AT&T TO ACQUIRE ECHOSTAR SPECTRUM LICENSES IN $23 BILLION DEAL TO BOOST 5G FOOTPRINT

AT&T has struck a deal to acquire spectrum licenses from EchoStar for about $23 billion, a move that could significantly expand the telecom giant's 5G network capacity at a time when demand for high-speed mobile data is surging.

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The acquisition represents one of AT&T's largest spectrum investments to date and underscores the critical role spectrum plays in defining the future of wireless competition in the U.S.

THE DEAL STRUCTURE

According to people familiar with the transaction, AT&T will purchase a wide swath of mid-band spectrum licenses currently held by EchoStar’s Hughes Network Systems unit. These frequencies are considered prime real estate for 5G—offering the ideal balance between coverage range and data throughput.

The $23 billion agreement will include a combination of cash and assumed liabilities, with closing subject to regulatory approval from the Federal Communications Commission (FCC). If approved, AT&T would gain immediate access to spectrum that can be deployed nationwide, giving it more flexibility to handle soaring data traffic from mobile, IoT, and enterprise customers.

WHY SPECTRUM IS SO VALUABLE