In a blockbuster move that could reshape the U.S. wireless landscape, EchoStar Corp., parent of Dish Network, announced Tuesday it will sell a hefty block of spectrum licenses to AT&T in a $23 billion all-cash transaction. The deal marks one of the largest spectrum sales in years, placing fresh firepower in AT&T’s 5G arsenal while setting EchoStar on a more stable financial course.

A Spectrum Shake-Up Worth Billions

The deal includes EchoStar’s 3.45 GHz and 600 MHz spectrum licenses—amounting to 50 MHz of nationwide coverage across more than 400 U.S. markets. AT&T said the acquisition will supercharge its 5G wireless and home internet services, while EchoStar said the proceeds will be used to retire debt and fund growth initiatives.

“This transaction puts our business on a solid financial path, further facilitating EchoStar’s long-term success,” said EchoStar CEO Hamid Akhavan. “We continue to evaluate strategic opportunities for our remaining spectrum portfolio in partnership with the U.S. government and industry participants.”

From Sprint and T-Mobile to AT&T

The licenses at the heart of the deal trace back to T-Mobile’s merger with Sprint in 2020. Under conditions imposed by the U.S. Department of Justice, T-Mobile was required to divest certain spectrum to Dish. Now, with AT&T stepping in, the prized assets are poised for rapid deployment.

Hybrid Network Strategy

As part of the agreement, AT&T and EchoStar amended their network services pact to form a hybrid mobile network operator relationship. Boost Mobile subscribers, owned by EchoStar, will continue to access T-Mobile’s network while also connecting to AT&T towers through Boost’s cloud-native 5G core.

The dual access promises subscribers uninterrupted service and underscores EchoStar’s hybrid-network strategy—leveraging partnerships with multiple carriers while divesting excess assets to strengthen its balance sheet.

AT&T Gains Competitive Edge

AT&T Chairman and CEO John Stankey said the acquisition bolsters the company’s competitive position.
“This acquisition expands our spectrum portfolio while enhancing customers’ 5G wireless and home internet experience,” Stankey said. “No one brings wireless and fiber internet to more places or does it better than AT&T.”

The sale also allows AT&T to begin leasing the spectrum ahead of the closing, ensuring a fast rollout to consumers nationwide.

Legal Heavyweights Steering the Deal

EchoStar was represented by White & Case LLP, led by partners Michael Deyong and Jonathan Michels.
AT&T turned to Sullivan & Cromwell LLP, with a team including corporate partners Eric Krautheimer, Melissa Sawyer, and Ari Blaut.