AT&T to buy spectrum licenses from EchoStar for $23 billion

Executive Summary:

Embattled EchoStar Corp, parent company of Dish Network [1.], has agreed to sell spectrum licenses to AT&T Inc. for about $23 billion in a deal that will help the company stay out of bankruptcy and fend off regulatory concerns about its airwave use. The sale will expand AT&T’s wireless network and add about 50 MHz of low-band and mid-band spectrum in an all-cash transaction, the Dallas, Texas-based telecommunications company said in a statement on Tuesday. The deal is expected to close by mid-2026, pending regulatory approval.

Note 1. Dish Network is one of only two U.S. wireless telcos that have commercially deployed 5G SA core network on Amazon’s AWS public cloud..  The EchoStar subsidiary has also deployed 5G OpenRAN.

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Key Takeaways:

  • $23 billion acquisition will add an average of approximately 50 MHz of low-band and mid-band spectrum to AT&T’s holdings – covering virtually every market across the U.S. and positioning AT&T to maintain long-term leadership in advanced connectivity across 5G and fiber
  • Transaction powers improved and capital-efficient long-term growth by accelerating the Company’s ability to add converged subscribers with both 5G wireless and home internet services in more places
  • Leading AT&T network will enable continued EchoStar participation in wireless industry through long-term wholesale network services agreement

AT&T said the acquisition of approximately 30 MHz of mid-band spectrum and 20 MHz of low-band spectrum will strengthen the company’s ability to deliver 5G and fiber services across the US. EchoStar will operate in the US market as a hybrid mobile network operator under its Boost brand, the company said in the statement. AT&T will be its primary network partner for wireless service. AT&T has been spending heavily to expand its fiber-optic network across the country and previously said it would use cash savings from Trump’s tax and spending bill to accelerate those plans. In May, it agreed to buy the consumer fiber operations of Lumen Technologies Inc. for $5.75 billion, expanding its fast broadband service in major cities like Denver and Las Vegas. AT&T intends to finance the EchoStar deal with a combination of cash on hand and borrowings. Jefferies Financial Group Inc. advised AT&T on the EchoStar acquisition.

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Backgrounder:

Federal regulators have been pushing EchoStar to sell some of its airwaves after concerns it had failed to put valuable slices of wireless spectrum to use, Bloomberg reported in July. The FCC launched an investigation in May into whether EchoStar was meeting its obligations for its wireless and satellite spectrum rights. The company skipped bond payments and considered filing for bankruptcy, saying the probe had stymied its ability to make decisions about its 5G network.  In a June meeting, first reported by Bloomberg, Trump urged EchoStar Chairman Charlie Ergen and FCC Chairman Brendan Carr to cut a deal to resolve the dispute. EchoStar shopped the assets to other would-be buyers, including Elon Musk’s Starlink, Bloomberg earlier reported.

The purchase price is $9 billion more than EchoStar paid for the spectrum and $5 billion more than the appraised value used in securitizing the assets, New Street Research’s Philip Burnett said in a research note Tuesday. While $1.5 billion shy of New Street’s valuation, he said the sale price was “nevertheless a great mark on value.”

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Quotes:

EchoStar CEO Ergen described the sale and related agreement to work with AT&T as “critical steps toward resolving the FCC’s spectrum utilization concerns.”

FCC spokesperson Katie Gorscak said “We appreciate the productive and ongoing discussions with the EchoStar team. The FCC will continue to focus on ensuring the beneficial use of scarce spectrum resources.”

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References:

https://finance.yahoo.com/news/t-buy-echostar-spectrum-licenses-160830548.html

https://about.att.com/story/2025/echostar.html

FCC to investigate Dish Network’s compliance with federal requirements to build a nationwide 5G network

FCC approves EchoStar/Dish request to extend timeline for its 5G buildout

New FCC Chairman Carr Seen Clarifying Space Rules and Streamlining Approvals Process

Dish Network & Nokia: world’s first 5G SA core network deployed on public cloud (AWS)

Dish Network to FCC on its “game changing” OpenRAN deployment

DISH Wireless Awarded $50 Million NTIA Grant for 5G Open RAN Center (ORCID)

U.S. Cellular to Sell Spectrum Licenses to Verizon in $1 Billion Deal

The WSJ reports that U.S. Cellular is selling a portion of its retained spectrum licenses to Verizon  for $1 billion in cash as it looks to monetize the spectrum that wasn’t included in the proposed sale to T-Mobile. The Chicago-based telco, which caters to a base of mostly rural customers (approximately 4.5 million) across several states, on Friday said the deal includes the sale of 663 million megahertz point-of-presences of its cellular spectrum licenses.  The deal is expected to close in mid-2025.

Under the terms of the agreement, U.S. Cellular will also sell 11 million megahertz point-of-presences of its advanced wireless services, and 19 million megahertz point-of-presences of its personal communications services licenses. The company said it has entered into additional agreements with two other mobile operators for the sale of other selected spectrum licenses.

TDS, the majority shareholder of U.S. Cellular, has delivered its written consent to approve the Verizon transaction.

Each transaction is dependent upon the closing of the proposed sale of the company’s cellular wireless operations and select spectrum assets to T-Mobile.

In May, T-Mobile agreed to buy much of U.S. Cellular’s operations which included about 30% of UScellular spectrum holdings, all of its customers and its retail stores in a deal worth $4.4 billion. That deal still requires regulatory approvals. It would give T-Mobile more than four million new customers and a trove of valuable spectrum rights to carry more of their data over the air.

According to the financial analysts at New Street Research, UScellular managed to score a higher-than-expected sale price to Verizon. “We valued these licenses at $812 million, and so this transaction is a 23% premium,” they wrote in a note to investors Friday morning.

Importantly, they argued that, as a result, the low band spectrum owned by EchoStar’s Dish Network might be worth more than they had previously calculated. “If we apply the premium to lowband licenses, based on this new mark, Dish’s 600 MHz portfolio would be worth $16 billion, up from $12 billion currently,” they wrote.

The New Street analysts speculated that UScellular’s remaining spectrum holdings will eventually be sold.

“This spectrum transaction took longer than we expected, and it is for fewer of the licenses than we expected,” they wrote of UScellular’s new deal with Verizon. “The monetization of the remaining [UScellular] spectrum could take time, but it will all be sold eventually.”

They argued that UScellular’s remaining, unsold spectrum holdings – which stretch across lowband holdings like 700MHz as well as mid band spectrum like C-band – could be worth as much as $3.2 billion.

But the analysts cautioned that it can be difficult to extrapolate spectrum values from just one transaction alone. For example, the licenses involved in the transaction between Verizon and UScellular are mostly located in smaller markets and therefore may not be directly comparable to spectrum licenses located in bigger cities. Further, most of the spectrum involved in the deal is low band, and so values might be different for large chunks of mid band spectrum.

References:

https://www.wsj.com/business/telecom/u-s-cellular-to-sell-certain-spectrum-licenses-to-verizon-in-1-billion-deal-95daadef?mod=telecom_news_article_pos2

https://www.lightreading.com/5g/how-verizon-s-1b-uscellular-spectrum-deal-affects-echostar-s-dish

T-Mobile to acquire UScellular’s wireless operations in $4.4 billion deal

UScellular adds NetCloud from Cradlepoint to its 5G private network offerings; Buyout coming soon?

Betacom and UScellular Introduce 1st Private/Public Hybrid 5G Network

UScellular’s Home Internet/FWA now has >100K customers

UScellular Launches 5G Mid-Band Network in parts of 10 states

 

WRC-23 concludes with decisions on low-band/mid-band spectrum and 6G (?)

The World Radiocommunication Conference 2023 (WRC-23) [1.] in Dubai, UAE ended on Friday.  Regulators agreed on new mobile low-band spectrum (below 1 GHz) and mid-band spectrum in the 3.5 GHz and 6 GHz ranges.  They also discussed 6G (which is an oxymoron to this author since the many problems we’ve identified with 5G have not been resolved).

Note 1.  WRC’s are held every four years under the auspices of the International Telecommunication Union Radio communications sector (ITU-R). They are intended to harmonize spectrum usage across the world so that network operators, equipment vendors and others can avoid international fragmentation and leverage global economies of scale.

“WRC-23 has provided a clear roadmap for mobile services to continue to evolve and expand for the benefit of billions across the globe,” said John Giusti, Chief Regulatory Officer at the GSMA. “The GSMA believes that no-one should be left behind in the digital age and the decisions of WRC-23 will allow us to deliver a brighter future where mobile brings communities together, delivers industrial agility and provides economic growth. Implementation of the WRC-23 decisions will support global digital ambitions, deliver greater digital equality and unlock the full power of connectivity.”

The detailed WRC-23 provisional final acts may be read here.

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Final harmonization of the 3.5 GHz band (3.3-3.8 GHz) – the pioneer 5G band – was achieved across Europe, the Middle East and Africa (EMEA) as well as throughout the Americas.

A new band – the 6 GHz band (6.425-7.125 GHz) – was identified for mobile in every ITU Region – EMEA, the Americas and the Asia Pacific. Countries representing more than 60% of the world’s population asked to be included in the identification of this band for licensed mobile at WRC-23. The 6 GHz spectrum is now the harmonized home for the expansion of mobile capacity for 5G-Advanced and beyond.

“The 6GHz band is the only remaining mid-band spectrum currently available to respond to the data traffic growth in the 5G-Advanced era,” GSMA said in a statement. As the primary international organization representing the 5G industry, it has been pushing for 5G operations in the 6GHz band.  “The WRC-23 decision to harmonize the 6GHz band … is a pivotal milestone, bringing a population of billions of people into a harmonized 6GHz mobile footprint. It also serves as a critical developmental trigger for manufacturers of the 6GHz equipment ecosystem,” GSMA said.

ITU-APT Foundation of India said the agreement also opens the path for opening the lower 6 GHz band from 5925-6425 MHz for unlicensed usage to promote innovation in the country.

However, the 6 GHz band approval at WRC-23 may not affect the U.S. market. U.S. regulators at the FCC in 2020 reserved the entire 6GHz band for Wi-Fi and other unlicensed operations, over the objections of the 5G industry.

“If the United States doesn’t present alternative frequency ranges for 5G services that can be internationally harmonized, 5G operations in the 6GHz band could be adopted in more regions. This would allow Chinese equipment to proliferate in regions where the plan is adopted, setting back efforts to make Wi-Fi 6 in the band an international standard,” warned Jeffrey Westling, director of technology and innovation policy at the American Action Forum US nonprofit, in a post published prior to the start of WRC-23.

Jessica Rosenworcel, chairwoman of the FCC, approved the WRC-23’s work. “The WRC was not just weeks of work in Dubai, but also years of preparation by the FCC, experts across the government, and our telecommunications industry,” she said in a statement. “The delegation’s accomplishments will promote innovation in unlicensed spectrum including Wi-Fi, support 5G connectivity, pave the way for 6G, and bolster U.S. leadership in the growing space economy. We now look forward to getting to work on preparations for WRC-27.”

“Thank you to Deputy Assistant Secretary Steve Lang for his able leadership and to the FCC staff along with the entire U.S. delegation for their exceptional and tireless efforts at WRC-23,” said FCC Commissioner Anna M. Gomez in a statement. “WRC-23 was the culmination of years of collaboration and hard work between our strong interagency team, the telecommunications industry, and our regional and international partners. The delegation’s accomplishments on terrestrial licensed and unlicensed spectrum as well as space allocations will advance science and economic prosperity worldwide.”

The U.S. Department of State also issued a media note on the delegation’s work at WRC-23 here.

The Wi-Fi Alliance, a U.S. trade group designed to promote the technology in unlicensed bands, also cheered the new 6GHz decision at the WRC-23. The association supported the FCC’s decision to allocate the entire 6GHz band for unlicensed operations.

“The conference adopted an international treaty provision to explicitly recognize that this spectrum is used by wireless access systems such as Wi-Fi,” the Wi-Fi Alliance said in a statement about the WRC-23 decision on 6GHz. The Wi-Fi Alliance noted that WRC-23 identified the 6GHz band for licensed operations in Europe, Africa and a few other countries, but not globally.

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WRC-23 also set out a path towards greater digital equality by defining mobile use of more low-band spectrum in the 470-694 MHz band in EMEA. Low bands can help expand capacity for the internet connectivity of rural communities as their signals reach over wide areas. WRC-23’s new low-band mobile allocations will be an important tool to break down the barriers towards digital equality in the EMEA region and lower the urban/rural connectivity divide.

“Over half the world is connected to the mobile internet today,” said Luciana Camargos, Head of Spectrum at the GSMA“But, as mobile connectivity develops, we need to ensure that we can deliver services for everyone. The great legacy of WRC-23 will be in allowing us to do so sustainably, affordably and in a way that delivers for the whole planet. We cannot stop here – WRC-23 is only the starting gun and now governments will need to act on its decisions, enabling new mobile technologies that embrace sustainability and unleashing the full potential of mobile to deliver a better tomorrow for our planet.”

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WRC-23 attendees also moved forward on the topic of 6G. Prior to the start of the three week conference in Dubai, the ITU adopted a resolution intended to guide the development of a 6G standard.  During the conference, regulators agreed to study the 7-8.5GHz band for 6G in time for the next ITU conference in 2027. That spectrum band aligns with proposals from Ericsson and others for early 6G operations to sit between 7 GHz and 20 GHz.

“This global agreement [on the 7-8.5GHz band] ensures the ongoing growth of 5G around the world and paves the way for 6G from 2030 onwards,” wrote the Global mobile Suppliers Association (GSA) in a statement. “Technical work now starts to determine the sharing and compatibility of 6G with incumbent uses of the identified spectrum.”

Joe Barrett, President of GSA, commented: “The global agreement reached by ITU represents a significant milestone not just in the continued growth of 5G and 5G-Advanced connectivity, but also in the path to 6G. The entire global mobile ecosystem can now innovate with confidence and a clear sense of the spectrum requirements for 6G, both in terms of its future availability and compatibility with other users of the spectrum. At GSA we appreciate the hard work and diligence of ITU and its members that has gone into reaching this welcome global agreement at WRC-23. GSA’s Spectrum Group will continue to contribute studies and technical analysis to international, regional and individual country policymakers and regulators to facilitate the timely availability of spectrum for use by mobile network operators. As an industry, we now look forward to continued 5G growth, 6G innovation and the socio-economic benefits mobile connectivity brings globally.”

Like this author, the Financial Times is not enthusiastic about 6G:

“CB Insights shows that mentions of 5G during earnings calls peaked in 2021 and have since fallen. Network operator capital spending growth is expected to dip next year. Operators want to see better returns on their investment in 5G before they contemplate further network upgrades.”

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References:

https://www.itu.int/dms_pub/itu-r/opb/act/R-ACT-WRC.15-2023-PDF-E.pdf

GSMA HAILS GROUNDBREAKING SPECTRUM DECISIONS AT WRC-23 

https://www.lightreading.com/6g/6ghz-satellites-and-6g-addressed-at-wrc-23#close-modal

https://docs.fcc.gov/public/attachments/DOC-399175A1.pdf

https://docs.fcc.gov/public/attachments/DOC-399195A1.pdf

https://www.state.gov/u-s-department-of-state-leads-successful-u-s-delegation-to-worldradiocommunication-conference-in-dubai/

GSA welcomes agreement on future of 5G and 6G spectrum at WRC-23

https://www.business-standard.com/industry/news/itu-reaches-global-agreement-to-open-new-6-ghz-spectrum-band-for-5g-6g-123121401231_1.html

https://www.ft.com/content/e59a4818-c630-4dac-9c36-477a0c99a9cd

 

 

 

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