EchoStar (NASDAQ: SATS) announced it has entered into a definitive agreement with AT&T (NYSE: T) to sell approximately 30 MHz of nationwide 3.45 GHz mid-band spectrum and approximately 20 MHz of nationwide 600 MHz low-band spectrum for an aggregate purchase price of $22.65 billion in cash, pending potential adjustments. The transaction is expected to close in the first half of 2026, subject to certain closing conditions, including regulatory approvals.
These licenses cover virtually every market across the U.S., significantly strengthening AT&T’s low-band and mid-band spectrum holdings. AT&T and EchoStar (operating as DISH) were the big winners in FCC Auction 110 acquiring 3.45 GHz licenses in all 406 PEAs around the country. With this deal, AT&T now owns the lion’s share of 3.45 GHz mid-band spectrum.
The company previously indicated that it was undertaking simultaneous deployment of mid-band C-band and 3.4 GHz using dual-band radios to save labor and equipment costs. The 600 MHz spectrum, which AT&T currently lacks, gives the company 486 licenses for 20 MHz of low-band nationwide coverage with long-range propagation characteristics that are ideal for serving small town and rural areas.
AT&T has the option to lease the spectrum to get deployments started as soon as possible, ahead of the closing of the spectrum sale. The company says this arrangement benefits both AT&T and Boost Mobile subscribers. Moreover, AT&T expects this spectrum acquisition and deployment will be handled within its multi-year capex guidance of $22.0-22.5 billion range provided with its 2Q25 earnings release, as Inside Towers reported.
Perhaps more significantly, AT&T is collaborating with EchoStar in a way that Boost Mobile will continue to compete in the U.S. wireless market as a hybrid MNO (H-MNO). Under this H-MNO arrangement, Boost Mobile offers its subscribers over-the-air connectivity through AT&T’s radio access network on a shared basis, but that subscriber traffic will be managed through Boost Mobile’s cloud-native 5G core. Both companies acknowledge that such an arrangement is beneficial for reducing costs and improving coverage, particularly in challenging or rural environments.
EchoStar says this transaction is part of its ongoing efforts to resolve the FCC inquiries regarding spectrum usage and meeting buildout deadlines as the fourth national MNO.
Boost Mobile subscribers will continue to have access to the T-Mobile (NASDAQ: TMUS) network under the existing MVNO agreement. Boost Mobile says that its customers will experience no interruptions to service. The companies indicate, however, that as a result of this H-MNO transaction, elements of Boost Mobile’s existing RAN will be decommissioned over time.
“The proceeds of this transaction will be used for, among other things, retiring certain debt obligations and funding EchoStar’s continued operations and growth initiatives,” said Hamid Akhavan, EchoStar CEO and president. “We continue to evaluate strategic opportunities for our remaining spectrum portfolio in partnership with the U.S. government and wireless industry participants.”
EchoStar points out that the operations of its other businesses, including DISH TV, Sling TV and Hughes, will not be impacted by this transaction.
By John Celentano, Inside Towers Business Editor
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