthening AT&T’s low-band and mid-band spectrum holdings.

AT&T said it intends to begin deploying these mid-band licenses, which are compatible with its 5G network, as soon as possible and expects to support the deployment of these licenses, as well as the acquired low-band licenses, within the multi-year capital investment guidance provided with its second quarter 2025 earnings release.

Highlights of the deal

Per AT&T, the acquisition will:

:: Position AT&T to maintain long-term leadership in advanced, high-performance connectivity — across 5G and fiber. AT&T already operates the largest wireless network in the U.S. and was the first major carrier to announce plans to lead the U.S. in commercial scale open radio access network (Open RAN) deployment. The acquired licenses will allow AT&T to continue to be a leader in wireless through enhanced 5G coverage, even greater reliability, and faster speeds.

:: When combined with the company’s fiber internet network — the largest and fastest growing in the U.S. — these enhancements to its 5G network position AT&T to meet critical connectivity needs for consumers, businesses and first responders today and well into the future.

:: The next generation of connectivity is beginning to emerge and will require networks with even greater capacity as data demand grows. This move positions AT&T to be at the forefront of enabling emerging AI and IoT use cases, such as AI-native devices, autonomous vehicles, and advanced robotics.

:: Give American consumers “more choice” when selecting home internet and wireless services together. As a result of this transaction, AT&T expects to accelerate and expand availability of its advanced fixed wireless home internet service—AT&T Internet Air. This includes areas where AT&T intends to offer AT&T Fiber in the future. By rapidly deploying these mid-band spectrum licenses, the company has the ability to quickly grow its base of AT&T Internet Air customers in these areas and migrate them to AT&T Fiber over time. The acquired licenses also enhance AT&T’s opportunity to transition customers from legacy copper-based phone and internet services to next generation connectivity such as AT&T Internet Air and AT&T Phone advanced in areas that AT&T will not reach with fiber.

:: Drive improved and capital efficient long-term growth. By accelerating and expanding the company’s opportunity to offer advanced connectivity across the country, AT&T expects this transaction to support strong and sustained growth in its high-value base of converged customers that subscribe to both its home internet and 5G wireless services.

AT&T said it also expects to achieve long-term operating efficiencies as the acquisition of these licenses will reduce the need to boost network capacity through the capital-intensive construction of additional cell sites.

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