EchoStar Corp Announces Major Spectrum Sale to AT&T

In a significant move within the communications sector, EchoStar Corp has announced a definitive agreement to sell its 3.45 GHz and 600 MHz spectrum licenses to AT&T for approximately $23 billion. This transaction, subject to regulatory approval, marks a pivotal step in EchoStar’s strategy to address inquiries from the Federal Communications Commission (FCC) and reshape its business model.

The sale involves a total of 50 MHz of nationwide spectrum, a critical asset for expanding wireless network capabilities. This deal is not just a spectrum sale but also includes an amendment to the existing network services agreement between EchoStar and AT&T, establishing a hybrid mobile network operator (MNO) relationship. Under this arrangement, Boost Mobile, a subsidiary of EchoStar, will continue to operate as a competitive player in the U.S. wireless market. It will leverage Boost Mobile’s cloud-native 5G core in conjunction with AT&T’s extensive cell site infrastructure, ensuring robust connectivity for its subscribers.

This strategic partnership underscores EchoStar’s commitment to resolving FCC inquiries and optimizing its asset portfolio. By divesting these spectrum licenses, EchoStar aims to streamline its operations and focus on its core competencies in satellite broadband communication solutions. The transaction is expected to bolster AT&T’s network expansion efforts, enhancing its competitive edge in the telecommunications landscape.

EchoStar’s market capitalization stands at $7.91 billion, with a close price of $29.88 as of August 24, 2025. Despite a negative price-to-earnings ratio of -25.149, the company’s strategic maneuvers, including this spectrum sale, are anticipated to positively influence its financial trajectory and market perception.

As the telecommunications industry continues to evolve, EchoStar’s decision to partner with AT&T reflects a forward-looking approach, positioning the company to capitalize on emerging opportunities in the communications equipment sector. This deal not only addresses regulatory concerns but also sets the stage for future growth and innovation in satellite and wireless communications.