Key Takeaways
- DISH TV operator EchoStar announced the sale of low- and mid-band spectrum allocations to AT&T for $23 billion.
- The two firms also agreed to change their earlier network services deal to create a hybrid mobile operator relationship.
- EchoStar said the transaction resolves issues with federal regulators, who have been investigating whether it was meeting it wireless and satellite rights obligations.
Shares of EchoStar (SATS) skyrocketed 70% Tuesday as the satellite TV provider, under pressure from federal regulators, sold 50 megahertz of its nationwide low- and mid-band spectrum allocations to AT&T (T) for approximately $23 billion.
The operator of DISH TV, Boost Mobile wireless service, and other properties said the deal includes its 3.45-gigahertz and 600-megahertz spectrum licenses, which it explained gives AT&T the ability to rapidly deploy “the purchased spectrum to U.S. consumers across the country, as AT&T has the option to lease the spectrum, pending the closing of the spectrum sale. This arrangement benefits both AT&T and Boost Mobile subscribers.”
In addition to the sale, EchoStar and AT&T have amended their previous network services agreement, creating a hybrid mobile operator relationship.
AT&T CEO John Stankey added the the acquisition “bolsters and expands our spectrum portfolio while enhancing customers’ 5G wireless and home internet experience in even more markets.”
EchoStar noted that the agreement is part of its “ongoing efforts to resolve the Federal Communications Commission’s (FCC) inquiries.” In May, the FCC launched an investigation into whether the company was meeting certain requirements for both its wireless and satellite rights. President Donald Trump reportedly intervened, calling on EchoStar Chairman Charlie Ergen and FCC head Brendan Carr to strike a deal.
The transaction is expected to close by the middle of next year.
Heading into Tuesday’s session, EchoStar shares were up 30% year-to-date. Shares of AT&T slipped close to 1% but have added one-quarter of their value in 2025.
UPDATE—This article has been updated with the latest share price information.
Source link
