• AT&T to acquire EchoStar's wireless spectrum licenses for $23 billion.
• The deal will enhance AT&T's 5G network capabilities across over 400 markets.
• EchoStar shares surged over 40% in response to the acquisition announcement.
• AT&T plans to finance the deal through available cash and additional borrowings.
• The transaction is expected to close by mid-2026, pending regulatory approvals.

U.S. telecom giant AT&T has announced a major move to enhance its network infrastructure by agreeing to purchase wireless spectrum licenses from EchoStar for approximately $23 billion. This acquisition includes about 30 MHz of mid-band spectrum and 20 MHz of low-band spectrum, strengthening AT&T's presence in over 400 markets across the country, according to Reuters and Los Angeles Times.

The deal is aimed at bolstering AT&T's investment in its fiber and 5G network build-out amidst increased competition and growing internet usage. Following the announcement, EchoStar shares rose sharply, reflecting market enthusiasm, while AT&T's stock saw a modest increase, with a slight drop reported at times, according to Reuters and India Times.

This acquisition is not merely a purchase; it reaffirms AT&T's commitment to expanding its capabilities in a competitive market, where effective spectrum utilization is critical for both operational success and consumer service quality. AT&T has confirmed that this strategic move will support its ongoing objectives to enhance 5G coverage and capacity, thus providing better service to customers, according to Los Angeles Times and Reuters.

The transaction also includes a renewed wholesale network services agreement, allowing EchoStar to function as a hybrid mobile network operator under the Boost Mobile brand, with AT&T as the primary network services partner, according to Reuters and India Times.

Moreover, the impending completion of this deal, which is projected to close by mid-2026 pending regulatory approvals, is seen as a critical response to the scrutiny faced by EchoStar regarding its airwave usage obligations, with implications on market dynamics, as indicated by the ongoing investigations by the FCC. EchoStar CEO Hamid Akhavan noted that this acquisition marks a pivotal step toward ensuring the company’s long-term success, according to Reuters and Los Angeles Times.