AT&T to Acquire Wireless Spectrum from EchoStar in $23 Billion Deal to Expand 5G and Internet Reach

DALLAS, Aug. 26, 2025 — AT&T (NYSE:T) announced Tuesday that it will acquire wireless spectrum licenses from EchoStar (NASDAQ:SATS) in a $23 billion deal, a move set to expand its 5G network and home internet services across the United States. The deal, which is subject to regulatory approvals and other customary closing conditions, is expected to close by mid-2026.

The acquisition covers roughly 30 MHz of nationwide 3.45 GHz mid-band spectrum and 20 MHz of nationwide 600 MHz low-band spectrum, giving AT&T spectrum holdings in more than 400 U.S. markets. The licenses are compatible with AT&T’s 5G network and will enable the company to accelerate deployment of mid-band 5G services while expanding fixed wireless offerings, including AT&T Internet Air.

“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 Chairman and CEO. “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.”

Strategic Partnership with EchoStar

In addition to the spectrum purchase, AT&T and EchoStar have agreed to enhance their long-term wholesale network services agreement. Under the expanded arrangement, EchoStar will operate as a hybrid mobile network operator (MNO) under the Boost Mobile brand, with AT&T serving as its primary network services partner. This collaboration ensures continuity of service for EchoStar customers while allowing AT&T to leverage its infrastructure and spectrum for broader network reach.

Enhancing 5G and Fiber Capabilities

The spectrum acquisition positions AT&T to maintain its leadership in advanced connectivity, combining the mid-band and low-band licenses with the company’s existing wireless and fiber networks. AT&T operates the largest wireless network in the U.S. and has committed to commercial-scale Open RAN deployment, enabling more flexible and efficient network operations.

The newly acquired licenses will allow the company to improve 5G coverage, reliability, and speed, while complementing its fiber internet footprint. AT&T’s fiber network, the fastest-growing in the country, will work in tandem with the 5G upgrades to meet growing consumer, business, and first responder connectivity needs.

“This move positions AT&T to be at the forefront of emerging AI and IoT applications, including AI-native devices, autonomous vehicles, and advanced robotics,” John added.

Consumer Choice and Service Expansion

The acquisition also enhances AT&T’s ability to offer consumers more options for home internet and wireless services. With the deployment of mid-band spectrum, the company expects to accelerate its fixed wireless service, AT&T Internet Air, in markets that will eventually receive fiber. Over time, customers can be migrated from AT&T Internet Air to fiber, expanding access to high-speed connectivity.

Additionally, the expanded spectrum supports AT&T’s strategy to transition customers from legacy copper-based phone and internet services to next-generation solutions like AT&T Internet Air and AT&T Phone – Advanced in areas where fiber is not yet available.

Financial Strategy and Growth Outlook

AT&T plans to finance the transaction using cash on hand and incremental borrowings. Following the deal, the company expects its net debt-to-adjusted EBITDA ratio to rise to around 3x, with a return to its long-term target of 2.5x over approximately three years. The company reaffirmed its capital return plans, including $20 billion allocated for share repurchases between 2025 and 2027, while continuing a measured approach to capital allocation through 2029.

The acquisition is expected to support long-term growth in high-value converged customers, those subscribing to both home internet and 5G services, while driving operating efficiencies by reducing the need for additional cell site construction. AT&T reiterated its full-year 2025 financial guidance and long-term outlook, noting no significant impact to adjusted EPS and free cash flow in the first 24 months post-closing, with positive accretion expected in the third year.

Market Implications

The spectrum purchase underscores AT&T’s commitment to being America’s leading connectivity provider, offering a blend of high-performance 5G and fiber services. Analysts note that the transaction strengthens AT&T’s competitive position against other major carriers, particularly as demand for high-capacity networks grows alongside emerging technologies.

By combining nationwide spectrum with an expansive fiber network and a strengthened wholesale partnership with EchoStar, AT&T aims to provide broader coverage, faster speeds, and more reliable services, positioning itself for growth in both consumer and enterprise markets.

This acquisition adds fuel to AT&T’s strategy of investing in wireless and broadband assets to become America’s best connectivity provider.

Inputs from Diana Chou

Editing by David Ryder