Spectrum sales will generate EchoStar a considerable profit and ease FCC pressure, but at the cost of its mobile and satellite network ambitions
EchoStar has agreed to sell 600MHz and 3.45GHz frequencies to AT&T
On 26 August 2025, EchoStar announced that it had entered into a definitive agreement to sell a significant part of its spectrum holding to AT&T for around $23bn (£16.9bn) in cash. AT&T is set to acquire 50MHz of nationwide spectrum, specifically 20MHz in the 600MHz band and 30MHz in the 3.45GHz band, earning EchoStar a substantial profit on the prices paid at auctions in 2017 and 2022. As part of the agreement, AT&T can lease the spectrum until the deal officially closes, potentially enabling the company to deploy the purchased spectrum ahead of the transaction’s expected close in mid-2026. The firms have also amended their network services agreement to create a hybrid mobile network operator relationship. As a result, customers of Boost Mobile (now an EchoStar subsidiary following EchoStar’s acquisition of Dish in 2023) will primarily rely on AT&T’s network for connectivity. However, they will also continue to receive service from T-Mobile’s network – a condition of the Sprint/T-Mobile merger in 2020. In turn, elements of Boost Mobile's radio access network (RAN) will be decommissioned over time.
A step towards resolving the FCC’s inquiries into EchoStar’s spectrum utilisation
Completion of the proposed transaction will occur once all necessary regulatory approvals are received and other closing conditions are satisfied. John Stankey (CEO, AT&T) stated that from his discussions with regulators – i.e. the Federal Communications Commission (FCC) and Department of Justice (DOJ) – he is confident that the deal will go ahead, claiming that authorities are “interested in seeing fallow spectrum move into service as quickly as possible”. This has been a priority of Brendan Carr (Chair, FCC), who has argued that EchoStar is effectively squatting in valuable bands, leaving them unused while the regulator seeks to increase spectrum utilisation and population coverage. The FCC is currently undertaking two inquiries into EchoStar’s licences, which are seen as a way of ensuring that some of those frequencies are made available to other users. According to Charlie Ergen (Co-Founder and Chairman, EchoStar), EchoStar and Boost Mobile have met all of the FCC's network rollout milestones despite the material uncertainties caused by the ongoing inquiries; however, this spectrum sale to AT&T is a critical step towards resolving the FCC's spectrum utilisation concerns.
AT&T is set to leapfrog Verizon as the second largest holder of spectrum in the US
In light of the FCC’s inquiries, AT&T’s optimism may be well-founded. In July 2025, the regulator approved T-Mobile’s acquisition of UScellular, facilitating the combination of the US’ second and fourth largest mobile network operators. However, despite reaching the same conclusion, the DOJ was unambiguous in describing the accumulation of spectrum among the ‘Big Three’ operators (i.e. AT&T, T-Mobile, Verizon) as a key factor in developing and maintaining their “oligopoly”. The DOJ’s pledge to remain ready to investigate further spectrum consolidation indicates that it will represent a tougher hurdle for the parties to clear. Should the EchoStar deal ultimately receive the green light, AT&T would strengthen its low- and mid-band spectrum portfolio (which are compatible with its 5G network), overtaking Verizon as the second largest holder of spectrum in the country, after T-Mobile.
SpaceX’s acquisition of valuable AWS-4 licences will support its D2D strategy
Following the AT&T announcement, EchoStar suggested that more sales were on the cards, stating that the operator continues to evaluate strategic opportunities for its remaining spectrum portfolio. On 8 September 2025, EchoStar struck a deal to sell S-Band (AWS-4 and PCS H Block) spectrum licences – about 50MHz in total – to satellite provider SpaceX for $17bn (£12.5bn), half in cash and half in stock. The sale would come with a longer term partnership allowing Boost Mobile customers to access SpaceX’s network. Elon Musk (CEO, SpaceX) previously accused EchoStar of not meeting its spectrum utilisation obligations and lobbied for access to the operator’s frequencies, particularly the valuable AWS-4 (i.e. 2GHz) band. The proposed transaction is widely seen as a move that will support the direct-to-device (D2D) service of SpaceX’s Starlink constellation. However, the planned sale signals the end of Echostar’s own D2D ambitions and that the US has effectively given up on creating a new fourth national mobile network operator. Though Dish (later EchoStar) was expected to become that independent challenger in the country’s mobile market, it never achieved the scale necessary to survive despite pursuing an innovative Open RAN project, which it had hoped would provide operational and cost advantages over the three incumbents. FCC approval for the Starlink deal is presumed, with the regulator stating publicly that, coupled with the AT&T transaction, it will “supercharge competition”, extend service coverage and boost US leadership in next-generation connectivity.
