What's Happening?
AT&T has begun deploying the 3.45MHz midband spectrum acquired from EchoStar, even though the $23 billion transaction has not yet closed. This rapid deployment is facilitated by a short-term spectrum manager lease arrangement, allowing AT&T to reach two-thirds
of the U.S. population by mid-November. CEO John Stankey credits the fast-paced rollout to the efforts of AT&T's teams and supportive FCC policies. The acquisition includes approximately 30MHz of nationwide midband spectrum and 20MHz of lowband spectrum. The midband spectrum is compatible with AT&T's existing network, enabling a swift rollout, while the lowband spectrum will take several years to deploy. The EchoStar spectrum is expected to enhance 5G performance and expand Internet Air fixed wireless access, which saw growth in the third quarter.
Why It's Important?
The deployment of EchoStar's midband spectrum is significant for AT&T as it aims to improve 5G performance and expand its fixed wireless access services. This move positions AT&T to better compete in the telecommunications industry, particularly in areas where fiber infrastructure is not feasible. The rapid rollout of midband spectrum is crucial for AT&T's growth ambitions, allowing it to offer converged fixed and mobile services to a broader customer base. Additionally, the deal with EchoStar includes a wholesale arrangement with Boost Mobile, which will operate as a hybrid mobile network using AT&T's infrastructure, potentially increasing AT&T's wholesale revenues.
What's Next?
AT&T plans to continue its rapid deployment of the midband spectrum, with Internet Air expected to be available through more sales channels in 2026. The company is focused on leveraging its assets to lead in retail service revenues by 2030. While AT&T is not currently seeking further acquisitions, it remains committed to executing its strategic plans and maintaining its position in the market. The completion of the EchoStar transaction and the integration of its spectrum assets will be key milestones in AT&T's growth strategy.
