EchoStar (NASDAQ:SATS) announced that it has agreed to sell a total of 50 megahertz (MHz) of nationwide wireless spectrum licenses to AT&T Inc (NYSE:T, ETR:SOBA) for about $23 billion in cash, sending EchoStar’s stock price up more than 80% in early Tuesday trading.
The deal, which involves mid-band and low-band spectrum, is expected to close in mid-2026, pending regulatory approval.
"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," EchoStar CEO Hamid Akhavan said in a statement.
“The proceeds of this transaction will be used for, among other things, retiring certain debt obligations and funding EchoStar's continued operations and growth initiatives."
EchoStar also noted in a regulatory filing that the sale is part of the company’s “ongoing efforts to resolve the Federal Communications Commission (FCC)’s inquiries.”
SpaceX, owned by Elon Musk, issued a complaint that EchoStar had left “valuable mid-band spectrum chronically underused,” and the FCC should take steps to let “new satellite entrants” put it to use.
This was followed by a letter from FCC Chair Brendan Carr addressed to EchoStar Chair Charlie Ergen, saying that FCC staff would investigate the company’s compliance with federal requirements to build a 5G network.
EchoStar and AT&T also agreed to amend their network services agreement to create a hybrid mobile network operator (MNO) relationship, offering subscribers connectivity through EchoStar’s Boost Mobile's cloud-native 5G core and AT&T's cell sites.
AT&T shares eased 1.3% following the announcement.