What's Happening?
AT&T has announced an agreement to purchase wireless spectrum licenses from EchoStar for approximately $23 billion. This acquisition includes 30 MHz of nationwide mid-band spectrum and 20 MHz of low-band spectrum, covering over 400 markets across the U.S. The deal aims to bolster AT&T's spectrum portfolio, enhancing its 5G wireless and home internet services. The transaction is expected to close in mid-2026, pending regulatory approvals. AT&T plans to deploy these licenses to support its 5G network and fiber expansion targets, as outlined in its 2025 financial guidance.
Why It's Important?
The acquisition positions AT&T to maintain leadership in advanced connectivity, particularly in 5G and fiber services. By expanding its spectrum holdings, AT&T can offer improved reliability and faster speeds, meeting growing data demands. This move supports AT&T's strategy to become America's best connectivity provider, enabling emerging technologies like AI and IoT. The transaction is expected to drive long-term growth and operational efficiencies, reducing the need for additional cell sites and supporting AT&T's capital returns plan.
What's Next?
AT&T intends to finance the transaction with cash and incremental borrowings, aiming to return to its leverage target within three years. The company plans to accelerate the deployment of its advanced fixed wireless home internet service, AT&T Internet Air, and transition customers to fiber services. The acquisition will also enhance AT&T's ability to offer next-generation connectivity, transitioning customers from legacy services to modern solutions.
