AT&T is acquiring wireless spectrum licenses from EchoStar for roughly $23 billion in cash. The acquisition will provide AT&T an average of approximately 50MHz of low-band and mid-band covering virtually all U.S. markets, bolstering connectivity across 5G and fiber, according to CEO John Stankey. AT&T says the deal will accelerate its ability to expand converged subscriber base, customers with both AT&T’s mobile 5G and home Internet services. EchoStar and AT&T have amended their network services agreement to enable EchoStar to operate as a hybrid MNO under the Boost Mobile brand, with AT&T as the primary network services partner.

The deal will not affect EchoStar’s Dish, Sling TV or Hughes operations, Variety reports, adding that the “transaction is expected to close in mid-2026,” subject to conditions including regulatory approval.

The Wall Street Journal reports the deal came together “after pressure from federal regulators” on EchoStar, told earlier this year by the Federal Communications Commission that it would be investigated as to its compliance with terms of its $5 billion 2019 purchase of T-Mobile’s prepaid wireless operations, including Boost.

As a condition of that sale — orchestrated by the Justice Department as part of T-Mobile’s acquisition of Sprint — EchoStar was required to build a nationwide 5G network.

“The next generation of connectivity is beginning to emerge and will require networks with even greater capacity as data demand grows,” explains AT&T in its announcement, adding that the acquisition “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.”

“Now, with the spectrum sale to AT&T, elements of Boost Mobile’s radio access network (RAN) will be ‘decommissioned over time,’” Variety writes, referring to infrastructure that allows devices to communicate with the core network.

“EchoStar plans to use the proceeds from the transaction to retire debt and fund its continued operations and growth initiatives, CEO Hamid Akhavan said Tuesday,” according to an EchoStar news release.

Charlie Ergen, co-founder and chairman of EchoStar added that the AT&T deal and enhanced hybrid MNO agreement “are critical steps toward resolving the FCC’s spectrum utilization concerns.”

Related:
What You Need to Know About AT&T’s Spectrum Deal with EchoStar, Fierce Network, 8/26/25