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EchoStar Spectrum Sale Aims to Resolve FCC Dispute
EchoStar Corporation saw its stock surge more than 70% on Tuesday after AT&T announced a major all-cash deal to purchase key wireless spectrum assets from the company. The agreement, valued at approximately $23 billion, significantly enhances AT&T’s spectrum holdings, while potentially resolving regulatory pressure EchoStar has faced over its spectrum usage.
Deal Details: 50 MHz Spectrum Across 400+ U.S. Markets
AT&T said the acquisition will give it access to about 50 megahertz of mid-band and low-band wireless spectrum, expanding coverage across over 400 U.S. markets. These frequencies are crucial to building out robust 5G networks, offering a balance of speed and signal penetration.
The transaction is expected to close by mid-2026, pending regulatory approvals, including from the Federal Communications Commission (FCC).
A Strategic Move Amid Regulatory Scrutiny
EchoStar disclosed in a regulatory filing that the sale is part of the company’s “ongoing efforts to resolve the FCC’s inquiries” into its spectrum use. The FCC had previously raised concerns about whether EchoStar was in full compliance with federal rules requiring timely buildout of 5G infrastructure.
In a May 2025 letter, FCC Chairman Brendan Carr addressed EchoStar’s chairman and cofounder Charlie Ergen, confirming that the agency would investigate the company’s spectrum utilization. The letter came after a formal complaint by SpaceX, which argued that EchoStar had left valuable mid-band spectrum “chronically underused”, urging regulators to reassign it to “new satellite entrants” like SpaceX’s Starlink service.
Hybrid Network Agreement with Boost Mobile
Alongside the spectrum sale, AT&T and EchoStar also announced an expansion of their network services agreement. Under the updated terms, EchoStar will function as a hybrid mobile network operator (MNO) and will continue to offer wireless services through the Boost Mobile brand.
EchoStar Chairman Charlie Ergen addressed the development in a statement:
“EchoStar and Boost Mobile have met all of the FCC’s network buildout milestones. However, this spectrum sale to AT&T and hybrid MNO agreement are critical steps toward resolving the FCC’s spectrum utilization concerns.”
This agreement allows EchoStar to leverage AT&T’s infrastructure while maintaining a footprint in the competitive U.S. wireless market.
AT&T’s Perspective: “A Win All Around”
AT&T CEO John Stankey described the deal as a positive outcome for both companies and consumers.
“It’s a fantastic opportunity to see more services put together the way customers want to buy them together,” Stankey told CNBC during a “Squawk Box” interview. “And as a result of that, I think ultimately regulators are going to look at this and say it’s very, very attractive.”
Despite the massive scale of the deal, AT&T shares dipped slightly, falling less than 1% on the day. However, analysts suggest the long-term strategic value of the newly acquired spectrum far outweighs short-term price movement.
Why the Deal Matters
This acquisition underscores AT&T’s focus on expanding its 5G capabilities, especially in mid-band spectrum, which experts view as the “sweet spot” for wireless networks—offering a strong balance between speed and coverage.
Meanwhile, EchoStar may gain regulatory relief and focus more strategically on its core satellite and telecom businesses, especially after ongoing scrutiny from both the FCC and competitors like SpaceX.
The move also illustrates how spectrum ownership is becoming a battleground in the next generation of connectivity, especially as both satellite and terrestrial providers compete to shape the future of global internet access.
