AT&T plans to acquire spectrum licenses from EchoStar for $23 billion in an all-cash transaction, boosting its wireless and fiber network capacity. The deal includes 50 MHz of low-band and mid-band spectrum nationwide. AT&T aims to close the acquisition by mid-2026, pending regulatory approvals. The move supports AT&T’s 5G deployment plans and home internet offerings.

The agreement also allows EchoStar to continue offering mobile service under the Boost Mobile brand. AT&T CEO John Stankey highlighted the company’s strategy to enhance connectivity through the acquisition. The deal will be financed through existing cash and incremental borrowings, with temporary increase in debt-to-EBITDA ratio. AT&T reaffirmed its 2025 guidance and share repurchase program.

The acquisition strengthens AT&T’s spectrum portfolio in the race for 5G leadership against competitors like Verizon and T-Mobile. AT&T stock has gained over 45% in the past year. EchoStar CEO Hamid Akhavan stated the proceeds from the transaction will fund growth initiatives. SATS stock has gained over 173% in the past year. SATS shares are up 80.19% to $54.14, while T shares are trading lower at $28.31.

Investors can gain exposure to AT&T and EchoStar stocks through ETFs such as IYZ and UFO. The acquisition marks a significant move in the telecommunications industry, positioning AT&T as a leader in advanced connectivity in the U.S.

Read more at Yahoo Finance: AT&T Expands 5G Empire With $23 Billion EchoStar Spectrum Acquisition