#USA #Dallas #ATT #Spectrum #EchoStar

AT&T's Strategic Move: Acquisition of Spectrum Licenses from EchoStar

In an ambitious bid to bolster its market leadership in telecommunications, AT&T has announced its plan to acquire spectrum licenses from EchoStar for approximately $23 billion. This acquisition represents a significant leap forward in enhancing AT&T's connectivity offerings, allowing the company to provide improved services to millions of customers across the United States.

Expanding Spectrum Holdings

The newly acquired spectrum includes about 30 MHz of nationwide mid-band spectrum at 3.45 GHz and around 20 MHz of low-band spectrum at 600 MHz. This deal will effectively cover more than 400 markets across the country, positioning AT&T for long-term success in both 5G and fiber connectivity. The acquisition is set to accelerate AT&T’s ability to serve customers with high-performance wireless services, such as 5G and home internet options, notably expanding its current service footprint.

As stated by John Stankey, AT&T's Chairman and CEO, "This acquisition bolsters and expands our spectrum portfolio while enhancing customers' 5G wireless and home internet experience in even more markets." This encompasses customers at home, businesses, and essential services, ensuring robust connectivity that is crucial for modern demands.

Future-Proofing AT&T's Infrastructure

This strategic acquisition not only aims to enhance AT&T's existing offerings but also addresses the growing demand for data. With the rise of AI technologies and IoT applications, networks will require increased capacity to handle higher volumes of data. Through this move, AT&T anticipates playing a pivotal role in facilitating emerging technologies, such as AI-driven devices, autonomous vehicles, and advanced robotics.

Furthermore, AT&T’s agreement with EchoStar extends beyond the purchase, establishing a long-term wholesale network services partnership. This collaboration allows EchoStar to serve customers under the Boost Mobile brand using AT&T's network, thereby enhancing service delivery while enabling both companies to thrive in the competitive telecommunications landscape.

Financial Overview and Guidance

AT&T intends to finance this significant acquisition with cash on hand and some incremental borrowings. While the company anticipates that its net debt-to-adjusted EBITDA ratio will rise initially post-acquisition, it signals its intent to revert to its leverage target ratio of approximately 2.5x over the next three years. The organization is committed to maintaining its capital returns plan, with an expected capacity to repurchase shares amounting to $20 billion from 2025 to 2027.

Crucially, AT&T aims to provide customers with enhanced options for home internet and wireless services. As part of its strategy, the company plans to accelerate the deployment of its advanced fixed wireless home internet service, AT&T Internet Air, leveraging the new spectrum licenses. This will allow AT&T to reach underserved areas while transitioning customers from outdated copper services to more modern and efficient connectivity options.

Conclusion

As AT&T moves closer to completing the acquisition in mid-2026, subject to regulatory approvals, it stands firm on its vision to become the best connectivity provider in America. Through this strategic investment in spectrum licenses, AT&T is not only enhancing its service portfolio but also committing to drive sustainable growth in a rapidly evolving digital environment. This acquisition represents a future-minded approach, ensuring that AT&T remains at the forefront of technological advancements in the telecommunications arena.